Dismissal (employment) in France

In French Labour Law a Dismissal is the breach of the employment contract by the employer. French Labour Law stipulates that an employment contract can be terminated by either of the parties.^[1] The 2008 reform of Labour Law introduced the possibility of a negotiated termination (voluntary termination of employment).

In France the following types of dismissal are possible: Dismissal for economic reasons (redundancy) - the dismissed person may not be replaced. This type of dismissal can occur for the following reasons:

Serious economic difficulty
Technological change
Organisational change
Liquidation of the company.

Dismissal linked to the employee - an employee dismissed will be replaced by another employee. This covers the following areas:

Not being able to do your job properly
Due to serious differences with employer or colleagues
Misconduct.

Compensation

Statutory Compensation

Statutory compensation is the legally binding minimum and may be replaced by a higher amount agreed between the employer and the employee representatives under a collective agreement. Employees who have held a position for more than 12 months are entitled to compensation for redundancy & dismissal (except if they have been dismissed for Gross Misconduct).^[2]

The amount of compensation is one-fifth of the monthly salary (4.5 days), excluding one-time bonuses, per year of employment up to 10 years, 2⁄15 per year thereafter. For example, a worker with a monthly salary of €1000 in his fifth year of employment would receive €1000 compensation.

Collective Compensation

This replaces the statutory minimum if it exists. It is tax-free and no payroll tax applies.

Claim for unfair dismissal or redundancy

An employment tribunal can overturn a dismissal or redundancy. If you win your case, the tribunal can order the employer to do any of the following:

Pay compensation
Pay tribunal fees and witness expenses you've paid
Improve working conditions
give the employee their job back.

The amount of compensation can depend on the number of employees in the company and their length of service and salary.

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Dismissal (employment) in France

Compensation

Statutory Compensation

Collective Compensation

Claim for unfair dismissal or redundancy

Employees with special protection against dismissal and redundancy

See also

Notes

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