How to properly dismiss employees in France: Guide for employers

Dismissing an employee in France is a process governed by strict legal requirements designed to protect the rights of workers. French labor law mandates a specific set of procedures that must be followed to ensure fairness and legality. This guide will walk you through the key steps of the dismissal process, from establishing valid grounds for termination to ensuring all legal obligations are met, helping companies navigate the complexities of French employment law.

In France, employers must have legitimate and clearly defined reasons for dismissing an employee. These reasons typically fall into two main categories: personal reasons and economic reasons.

For personal reasons, dismissal may be justified by issues such as professional misconduct, underperformance, or incompetence. For example, if an employee consistently fails to meet performance goals or exhibits inappropriate behavior in the workplace, the employer has grounds for dismissal. A notable case involved the dismissal of a French employee for chronic lateness and absenteeism, which was upheld by the courts as a valid reason for termination. Personal reasons may also include serious misconduct (faute grave), such as theft, which allows the employer to dismiss the employee without notice or compensation.

On the other hand, economic dismissal is linked to the financial health of the company. Employers may dismiss workers if they are facing financial difficulties, a need for restructuring, or technological changes that render certain positions unnecessary. For instance, if a company needs to close a department due to declining business, it can invoke economic dismissal. A 2020 report by INSEE indicated that approximately 100,000 employees lost their jobs due to economic restructuring during that year.

According to the Labour Code (Code du travail), all dismissals must be backed by solid evidence and properly documented to prevent disputes. If an employer dismisses someone without legitimate reasons or fails to follow the correct procedures, the dismissal could be considered unfair. This may result in significant legal consequences, including compensation for the employee. For example, in cases of unfair dismissal, the employee may file a claim with the Prud'hommes and receive compensation, often equivalent to several months' salary.

By ensuring that dismissals are based on legitimate reasons, employers can avoid costly legal disputes and comply with the strict protections provided by French labor law.

"A notable case involved the dismissal of a French employee for chronic lateness and absenteeism, which was upheld by the courts as a valid reason for termination."

Susanne Goniak
Senior Recruiter
Eurojob-Consulting

In France, the dismissal process is highly regulated, and employers must follow a specific legal procedure to ensure the dismissal is valid. Failure to comply with these formalities can result in the dismissal being deemed unfair, leading to potential legal repercussions. The procedure begins with a preliminary interview (entretien préalable) and ends with a formal termination letter, both of which are crucial steps.

The first mandatory step is the preliminary interview. The employer must send the employee a written invitation to this interview at least five working days before the meeting. This letter must clearly state the reasons for the interview and inform the employee of their right to bring an adviser, such as a union representative. For instance, if an employee is being dismissed for poor performance, the invitation should outline the specific performance issues to be discussed. During the interview, the employer presents the grounds for the potential dismissal, while the employee has the opportunity to respond.

The French Supreme Court (Cour de Cassation) has ruled in several cases that if this preliminary interview is not conducted properly, the dismissal can be considered invalid. For example, in one case, a company that failed to notify the employee of their right to have an adviser present saw the dismissal overturned by the court.

Once the interview is completed, the employer must wait at least two business days before issuing a formal dismissal letter. This letter is a critical part of the process, as it must include a clear and precise explanation of the reasons for the dismissal. The Labour Code requires that the reasons stated in the letter are detailed and specific, as vague or ambiguous explanations can lead to the dismissal being contested. For example, stating "poor performance" without specifying the nature of the underperformance would not be sufficient.

Moreover, the dismissal letter should be sent by registered mail to ensure there is a clear record of when the employee was notified. Failure to properly deliver this letter could also invalidate the dismissal.

A real-world example of the importance of this step occurred in 2019, when an employer was found to have failed in adequately explaining the reasons for dismissal in the termination letter. As a result, the dismissal was ruled unjustified, and the employee was awarded six months' salary in compensation.

By following the formal procedure – from conducting a preliminary interview to issuing a detailed dismissal letter – employers can ensure that the dismissal is legally sound and minimize the risk of legal disputes with the Prud'hommes.

After an employee is dismissed in France, they are typically entitled to a notice period, unless the dismissal is for gross misconduct (faute grave) or willful misconduct (faute lourde), which can lead to immediate termination without notice or compensation. The length of the notice period varies based on the employee’s seniority and the terms outlined in their employment contract or collective bargaining agreements.

For example, an employee with less than six months of service is usually entitled to a one-month notice period. On the other hand, employees with more than two years of service are often entitled to a two- or three-month notice period. During this time, the employee continues to receive their full salary and benefits. Employers may choose to have the employee work during this period or pay in lieu of notice, meaning the employee receives the equivalent compensation without needing to fulfill the notice period.

In addition to the notice period, employees are often entitled to severance pay (indemnité de licenciement). According to the Labour Code, this compensation is mandatory for employees with at least eight months of service. The amount of severance pay depends on the employee’s length of service. Typically, the calculation is based on the following:

• One-quarter of a month's salary per year of service for the first ten years.
• One-third of a month's salary per year of service for every additional year beyond the first ten.

For example, an employee who worked for a company for 15 years would be entitled to severance pay equivalent to approximately 4.16 months' salary.

In cases of economic dismissal, such as when a company is undergoing financial difficulties or restructuring, employees may receive additional compensation if they belong to a group of workers impacted by a collective redundancy plan. For instance, a company undergoing restructuring might offer a severance package that includes financial support for retraining or job search assistance as part of their social plan (plan de sauvegarde de l’emploi).

In 2020, Renault implemented such a plan, offering additional compensation and job support to thousands of employees affected by layoffs during a period of financial restructuring.

French labor law also requires that certain documents be provided to the dismissed employee at the end of their notice period, including the work certificate (certificat de travail), the unemployment insurance certificate (attestation France Travail), and details of any remaining paid leave (solde de tout compte).

By respecting the legally mandated notice period and providing the appropriate compensation, employers can avoid disputes and comply with the requirements of the Labour Code, ensuring a smoother transition for both the company and the employee.

In France, employees have the right to contest a dismissal if they believe it was unjustified, unfair, or if the employer did not follow the proper legal procedures. This process typically involves filing a claim with the Conseil de Prud'hommes, which is responsible for resolving disputes between employers and employees. Many employees who feel their dismissal was without legitimate grounds or who believe that the procedural steps were not correctly followed can seek redress through these labor courts.

A dismissal can be contested for several reasons. For example, if an employer fails to provide a valid reason for termination in the dismissal letter or does not conduct a preliminary interview, the employee may argue that the dismissal is procedurally flawed. In 2019, a notable case involved an employee who was dismissed for poor performance, but the employer failed to substantiate the claims with clear evidence during the dismissal process. The labor court ruled in favor of the employee, ordering the company to pay six months' salary in compensation for wrongful dismissal.

The Prud'hommes evaluate the legality of the dismissal on two main grounds:

• Was there a valid reason for dismissal? According to the Labour Code, the reason must be precise, real, and serious, meaning that vague or subjective reasons are not sufficient.

• Were the proper procedures followed? If an employer fails to adhere to the procedural requirements, such as holding a preliminary interview or providing adequate notice, the dismissal may be deemed unjustified, even if there was a legitimate cause.

If the labor court finds that the dismissal was unfair (licenciement abusif), the employee may be awarded compensation. This amount is often based on the employee's length of service and salary, with damages ranging from one month's salary for newer employees to up to two years' salary for those with longer tenure.

For example, in a high-profile case involving the French supermarket chain Carrefour, the labor court ordered the company to pay an ex-employee €50,000 after ruling that the dismissal was unjustified due to the failure to follow proper procedures.

In certain situations, the labor court may also order the employee's reinstatement if the dismissal is found to be particularly unjust. This is more common in cases where the dismissal was based on discrimination or retaliation, such as firing an employee for union activities or after they filed a harassment complaint. French labor laws provide strong protections in these cases, and employees can contest dismissals if they believe the termination was linked to such unfair practices.

If either party disagrees with the initial ruling, they can appeal the decision to the Court of Appeal (Cour d'appel), which may reassess the case. However, this process can be lengthy and costly for both parties. Employers are therefore encouraged to follow all legal procedures carefully and to document the grounds for dismissal thoroughly to avoid costly legal disputes.

By ensuring compliance with the legal dismissal procedures and preparing for potential challenges at the Prud'hommes, companies can mitigate the risks of contestation and minimize the financial and reputational damage that may result from wrongful dismissal claims.

When dismissing an employee in France, employers must comply with a range of legal obligations and ensure that all necessary documentation is completed and provided to the employee. Failure to meet these requirements can result in significant legal consequences, including penalties or a ruling of wrongful dismissal. French labor law, regulated by the Labour Code, mandates the steps employers must follow to ensure the dismissal is lawful and transparent.

One of the primary legal obligations is the delivery of a dismissal letter. This letter must clearly state the reasons for the dismissal, whether they are based on personal or economic grounds. For example, if an employee is being dismissed due to underperformance, the letter should include specific details, such as missed targets or failure to meet job expectations, rather than vague accusations.

A 2020 ruling by the Conseil de Prud'hommes invalidated a dismissal because the letter did not clearly explain the reasons, resulting in compensation for the employee.

Another critical document is the work certificate (certificat de travail), which employers are legally obligated to provide upon the termination of employment. This certificate outlines the duration of employment, the employee's role, and other pertinent information. Without this certificate, the employee may have difficulty proving their work experience or finding new employment.

Similarly, employers must issue an attestation France Travail that allows the dismissed employee to register with Pôle emploi and claim unemployment benefits. Failing to provide this certificate can not only delay the employee’s access to benefits but also expose the employer to sanctions.

In cases of economic dismissal, additional documentation is required, especially when dismissing multiple employees. Companies undergoing restructuring or financial difficulties must submit a social plan (plan de sauvegarde de l'emploi) if a large number of employees are affected. This plan outlines the steps the company is taking to mitigate the impact of the layoffs, such as offering job training, financial compensation, or relocation assistance.

A notable example is the Air France restructuring in 2020, where a social plan was implemented to support more than 7,500 employees facing layoffs due to the pandemic's impact on the airline industry. The social plan included severance packages, early retirement options, and retraining programs for affected employees.

Employers must also provide a balance of all accounts (solde de tout compte) at the end of the employee's contract. This document summarizes all the payments made to the employee, including salary, unused vacation days, and any severance pay owed. While this document can be signed by the employee as a receipt of full payment, they have the legal right to contest its contents within six months if they believe any payments are missing or incorrect.

In addition to these documents, employers must ensure compliance with collective bargaining agreements (conventions collectives), which may impose additional obligations, such as offering enhanced severance packages or longer notice periods. For instance, the Syntec collective agreement that governs the tech and engineering sectors often provides higher severance pay than what is mandated by the Labour Code.

Finally, the employer must carefully document each step of the dismissal process to protect against potential legal challenges. This includes keeping records of the preliminary interview, any correspondence related to performance issues, and the dismissal letter itself. Failure to maintain these records can weaken the employer’s position if the employee contests the dismissal at the Prud'hommes, potentially resulting in hefty compensation or even reinstatement orders.

By fulfilling all legal obligations and providing the required documentation, employers can reduce the risk of disputes and ensure that the dismissal process complies with French labor law. Proper documentation not only protects the company in the event of a legal challenge but also ensures a smoother transition for the employee, who can access unemployment benefits and pursue new opportunities with the appropriate paperwork.

Jérôme Lecot