How do you terminate an employee in France in 2026?
France owes statutory severance on every non-gross-misconduct dismissal from 8 months of service, with the indemnite de licenciement formula scaling by tenure under Code du travail art. R1234-2, and the barème Macron capping wrongful-dismissal awards at 20 months months' salary from day one of service.
· France guide
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France requires a real and serious cause for any individual dismissal. The law calls this a cause reelle et serieuse. Severance (indemnite legale de licenciement) is owed on every dismissal that is not for gross misconduct. It kicks in once the employee has completed 8 months of service. The rate is a fraction of one month's reference salary per year. The fraction is lower for the first ten years and higher for each year beyond ten. Check the current fractions in art. R1234-2 before you calculate, as sources differ on the precise values (Code du travail).
Six months to under two years: 1 month notice. Two or more years: 2 months notice. No notice is owed for gross misconduct (faute grave) or wilful misconduct (faute lourde).
France caps wrongful-dismissal pay using the barème Macron scale. Any dismissed employee can bring a claim at the Conseil de prud'hommes from day one. There is no qualifying period. The ceiling reaches 20 months of gross salary for employees with twenty-nine or more years of service (Code du travail art. L1235-3).
What grounds justify a dismissal in France?
You must have a real and serious cause to dismiss a permanent-contract (CDI) employee in France. The Code du travail splits grounds into personal reasons and economic reasons. The dismissal procedure is different for each type.
Personal grounds include conduct (faute simple, faute grave, or faute lourde), poor professional performance, and repeated absence. Economic grounds (licenciement economique) cover genuine job elimination, restructuring, technological change, and company closure. Economic grounds only apply if no redeployment option exists.
Personal dismissal (motif personnel)
Conduct-based dismissal requires documented misconduct and a fair procedure. Faute grave (serious misconduct, such as physical violence or theft) cancels the notice period and the statutory severance entitlement. Faute lourde (wilful harm to the company) additionally preserves a civil claim against the employee. Standard misconduct (faute simple) carries the full notice and severance obligations.
Performance-based dismissal requires written warning, a genuine improvement period, and evidence that the deficiency is real and attributable to the employee rather than to organisation or resources.
Economic dismissal (licenciement economique)
The employer must demonstrate economic difficulty, a technological change, a reorganisation necessary for the company's competitiveness, or company closure. Redeployment to all available roles across the group must be offered in writing before the dismissal letter may be issued. Refusal of a redeployment offer does not constitute fault.
Protected categories
Dismissal of employees on maternity leave, those exercising union representative mandates, elected CSE members, and whistleblowers reporting criminal acts or discrimination is a nullite (null and void) dismissal. Null dismissals fall entirely outside the barème Macron compensation scale; courts order reinstatement or award uncapped compensation. Pregnancy and maternity protection runs from conception through four weeks after maternity leave ends.
What procedure must you follow to dismiss an employee in France?
The dismissal procedure in France is strictly step-by-step. Skip or shorten any step and the dismissal can be found to lack real and serious cause. That triggers a barème Macron compensation award at the Conseil de prud'hommes (Code du travail).
The procedure applies from the first day of employment. There is no qualifying period. Any dismissed employee can challenge the dismissal.
The five-step individual dismissal sequence:
- Convocation letter: send the employee a written invitation to a preliminary interview (entretien prealable) by registered post or hand delivery with an acknowledgement receipt. The letter must state the purpose of the meeting and the employee's right to be accompanied by a workplace representative or an approved adviser.
- Preliminary interview: hold the meeting no sooner than five working days after the convocation letter is received. Present the reasons under consideration, listen to the employee's response, and record the discussion.
- Reflection period: after the interview, wait at least two working days before issuing any dismissal letter. This period cannot be waived.
- Dismissal letter: send the dismissal letter by registered post with acknowledgement. The letter must state the precise grounds; grounds stated in the letter are the only grounds the employer may later rely on in tribunal. The notice period begins on the date the employee receives the letter.
- Solde de tout compte and attestation: at the end of the contract (or immediately when notice is waived), provide the final pay receipt (solde de tout compte), the employment certificate (certificat de travail), and the Pole emploi attestation. The solde de tout compte, once signed and not contested within six months, limits future salary-related claims.
For economic dismissals of ten or more employees, the collective procedure runs through the CSE (works council) in parallel; see the collective redundancy section below.
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Send the convocation letter
Dispatch the written invitation to the entretien prealable by registered post or hand-delivered with receipt. The letter must name the purpose and the employee's right to bring an adviser.
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Hold the preliminary interview
Meet the employee no sooner than five working days after receipt of the convocation. Present the reasons under consideration and give the employee a full opportunity to respond.
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Wait the mandatory reflection period
After the interview, observe at least two working days before issuing any dismissal letter. This period cannot be shortened or waived.
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Issue the dismissal letter
Send the letter by registered post with the precise stated grounds. Notice begins on the date the employee receives the letter; only grounds stated in the letter may be relied upon later.
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Deliver the final pay documents
At contract end, provide the solde de tout compte, the certificat de travail, and the Pole emploi attestation. Calculate the statutory severance, notice pay if waived, and accrued holiday, and pay them on the same date the contract closes.
How is statutory severance calculated in France?
Severance (indemnite legale de licenciement) is owed on every dismissal. The only exceptions are faute grave and faute lourde. The employee must have completed at least 8 months of uninterrupted service.
The formula scales with tenure. A fraction of one month's reference salary applies per full year for the first ten years. A higher fraction applies for each year beyond ten. Incomplete years are prorated by month. Check the exact fractions in the current text of art. R1234-2, as sources differ on the precise values (Code du travail art. R1234-2).
| Service band | Statutory severance rate per year |
|---|---|
| 8 months to 10 years | Lower statutory fraction of monthly reference salary (verify art. R1234-2) |
| Beyond 10 years | Higher statutory fraction of monthly reference salary per additional year (verify art. R1234-2) |
The reference salary is the higher of (a) the average gross monthly salary over the twelve months before the dismissal letter, or (b) the average gross monthly salary over the three months before the dismissal letter (with variable elements such as annual bonuses added on a pro-rata basis). The employer must apply whichever calculation gives the employee the higher amount.
No statutory overall cap
Unlike the UK, France does not impose a global ceiling on the indemnite legale. Convention collectives (sector-level collective agreements) frequently set higher severance rates than the statutory minimum; the employer must apply the more favourable of the statutory and CBA rates.
Tax treatment
The statutory portion of severance is fully exempt from income tax. For supra-statutory amounts the exemption is the lesser of twice the annual gross remuneration or fifty percent of the total amount, capped at €288,360 for 2026. Amounts above that ceiling are taxed as salary in the year of receipt.
The indemnite legale de licenciement applies to every non-gross-misconduct dismissal from 8 months of seniority. The statutory formula (art. R1234-2) uses two ascending fractions of the monthly reference salary: a lower rate for the first ten years, a higher rate for each year beyond ten. Convention collectives may improve on these minima; the employer always applies whichever is higher.
Source: Service-Public.fr, Severance pay for employees on permanent contracts
Collective economic redundancy: CSE consultation and the PSE obligation
Dismissing 10 or more employees for economic reasons within 30 days triggers a tiered collective procedure. It requires CSE (Social and Economic Committee) consultation (Code du travail).
In companies with fifty or more employees, CSE consultation deadlines depend on how many redundancies are planned. Sources differ on the exact day counts in force under art. L1233-30. Verify the current deadlines before opening a collective procedure.
| Scope of redundancies (30-day window) | Applicable procedure | CSE opinion deadline |
|---|---|---|
| 2 to 9 employees | Light collective procedure (no PSE) | No fixed statutory deadline |
| 10 to 99 employees (in 50+ employee company) | Full collective procedure, may require PSE | Commonly cited as 2 months (verify art. L1233-30) |
| 100 to 249 employees (in 50+ employee company) | Full collective procedure with PSE | Commonly cited as 3 months (verify art. L1233-30) |
| 250+ employees (in 50+ employee company) | Full collective procedure with PSE | Commonly cited as 4 months (verify art. L1233-30) |
The Plan de Sauvegarde de l'Emploi (PSE)
A PSE (Employment Safeguard Plan) is mandatory when a company with fifty or more employees plans to dismiss 10 or more employees on economic grounds within 30 days. The PSE must include genuine redeployment measures, retraining offers, reduced working-time alternatives where possible, and transitional support. It is negotiated with elected employee representatives or union delegates and validated by the DREETS (regional labour authority). An invalid or absent PSE makes all affected dismissals null and void, with reinstatement or uncapped compensation the remedy.
DREETS notification
The regional DREETS must be notified at the start of the collective consultation process and again once the PSE is agreed or unilaterally set. Dismissal letters may only be sent after the DREETS has validated or homologated the plan. The timeline from CSE first meeting to first dismissal letter is typically four to six months for a major restructuring.
Individual severance on top
Each employee made redundant on economic grounds receives the statutory indemnite de licenciement (or the higher CBA rate), the notice entitlement (or pay in lieu), and accrued holiday pay, regardless of the collective procedure obligations. The two tracks run in parallel.
Rupture conventionnelle: the mutually agreed exit
The rupture conventionnelle is the standard clean exit for CDI contracts in France. Both parties must genuinely agree to it. Neither party can impose it under pressure.
The agreement must be validated by the DREETS (regional labour authority) or submitted online via the TeleRC portal. Validation takes fifteen working days from submission. No response after that period counts as approval.
How it works
Either party proposes the rupture conventionnelle in writing. At least one meeting between employer and employee must take place; the employee may be accompanied by a workplace representative or, if none exists, by a professional adviser from an approved list. The parties then agree the termination date and the compensation amount.
The indemnite de rupture conventionnelle must be at least equal to the statutory dismissal indemnity the employee would receive under art. R1234-2 of the Code du travail, calculated from 8 months of service. Convention collectives may set a higher floor.
Cooling-off period
Both parties have fifteen calendar days after signing the agreement to withdraw. The withdrawal period is not waivable. Once it expires, the employer submits the agreement to DREETS. The contract cannot end before the day after the DREETS validation date.
Why employers prefer it
The rupture conventionnelle gives the employer a validated exit without a contested procedure and without the risk of an unfair-dismissal claim: a signed and validated agreement limits future tribunal claims. The employee retains access to unemployment benefits (ARE) from Pole emploi, which they would lose on a standard resignation. The combination makes it the preferred exit route for mutual departures.
Tax treatment
The indemnite de rupture conventionnelle benefits from the same tax exemption as dismissal severance: the statutory amount is fully exempt; supra-statutory amounts benefit from the same cap up to €288,360 for 2026.
How Teamed runs France terminations
Teamed is your legal employer of record in France. The flat fee is from $599 per employee per month with zero FX mark-up in any currency. Our French partner entity is the legal employer, so the dismissal procedure runs through Teamed's French operations.
We handle the cause documentation, the entretien prealable convocation and timing, the severance calculation, and the solde de tout compte. All of it sits on one platform. Decisions on who to dismiss, why, and on what terms stay with the client.
Real HR and legal experts handle your French hires, from offer letter through every DSN payroll submission. An actual person, not a pooled queue. There is no setup fee and no exit fee, and employer cost passes through at cost, itemised on every invoice.
The split of responsibilities under EOR for France terminations:
| What Teamed handles | What the client decides |
|---|---|
| Drafting and sending the entretien prealable convocation at the correct interval | Whether to dismiss, on what grounds, and on what timeline |
| Timing the statutory reflection period before issuing the dismissal letter | Whether the grounds are conduct, capability, or economic |
| Drafting the dismissal letter with precise stated grounds per the Code du travail | Whether to offer a settlement or rupture conventionnelle instead |
| Calculating statutory severance (indemnite legale or CBA rate, whichever is higher) | Whether to pay enhanced severance above the statutory minimum |
| Preparing the solde de tout compte, certificat de travail, and Pole emploi attestation | Communication strategy with the wider team |
| Coordinating DREETS filings and CSE consultation on collective economic dismissals | The scope and timing of any restructuring plan |
| Rupture conventionnelle drafting and TeleRC submission when that route is chosen | The commercial terms of the agreed exit |
EOR payroll, contractor onboarding, and entity setup all live on one platform. A French contractor who converts to a CDI keeps their record, and that same employee can graduate from EOR to your own French entity without switching systems. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first French hire, until it isn't. Start from the France hiring overview; each guide here takes one layer of French employment law.
Key sources: Legifrance Code du travail, Ministere du Travail, and Service-Public.fr.
Frequently asked questions
Does France require a qualifying period before an employee can claim unfair dismissal?
No. Under Code du travail art. L1235-3, any dismissed employee may bring a claim at the Conseil de prud'hommes regardless of tenure. The barème Macron scale sets the compensation range: employees with under one year of seniority face a ceiling of one month's salary, rising to 20 months at 20 or more years of seniority. Null dismissals (discrimination, maternity, union protection) fall outside the scale entirely and carry uncapped awards.
Who qualifies for statutory severance in France?
Any employee on a CDI (permanent contract) dismissed for reasons other than faute grave or faute lourde, once they have completed at least 8 months of uninterrupted service. The indemnite legale de licenciement rate under Code du travail art. R1234-2 scales by tenure, with a lower fraction of monthly reference salary for the first ten years and a higher fraction for each year beyond ten. Verify the current fractions at the time of dismissal, as sources differ on the precise values.
How much notice must you give a French employee on dismissal?
Statutory minimum notice under Code du travail art. L1234-1 is 1 month for employees with six months to under two years of seniority, and 2 months for employees with two or more years. No notice is owed for faute grave or faute lourde. Convention collectives frequently extend these periods; the CBA rate applies if higher than the statutory minimum. Employee resignation notice is set by the applicable CBA, not a fixed statutory figure.
What is the rupture conventionnelle and when should you use it?
The rupture conventionnelle is a mutually agreed termination of a CDI, validated by the DREETS (regional labour authority). It requires genuine mutual consent, at least one meeting, a fifteen-day cooling-off period for both parties, and compensation at least equal to the statutory severance calculated under art. R1234-2 of the Code du travail, from 8 months of service. It suits mutual departures because it limits future tribunal claims and preserves the employee's access to unemployment benefits.
When does the collective redundancy procedure apply in France?
Dismissing 10 or more employees for economic reasons within 30 days triggers the collective procedure and, in companies with fifty or more employees, a mandatory Plan de Sauvegarde de l'Emploi (PSE). Consultation deadlines for the CSE are tiered by redundancy volume under art. L1233-30 of the Code du travail. Dismissal letters cannot be sent until the DREETS validates the PSE.
The most common France termination mistake we see is treating the preliminary interview as a formality. The entretien prealable is a procedural gate, not a conversation. Miss the five-day waiting period, send the dismissal letter a day early, or omit the companionship rights, and a technically valid ground becomes a procedurally flawed dismissal at the Conseil de prud'hommes.
France's barème Macron means every dismissed employee can bring a wrongful-dismissal claim from day one of service, with awards scaling up to 20 months months' salary at the top of the scale.
Severance is owed from 8 months in, on every non-gross-misconduct exit, before a tribunal decision enters the picture.
The cost of a French termination is not a contingency. It is a formula.
