A Practical HR Guide For Employee Termination in France
Your up-to-date guide for employee termination in France in a fair, legal and practical manner for international HR leaders and business owners.
Terminating an employee in France is rarely a straightforward decision. Unlike in the United States, where “at-will” employment allows employers to end contracts with relatively little justification, or the United Kingdom, where dismissal rules are more flexible, France takes a far stricter approach.
French labour law is designed to protect employees at almost every stage of the process. This means that dismissals must be carefully justified, procedurally correct, and backed by clear documentation.
For international employers, especially those used to more flexible systems, like in the USA or in Asia, these rules can feel complex. Ranging from mandatory preliminary interviews and strict notice periods to detailed severance calculations. Missteps don’t just risk fines or court claims; they can also damage your company’s reputation and employee trust.
This guide explains how termination works in France, and everything you need to know about it. Whether you are managing a small team or overseeing large operations, understanding these rules will help you avoid costly mistakes and ensure that any termination is handled fairly and legally.
What Grounds Justify Termination?
In France, “termination without cause” simply doesn’t exist. Every dismissal must be backed by a legitimate reason, clearly explained to the employee and documented in writing. French labour courts place the burden of proof on the employer, so vague or poorly justified grounds can quickly be overturned.
Broadly there are three main routes an employment relationship can end:
a) Personal Grounds
These relate to the employee’s individual performance, behaviour, or ability to carry out the role. Examples include:
- Simple fault (faute simple): Negligence, repeated lateness, or mistakes. Dismissal is possible, but the employee still receives notice and severance.
- Serious misconduct (faute grave): More severe breaches such as insubordination or harassment. The employee loses notice and severance rights.
- Gross misconduct (faute lourde): Acts that deliberately harm the employer (e.g. fraud, theft, or sabotage). Termination is immediate, with no notice or benefits.
b) Economic Grounds
Here, the reason lies with the company, not the individual. This may include financial difficulties, restructuring, technological change, or business closure. Employers must first explore redeployment options within the company before considering dismissal, and larger restructurings may trigger collective redundancy procedures. Valid reasons may include:
- Economic difficulties impacting the company or sector
- Technological changes or business reorganisation
- Cessation of business activity
c) Mutual Agreement
Known as ‘rupture conventionnelle’, this process allows both employer and employee to end the contract amicably. It requires a written agreement, cooling-off period, and approval by the labour authorities (DREETS – Directions régionales de l’économie, de l’emploi, du travail et des solidarités). While more flexible, it still comes with strict formalities to protect the employee’s rights.
In short: France doesn’t allow “quick exits.” Whether the issue is performance, economic necessity, or mutual consent, the law demands that employers follow a structured and transparent process.
Step by step termination procedure for individual employees in France
French labour law requires employers to follow a highly structured dismissal procedure. Skipping or mishandling even one step can render the termination invalid and expose the employer to reinstatement claims, damages, or fines. Unlike in the UK or the US, where “at-will” dismissal or shorter procedures may apply, France treats termination as a last resort, requiring both procedural fairness and written justification.
Here’s how the process works in practice:
Step 1: Invitation to a Preliminary Interview (Convocation à l’entretien préalable)
Before any dismissal decision is made, the employer must invite the employee to a pre-dismissal meeting.
- The invitation must be sent by registered mail (LRAR) or delivered in person with acknowledgment of receipt.
- It should clearly state:
- the purpose of the meeting,
- the potential for dismissal, and
- the employee’s right to be assisted by a staff representative or external adviser (Articles L1232-2 and R1232-1 of the French Labour Code).
- The meeting cannot be held until at least 5 working days after the employee receives the letter.
This step ensures the employee has time to prepare their defence and reflects the French principle of “contradictoire” (both sides must be heard).
If the invitation to the preliminary interview is skipped or not properly delivered, the dismissal may automatically be deemed procedurally unfair. Even if the employer had valid grounds, French labour courts can award the employee compensation, often up to one month’s salary, simply because due process was not respected.
Step 2: The Preliminary Interview (Entretien préalable)
During the meeting:
The employer outlines the reasons for considering termination.
The employee has the chance to respond, present evidence, or propose alternatives (redeployment, training, etc.).
No decision can be finalised at this stage. The meeting is a mandatory consultation, not a dismissal announcement.
This safeguards transparency and shows that the employer considered the employee’s input before deciding.
If the interview itself is not held, the employer deprives the employee of their right to be heard. This can result in the dismissal being invalidated and damages being awarded for failure to respect the employee’s procedural rights, regardless of whether the underlying reasons for termination were legitimate.
Step 3: Sending the Dismissal Letter (Lettre de licenciement)
If the employer decides to proceed, a dismissal letter must be sent by registered post no sooner than two working days after the interview (Article L1232-6 of the Labour Code).
- The letter must state the precise and verifiable reasons for dismissal. Vague wording like “unsatisfactory performance” is insufficient; the employer must reference specific facts, dates, or events.
- The dismissal only becomes effective upon receipt of this letter, not during the interview.
This written justification is crucial: if challenged, French labour courts (Conseils de prud’hommes) will review whether the reasons were “réelle et sérieuse” (genuine and serious).
If the dismissal letter is vague, missing, or sent outside the prescribed timeline, the dismissal is treated as lacking a “real and serious cause.” In such cases, courts may order the employee’s reinstatement or grant substantial compensation, which can range from three to twenty months of salary depending on seniority and company size.
Step 4: Notice Period and Termination Date
Most employees are entitled to a notice period, which varies based on seniority and applicable collective bargaining agreements (CBA). Typical minimums are:
- 1 month for 6 months to 2 years of service,
- 2 months for over 2 years, unless dismissed for serious or gross misconduct. The notice period begins after the employee receives the dismissal letter.
If the required notice period is ignored, the employer is still obliged to pay compensation in lieu of notice. Failure to do so typically results in claims before the labour courts, and the company can be ordered to pay not only the missed compensation but also additional damages.
Step 5: Settlement of Final Payments
On or before the last working day, the employer must provide:
- Final payslip,
- Certificate of employment (Certificat de travail),
- Unemployment insurance certificate (Attestation Pôle emploi),
- Receipt for full and final settlement (Solde de tout compte),
- Portability of Mutuelle & Prévoyance.
Failure to issue these can delay unemployment benefits for the employee and expose the employer to penalties.
If the employer fails to provide final settlement documents and payments, such as the employment certificate, unemployment benefits attestation, or severance, this can create further liability. Employees may be unable to claim unemployment benefits on time, giving rise to damages, and employers may also face statutory fines of up to €750 per missing document.
Under Articles L911-1 to L911-8 of the French Social Security Code, former employees may continue to benefit from employer-sponsored complementary health insurance (mutuelle) and income protection plans (prévoyance) for a limited period—usually corresponding to their notice or unemployment benefits duration. Missing this could leave departing employees unaware of potential continued coverage, and could expose employers to claims or administrative issues
Collective Redundancies/Dismissals
When redundancies affect several employees at once, French law applies stricter rules to ensure fairness and employee protection. Employers cannot simply announce a round of layoffs; they must follow a structured process that varies depending on the size of the company and the number of redundancies planned.
General Rules
If redundancies are needed, employers must:
Use objective criteria (such as skills, qualifications, family responsibilities, or length of service) when deciding the order of dismissals.
Look for redeployment options within the company or group in France before letting people go.
Inform the labour authorities about the redundancy project.
Skipping these steps can result in the dismissals being ruled unfair by a labour court.
Fewer Than 10 Redundancies
If fewer than 10 employees are made redundant within 30 days:
The employer must consult the Social and Economic Committee (CSE). If no CSE exists (CSE is mandatory from 11 employees onwards (averaged over 12 consecutive months).If the company has 10 or fewer employees, there is no legal obligation to have a CSE, though some employers voluntarily set one up), the process involves directly informing employees and notifying the authorities. Most companies are required to have a CSE beyond their 10th hire, however, certain firms with 10 or fewer employees might still opt for a CSE voluntarily.
Each employee must be invited to a preliminary meeting to explain the economic reasons and discuss redeployment options, such as the Contrat de Sécurisation Professionnelle (CSP) or redeployment leave, depending on company size.
The authorities must be notified of the dismissals within 8 days of sending the letters.
At Least 10 Redundancies
When 10 or more employees are affected in a 30-day period, the procedure depends on company size.
a) Companies With 50 or More Employees
Larger employers must prepare a Job Preservation Plan (Plan de Sauvegarde de l’Emploi – PSE). This plan outlines concrete steps to avoid or reduce redundancies—such as retraining, reducing working hours, or redeploying staff to other roles in France.
The PSE can be agreed with trade unions or imposed by the employer, but in both cases, it must be approved by the labour administration (DREETS). The CSE must also be consulted, and at least two meetings are required, spaced over a minimum of 15 days. The consultation period varies by scale:
- Up to 2 months for fewer than 100 redundancies.
- Up to 3 months for 100–250 redundancies.
- Up to 4 months for more than 250 redundancies.
Once validated, the PSE must be followed before any dismissal notices are issued.
b) Companies With Fewer Than 50 Employees
Smaller businesses also have consultation duties. They must present an economic note to the CSE (if one exists) and explain the reasons for redundancies along with support measures. Labour authorities then review the process and confirm whether the employer has complied before dismissals can proceed.
Special Protections
Under French labour law, certain employees are classified as “protected” and cannot be dismissed under the usual procedures. In redundancy or collective layoff situations, their employment may only be terminated under strict conditions, and in some cases, only with prior approval from the labour authorities. These groups include:
- Employees on maternity leave – dismissal is prohibited during the entire leave period. A mutually agreed termination remains possible. Collective redundancies do not override this protection.
- Pregnant employees and those returning from maternity or paternity leave (within 10 weeks of return) – dismissal is only possible in cases of gross misconduct or if it is objectively impossible to maintain the role (e.g. complete closure of the company). This safeguard continues to apply even in collective redundancy cases.
- Employees on sick leave due to a work accident or occupational illness – may only be dismissed for serious misconduct or if the job cannot be maintained for objective reasons. This protection also applies in redundancy situations.
- Elected staff representatives and union officials – dismissal always requires prior authorisation from the Labour Inspectorate (DREETS), including during collective redundancy exercises. Without this approval, the dismissal is automatically void.
Notice Periods in France
In France, the principle of préavis (notice period) is designed to protect employees from sudden loss of income while giving both parties time to prepare for separation. Unlike in countries such as the United States, where “at-will” employment allows termination without advance notice, French law requires employers to respect statutory notice periods unless the dismissal is for serious or gross misconduct (faute grave or faute lourde).
For most employees, the length of the notice period depends on seniority. Those with at least six months but fewer than two years of service are entitled to one month’s notice. Employees with more than two years of service must be given two months’ notice. For senior executives (cadres), employment contracts and collective bargaining agreements often stipulate longer periods, sometimes extending up to three months or more. These provisions are supported by Article L1234-1 of the French Labour Code.
During the notice period, employees are entitled to continue working and to receive their full salary and benefits. Employers may also release an employee from their duties, but in such cases, they must provide compensation in lieu of notice (indemnité compensatrice de préavis). This ensures that the employee does not suffer financial loss even if they are not required to remain at work.
Notice periods can occasionally be adjusted by mutual agreement or through specific provisions in a collective bargaining agreement. However, employers cannot unilaterally shorten them without risking claims before the Conseil de prud’hommes (labour court). Skipping or miscalculating notice obligations typically results in mandatory payouts and, in some cases, additional damages if the employee can prove financial or career-related harm.
Severance Pay Guidelines
Severance pay (indemnité de licenciement) is one of the most scrutinised aspects of employee termination in France. Unlike in some countries where severance is a discretionary benefit, in France it is a legal entitlement under Article L1234-9 of the French Labour Code for any employee with at least eight months of continuous service.
The statutory formula is straightforward but highly protective:
- ¼ month’s salary per year of service for the first 10 years
- 1⁄3 month’s salary for each additional year beyond the first 10 years
The applicable Collective Bargaining agreement provides the exact severance entitlement which vary from one CBA to another.
The calculation is usually based on the higher of either the employee’s last three months of salary or their average over the past 12 months, which can significantly increase the amount owed if recent bonuses or overtime were substantial.
However, statutory severance is often just the floor. Collective bargaining agreements, which are very common in France, may provide for more generous payouts. Employers must carefully review both the Labour Code and any applicable agreements to avoid underpayment, as even a small shortfall can lead to litigation.
In cases of wrongful or unfair dismissal (licenciement sans cause réelle et sérieuse), the stakes are even higher. The Conseil de prud’hommes (labour courts) may order damages on top of statutory severance. Depending on the employee’s length of service and the size of the company, these damages can range from a few months’ salary to a maximum of 20 months’ salary under the so-called Macron scale introduced in 2017.
Failure to comply not only exposes employers to legal claims but also risks reputational damage, particularly in France where employee rights are strongly defended both socially and legally. Severance, therefore, isn’t just a financial calculation, it’s a compliance obligation that can materially affect the outcome of a termination.
Employee Protections & Final Documents
Ending the employment relationship in France does not stop at giving notice or paying severance. The law requires employers to hand over several official documents to ensure the employee can transition smoothly. Each of these documents carries legal weight, and missing or mishandling them can expose the employer to disputes or penalties.
First, the work certificate (certificat de travail) must be provided to every departing employee, regardless of the reason for leaving. This document summarises the employee’s start and end dates, roles, and nature of the employment. It is critical because former employees use it when applying for new jobs to prove their work history. If it’s incomplete or delayed, the employer may face damages claims for obstructing the employee’s ability to find future work.
Second, the unemployment insurance certificate (attestation Pôle emploi) is essential for the employee to claim unemployment benefits. The employer is legally obligated to provide this certificate immediately upon termination. Without it, employees cannot access benefits, and the employer risks administrative fines and potential liability for losses caused by the delay.
Third, the final pay statement (solde de tout compte) is a settlement slip that outlines all sums paid to the employee at the end of employment such as salary, accrued vacation, severance, and bonuses if applicable. While employees can contest this document within six months, if the employer omits certain amounts, it can result in back pay claims and additional penalties.
If a non-compete clause exists in the employment contract, the employer must either pay the stipulated compensation (often a percentage of the employee’s salary during the restriction period) or formally waive the clause in writing within the legally prescribed time. Failing to do so can result in the clause being unenforceable and potentially costly litigation.
Finally, health insurance continuity is another overlooked area. Under French law, employees are entitled to maintain their company health coverage for a limited time (portabilité de la mutuelle), provided certain conditions are met. Employers must clearly inform employees of this right in writing, or they may be held liable for medical costs that would have otherwise been covered.
In short, these exit documents are not administrative formalities, they are legally enforceable safeguards designed to protect employees. Employers who treat them lightly risk extending the employment relationship into the courtroom long after the last working day.
Contested Dismissals & Legal Remedies
In France, termination does not always end with the last working day. If an employee believes the dismissal lacked a valid reason or was carried out incorrectly, they can contest it before the Conseil de prud’hommes (labour court). This is a common step. France is known for a high volume of employment disputes compared to countries like the UK or US, where “at-will” termination limits such challenges.
The courts examine both substance and procedure. A dismissal may be judged unfair (licenciement sans cause réelle et sérieuse) if the employer cannot prove a genuine personal or economic ground, or if the documentation is too vague. Equally, even when a valid reason exists, skipping procedural steps, like not holding the preliminary meeting or failing to provide a proper dismissal letter, can render the termination invalid.
The potential consequences are significant. Depending on the employee’s tenure and the size of the company, courts can:
- Order reinstatement, forcing the employer to take the employee back (though this is rare in practice).
- Award compensation, which can range from a few months to over a year’s salary depending on circumstances. The 2017 Macron reforms introduced a compensation scale (barème Macron), generally capping damages between 1 and 20 months’ salary based on seniority. However, some courts still allow exceptions, particularly in cases of discrimination, harassment, or breaches of fundamental rights, where damages can exceed these limits.
Employers should also note that wrongful dismissal findings carry more than financial costs. A contested case can harm the company’s reputation, stall restructuring efforts, and negatively impact employee morale if colleagues see dismissals overturned.
In short, employers who underestimate the importance of process or assume a weak dismissal will “stick” often find themselves entangled in costly litigation. The lesson: in France, firing badly is usually far more expensive than not firing at all.
How Beyond Borders HR Can Help
In France, termination is less about “letting someone go” and more about managing a tightly regulated legal process. Each step from the preliminary interview to the dismissal letter and severance calculation requires accuracy, documentation, and strict adherence to timelines.
Missing even a single detail can expose your company to court challenges, heavy financial penalties, or long disputes before the Prud’hommes.
That’s where Beyond Borders HR comes in. We help international businesses:
- Assess the grounds for dismissal to ensure they meet the French legal standards.
- Prepare compliant documentation so that interviews, letters, and notices stand up in court if challenged.
- Calculate severance and benefits for fair and compliant payouts.
- Avoid hidden risks, from data protection obligations to non-compete compensation.
- Explore safer alternatives, such as mutual termination agreements (rupture conventionnelle) that reduce the risk of disputes.
By combining deep local expertise with cross-border HR experience, we give employers the confidence to handle dismissals in France without jeopardising compliance or workplace culture.
Because in France, the difference between a smooth exit and a courtroom battle is all in the process.
Need help handling French dismissals with confidence? Chat to Beyond Borders HR for expert guidance.
