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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES French / English
PAYROLL TAX 29.50% – 31.30%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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France
There are two types of valid reasons to terminate an employment in France:
An employee’s repeated absence or absence over a long period of time (which is not related to a work-related accident or illness) can also constitute, in certain circumstances, valid grounds for dismissal.
A fixed-term contract can only be terminated where any of the following occurs:
In addition, an employee can terminate a fixed-term contract unilaterally if another employer offers that employee an indefinite-term employment contract.
Termination of employment can also be made for medical inability due to an occupational accident or disease. Automatic termination occurs on the death or imprisonment of an employee and, in the case of a fixed-term contract, at the end of the contract.
Unfair reasons to terminate an employment in France include:
In addition, during pregnancy, maternity leave and the following ten weeks, employees have specific protection against dismissal. Dismissal cannot take effect or be served on an employee during the duration of maternity/paternity leave.
Before the termination of an employment contract in France, an interview with the employee should be held before any decision is made.
Employees on a permanent contract may terminate the contractual relationship with their employer without explaining their reasons. If they decide to terminate the employment contract on their own initiative, it is considered a resignation.
While there is no specific mandatory procedure, employees should notify their employer either in writing or in person. It must be clear that the employee wishes to resign – the employer cannot simply assume so based on the employee’s behavior.
It is common for resigning employees to send a letter of resignation to their employer. The employer then acknowledges receipt of the resignation letter and sets out the terms and conditions of the contract termination in a letter to the employee (including details such as notice period, documents to be provided at the end of the contract, etc.).
Before leaving the company, the employee must observe a notice period. This notice period may be provided for in the collective agreement applicable to the company, or in the employment contract (where it may be shorter than that stipulated in the collective agreement).
Your business can easily hire employees in France without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
Terminations and severance in France can be very complex and depend on many different factors. If an employer needs to terminate an employee, there must be valid and legal grounds for the termination.
In cases of unfair dismissal, a judge may propose the reinstatement of the employee in the company, with the continuation of their acquired benefits. If either party refuses reinstatement, the judge will grant the employee compensation payable by the employer. The amount of compensation is fixed according to minimum and maximum amounts set out by the Labor Code which vary depending on the number of people the company employs and the number of years the employee has worked in the company.
Any dismissal can be challenged before an industrial tribunal, with the risk, should the judge find in favor of the employee, that a company must pay compensation. You can mitigate the risks of termination by partnering with a firm like Horizons. We have employment experts on the ground in France and can advise you on best practices in cases of employment termination.
At Horizons, our experts on French employment can take care of everything for you, helping you to stay compliant and keep negotiations as straightforward as possible.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ France PEO can mitigate risk for foreign companies and provide guidance through this process.
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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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