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Employee termination
in France.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES French / English

PAYROLL TAX 29.50% – 31.30%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Valid reasons to terminate employment in France

There are two types of valid reasons to terminate an employment in France:

  • Personal grounds. These can include:
    • poor performance or unsatisfactory professional skills;
    • inability to perform the assigned tasks;
    • misconduct within the company.

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.

  • Economic grounds. The Labour Code permits the following main economic grounds for dismissal:
    • economic difficulties facing the relevant business sector at group level within France;
    • technological changes;
    • need to safeguard the company’s competitiveness;
    • business closure.

A fixed-term contract can only be terminated where any of the following occurs:

  • Serious or gross misconduct.
  • An act of God.
  • Mutual agreement.

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 employment in France

Unfair reasons to terminate an employment in France include:

  • For being subject to or standing up to repeated acts of bullying or for having reported such acts;
  • for being subject to or standing up to sexual harassment as defined in the Labor Code, or for reporting sexual harassment ;
  • for reporting discriminatory acts;
  • for bringing legal action on the basis of professional equality between women and men  ;
  • for exercising the employee right to withdraw from a dangerous situation ;
  • due to being called to be a juror ;
  • for refusing, because of their sexual orientation, a work placement in a state criminalizing homosexuality ;
  • for reporting, in good faith, that they are aware of an an offense or a crime being committed as they carry out their work ;
  • for being a “whistle-blower”
  • for reporting in good faith something covered under the Monetary and Financial Code to the Financial Markets Authority or to the Supervisory and Fact-Finding Authority

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.

Dismissal procedure in France

Before the termination of an employment contract in France, an interview with the employee should be held before any decision is made.

 

Resignation procedure in France

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).

Hiring in France, Made Easy

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.

FAQs

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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