Dismissal on personal grounds
Date of update
Dismissal on personal grounds is different to dismissal on economic grounds because it is related to the employee themselves.
An employer has the right to discipline an employee in the event of misconduct. Any disciplinary action taken must be proportionate to the severity of the fault committed. Indeed, such a sanction is likely to affect the employee’s presence in the company, his position, his career or his remuneration.
Good to know: Dismissal for personal reason is not the only possible disciplinary sanction for the wrongful conduct of an employee. In companies with at least 50 employees, internal regulations are mandatory. This sets the rules, nature, and scale of sanctions. For more information, please refer to our factsheet.
Grounds for dismissal
All dismissals must be justified by a clear and objective reason of sufficient gravity: a genuine and serious cause that prevents the continuation of the employment relationship.
Personal grounds for dismissal may thus include:
- Disciplinary grounds arising from wrongful behavior by the employee (ordinary misconduct, serious misconduct or gross misconduct).
- Non-disciplinary grounds arising from the employee’s inadequate performance or incompetence, repeated or prolonged absences, etc.
Disciplinary grounds
The employer may consider that the behavior of one of its employees (failure to comply with disciplinary rules or with the duty of discretion and loyalty, criticism, insults, violence, errors or negligence committed in the course of their duties) is inconsistent with the normal performance of the employment contract and constitutes professional misconduct.
The misconduct can be ordinary, serious or gross.
Minor misconduct (“Faute simple”)
Minor misconduct refers to an employee’s behaviour contrary to his obligations towards the employer. While the misconduct is real, it is not severe enough to require immediate termination of the employment contract.
Serious misconduct (“Faute grave”)
Serious misconduct involves behavior by an employee contrary to his or her obligations towards the employer, with sufficient seriousness to impose an immediate termination of the employment contract even for the duration of the notice period with a preventive suspension.
Gross misconduct (“Faute lourde”)
Gross misconduct is an exceptionally severe violation revealing an intention to harm the employer, which makes it impossible for the employee to remain in the company, even for the duration of the notice period and requires a preventive suspension.
Non-disciplinary grounds
Dismissal on personal grounds may also be based on non-disciplinary reasons, such as professional incompetence or inadequate performance, repeated or prolonged absences owing to health or other non-work-related issues, refusal to amend an employment contract, etc.
Nonetheless, there must be a genuine and serious cause that makes it impossible to continue the employment contract.
Prohibited grounds
- Discriminatory (dismissal based on gender, age, disability, etc.)
- In violation of fundamental freedom (right to strike, freedom of expression, etc.)
- In violation of protection linked to maternity or paternity
- In violation of protection linked to work accidents and occupational illnesses
- In violation of the protection granted to certain employees
- In violation of the protection linked to the death of a child under 25 years old
- In violation of the protection linked to the death of an effective and permanent dependent under the age of 25.
- For having reported, witnessed or been the victim of moral or sexual harassment
- For having related or testified, in good faith, to facts constituting an offense or a crime
Procedure
Key steps
Step 1: Letter of invitation to a pre-dismissal interview.
Step 2: Five working days (minimum) after receipt: interview with the employee to hear his or her explanation.
Step 3: Two working days (minimum) and one month maximum after the interview: letter of dismissal.
Templates provided by the Ministry for Labor
To ensure greater legal certainty and reduce litigation risks, the Ministry for Labor has provided companies with standard letters of invitation to a preliminary interview and standard letters of dismissal, which the employer can adapt according to the employee’s individual circumstances and the applicable agreements and contracts.
- Letter of invitation to a preliminary interview:
- Letter of dismissal on personal grounds:
- Sample letter of dismissal on personal disciplinary grounds (serious or gross misconduct) (Appendix I).
- Sample letter of dismissal on personal non-disciplinary grounds (Appendix III).
Disputing dismissal
The employee may ask the employer for further clarification regarding the grounds for dismissal set out in the letter, within 15 days of receiving it.
This request may be made by registered letter with acknowledgement of receipt, or be delivered by hand with receipt.
After receiving the employee’s request, the employer has a period of 15 days to provide further clarification if it so wishes. To do so, the employer must follow the same procedure.
The employee also has a period of 12 months to contest his dismissal with the industrial tribunal (CPH).
Before the Industrial Tribunal, the judge may pronounce:
- The irregularity of the dismissal (non-compliance with the procedure)
- Lack of justification for dismissal (dismissal without real and serious cause)
- The nullity of the dismissal (dismissal for prohibited reasons)
Termination payments
When the employment contract is terminated, the employer may be required to pay the redundant employee severance pay, compensation in lieu of outstanding paid leave entitlements, and compensation in lieu of notice (if the notice requirement is waived).
Severance pay for permanent employees
Permanent employees are entitled to severance pay if certain conditions are met. Severance pay is due to permanent employees who have been dismissed on personal grounds, except in the event of gross or serious misconduct.
It will be calculated based on the employee’s gross salary (from eight consecutive months of service, except in the event of gross or serious misconduct), and will amount to:
- At least a quarter of a month’s salary per year of service for the first ten years.
- Then a third of a month’s salary per year from the 11th year. A different method of calculation may be used, which is more advantageous for the employee, according to the provisions set out in the collective agreement or the employment contract, or the practices in force in the company.
The collective agreement applicable to the company may provide for a different method of calculating severance pay. In this case, the company must use the method most favorable to the employee.
Compensation in lieu of notices
Compensation in lieu of notice is paid when the employee has not served the notice period given to them upon dismissal.
It is not due if the employee has asked to waive the notice requirement, if the employer agrees to waive the notice requirement for an employee who has resigned, if the employee has been dismissed for gross or serious misconduct, or if there is no notice period owing to the circumstances of the dismissal.
The amount will depend on the length of notice not served and on the salary that the employee would have received had they worked through the notice period.
Compensation in lieu of paid leave
Compensation in lieu of paid leave is due when, on the date of termination of their contract, an employee has not taken all the paid leave to which they were entitled.
It is due even in the event of dismissal for gross misconduct, retirement, resignation and termination of the employment contract during the trial period.
To calculate the amount due, several factors must be considered:
- Basic salary and salary increase.
- The salary the employee would have received had they not been on maternity leave, paternity leave or sick leave following a workplace accident, for example.
- Holiday pay for the previous year.
- Seniority bonus, monthly attendance bonus and on-call bonus.
- Expatriation bonus.
- Benefits in kind (accommodation, company car, etc.).
However, the end-of-year bonus, the incentive bonus, the profit-sharing bonus, professional expenses and the 13th month’s pay are not considered when calculating the due amount of compensation in lieu of paid leave.
Important to know:
- In the event of serious misconduct or gross negligence, the employee is not entitled to severance pay or compensation in lieu of notice. The employee does, however, receive compensation for paid vacations, if eligible.
- In the event of litigation, if the employee is not reinstated, the employer will also receive compensation.
- Dismissal without real and serious cause: compensation based on the scale established by the 2017 ordinance.
- Invalid dismissal: compensation at least equal to 6 months’ salary
- Irregular dismissal: compensation equal to 1 month’s salary
Access to simulator
Simulateur – Calcul de l’indemnité de licenciement – Code du travail numérique
Click here – simulator in case of dismissal without real and serious cause
Unemployment
Redundant employees may be eligible for unemployment benefits, provided they meet all the necessary criteria.
The back-to-work allowance (Allocation de retour à l’emploi – ARE) is an income maintenance benefit provided by France Travail under certain conditions. It is intended for registered job seekers who are out of work through no fault of their own. Payments will cease if the redundant employee returns to paid employment.
Eligibility and compensation rules will depend on the type of employee concerned. Both private and former public-sector employees must be out of work through no fault of their own, and must provide evidence of a minimum period of employment on the contract termination date.
The eligibility criteria have changed since February, 2023 and now depend on the age of the person in question.
You will find details of the eligibility criteria applicable to private-sector employees on the public service’s website here; those applicable to former public-sector employees can be found here.
Calculate how much back-to-work allowance (ARE) you are entitled to
Impact on right of residence
All nationals of non-EU and non-EEA countries – except forSwitzerland– who wish to live and work in France for more than three months must have a residence permit.
Where a foreign employee is considered to have lost their job through no fault of their own, their situation will depend on the type of residence permit they have.
Holders of a residence permit authorizing the exercise of any professional activity
The residency rights of persons whose residence permit authorizes them to engage in any professional activity will not be affected by the termination of their employment contract. This includes persons with a temporary or multi-year “private and family life” residence permit, a “family member of a European national” resident permit, a permanent residence permit, a “Talent family” status, etc.
Holders of a temporary residence permit for employees
- If the employees finds a job before their residence permit renewal date, their new employer must apply for a work permit via Étrangers en France | Accueil (interieur.gouv.fr) website.
- If they are unable to find a job before their residence permit renewal date: In the event of involuntary termination of the employment contract, and on presentation of the France travail declaration established by the employer upon termination, the residence permit will be extended for one year.
Holders of a multi-year “employee” residence permit are allowed to engage in any salaried employment, if they possess a work authorization. If there is a change of employment, the employer must apply for a new work authorization. For more information, please refer to our dedicated work permit fact sheet
Holders of a “Talent ” multi-year residence permit
If the employee finds a job before their residence permit renewal date:
- If the new job matches the conditions of the previous residence permit (such as contract type, salary, profile, etc.), no additional steps are required from the employee. However, the employer must request the residence permit authentication at least two days before the employee starts the new job.
- If the conditions for the residence permit are no longer met, it will be necessary to apply for a change of status with the Prefecture to ensure the residence permit aligns with the individual’s new situation.
If they are unable to find a job before their residence permit renewal date :
Then the holder no longer meets the requirements for the residence permit, it will not be renewed. However, if the resignation is considered legitimate and the individual qualifies for unemployment benefits, the residence permit may be renewed for the duration of the unemployment benefit period.
For the renewal of their residence permit, the following documents should be provided to the Prefecture:
- The employer’s certificate intended for France Travail
- The certificate from the unemployment benefits agency indicating the remaining period of coverage