Termination Process
In France, there are two types of dismissal:
Employee reasons include:
- Misconduct
- Disciplinary
- Incompetence
Economic reasons include:
- Discontinuation of operations
- Change of the employee's job responsibilities
- Changes in technology
- Restructuring of the operation
The notice provided by the employer depends on the employee's seniority, length of service, and from the date of presentation. In specific cases, the notice period can be suspended or postponed.
Severance Pay
Severance is paid to employees with an indefinite-term contract, according to the CBA agreement (collective bargaining agreement), and a minimum of 8 months of service. Severance pay is calculated on the employee's average salary in the last 12 months and may include the basic salary and bonuses.
When a CBA is not in place, or the severance rate is lower than the statutory severance rate, a severance payment may be received equal to one quarter of the monthly salary for each year of the first ten years of service. Employee contacts may include severance payments if they are higher than the CBA agreement or the statutory rate. In specific cases, such as the company director's severance payment, approval must be received by the business' corporate governance committee.
