If there is one area where foreign employers get caught in France, it is dismissal. Coming from an at-will system, the instinct is: decide, notify, done. In France that instinct is a liability. Every dismissal must have a valid reason and follow a strict procedure — get either wrong and you owe damages, whatever the underlying merits.
Here is what a foreign employer needs to understand before ending a contract in France.
There is no at-will dismissal
You cannot dismiss “for any reason or no reason.” Every dismissal requires a real and serious cause (cause réelle et sérieuse) — a reason that is genuine, precise and serious enough to justify the decision. Two broad families exist:
- Personal grounds (motif personnel) — disciplinary (misconduct: faute simple, faute grave, faute lourde) or non-disciplinary (e.g. professional inadequacy, medical unfitness).
- Economic grounds (motif économique) — driven by the company’s situation, not the person. These carry heavy extra obligations (redeployment, selection criteria, and a full PSE social plan for larger collective redundancies).
The procedure is mandatory — and its own source of liability
Even with a perfect reason, skipping steps is sanctioned. For a personal-grounds dismissal, the core sequence is:
- Invitation to a preliminary meeting (convocation à l’entretien préalable) — a formal letter, with a minimum notice before the meeting.
- The preliminary meeting (entretien préalable) — you explain the contemplated decision; the employee may be assisted.
- Notification — a reasoned dismissal letter sent by registered mail, respecting the minimum delay after the meeting. The letter fixes the grounds — you cannot expand them later before a court.
Disciplinary dismissals also run against strict time limits (roughly two months to act once the employer knows the facts).
Notice and severance
- Notice (préavis) — a statutory minimum by seniority, often extended by the convention collective; not owed in cases of faute grave or faute lourde.
- Severance (indemnité de licenciement) — the statutory indemnity is generally due from 8 months’ seniority (a fraction of a month’s pay per year of service, increasing with seniority); the convention collective may provide more. Not owed for faute grave/lourde.
The Barème Macron caps unfair-dismissal damages
If a court finds the dismissal had no cause réelle et sérieuse, it awards damages within a scale set by seniority — the Barème Macron (Article L.1235-3). The cap gives some predictability, but procedural and discrimination breaches carry their own, separate exposure — sometimes uncapped.
The pitfalls that cost foreign employers the most
- Treating dismissal as a decision, not a procedure — the single biggest source of claims.
- A vague or shifting reason — the letter must state precise grounds; you are bound by them.
- No documentation — misconduct or inadequacy must be evidenced, not asserted.
- Ignoring the convention collective — it often lengthens notice and increases severance.
- Mishandling protected employees (staff representatives, employees on medical leave, pregnancy) — special protections apply and errors can void the dismissal.
Frequently asked questions
Can I dismiss during or just after the trial period? The trial period is more flexible, but not unlimited — the reason must relate to professional skills and notice rules apply. After it, full dismissal law applies.
Do I always owe severance? Generally from 8 months’ seniority, unless the dismissal is for faute grave or faute lourde.
How much is an unfair dismissal? Within the Barème Macron scale by seniority — but procedural or discrimination flaws can add separate liability.
Before you dismiss anyone in France — talk to a French employment lawyer
In France, a weak reason or a skipped step costs the same as an unjustified dismissal. A short review of the grounds and the procedure before you act is the cheapest insurance you will buy.
DAIRIA Law advises international employers on dismissals and French employment law, in your language. Book a free 30-minute consultation — or ask DAIRIA AI your first question instantly.
This article is general information on French employment law as of 2026, not legal advice on a specific situation.