Macron Scale: Compensation Caps for Employment Disputes and Challenges in 2025
Introduction: The Macron Scale, an Essential Framework for Employment Litigation
Established by the Macron ordinances of September 22, 2017, and codified in Article L.1235-3 of the French Labour Code, the compensation scale for dismissals without real and serious cause represents one of the most significant reforms in French labor law over the past decade. By setting minimums and maximums for prud’homale (employment tribunal) compensation based on employee seniority and company size, this scale has profoundly altered the approach to dismissal litigation.
After years of judicial challenge, the Court of Cassation definitively validated the scale’s compliance on May 11, 2022, ending the resistance from certain employment tribunals. In 2025, the scale is applied robustly, but its exceptions, case law, and calculation methods warrant thorough analysis for HR professionals and payroll managers.
The Complete Scale: Minimum and Maximum Compensation
For Companies with 11 or More Employees
The scale establishes minimum (planchers) and maximum (plafonds) compensation expressed in months of gross salary, based on the employee’s length of service in the company at the time of contract termination:
| Length of Service (complete years) | Minimum Compensation (months) | Maximum Compensation (months) |
|---|---|---|
| 0 | None | 1 |
| 1 | 1 | 2 |
| 2 | 3 | 3.5 |
| 3 | 3 | 4 |
| 4 | 3 | 5 |
| 5 | 3 | 6 |
| 6 | 3 | 7 |
| 7 | 3 | 8 |
| 8 | 3 | 8 |
| 9 | 3 | 9 |
| 10 | 3 | 10 |
| 11 | 3 | 10.5 |
| 12 | 3 | 11 |
| 13 | 3 | 11.5 |
| 14 | 3 | 12 |
| 15 | 3 | 13 |
| 16 | 3 | 13.5 |
| 17 | 3 | 14 |
| 18 | 3 | 14.5 |
| 19 | 3 | 15 |
| 20 | 3 | 15.5 |
| 21 | 3 | 16 |
| 22 | 3 | 16.5 |
| 23 | 3 | 17 |
| 24 | 3 | 17.5 |
| 25 | 3 | 18 |
| 26 | 3 | 18.5 |
| 27 | 3 | 19 |
| 28 | 3 | 19.5 |
| 29 | 3 | 20 |
| 30 and above | 3 | 20 |
For Companies with Fewer Than 11 Employees
Companies with fewer than 11 employees benefit from lower minimums, acknowledging the reduced financial capacity of very small businesses:
| Length of Service (complete years) | Minimum Compensation (months) |
|---|---|
| 0 | None |
| 1 | 0.5 |
| 2 | 0.5 |
| 3 | 1 |
| 4 | 1 |
| 5 | 1.5 |
| 6 | 1.5 |
| 7 | 2 |
| 8 | 2 |
| 9 | 2.5 |
| 10 and above | 2.5 |
The maximums are identical to those for companies with 11 or more employees. Only the minimums differ.
The Calculation Basis: Gross Monthly Salary Reference
Two Possible Methods of Calculation
The reference salary used for calculating compensation is determined using the most advantageous formula for the employee:
- The average of the last 12 months of gross salary preceding notification of dismissal
- The average of the last 3 months of gross salary preceding notification of dismissal (bonuses and exceptional or annual gratifications are prorated in this case)
The employment tribunal automatically retains the formula favorable to the employee. Components of remuneration considered include base salary, bonuses (seniority, 13th month, performance), benefits in kind, and regular overtime hours.
Exclusions from the Calculation
The calculation base excludes reimbursements for professional expenses, dismissal severance indemnities, amounts paid in relation to profit-sharing and incentive schemes, as well as compensatory indemnities for paid leave and notice period (which are due in addition to the indemnity for dismissal without real and serious cause).
Exceptions to the Scale: Cases of Nullity of Dismissal
Situations Outside the Scale
The Macron scale does not apply when the dismissal is null. Cases of nullity, which are exhaustively enumerated by law, allow the employee to obtain compensation without a cap, with a minimum of 6 months’ salary (Article L.1235-3-1 of the Labour Code). The main cases of nullity include:
- Discrimination (Article L.1132-4): dismissal based on origin, gender, sexual orientation, age, family situation, pregnancy, genetic characteristics, belonging or not to an ethnicity, a nation or a presumed race, political opinions, union or mutual activities, religious beliefs, physical appearance, surname, place of residence, health status, loss of autonomy, or disability.
- Moral or sexual harassment (Articles L.1152-2 and L.1153-2)
- Violation of a fundamental freedom: freedom of expression, right to strike, freedom of association.
- Violation of a specific protection: protected employee (staff representative), pregnant employee, employee on leave due to work-related accidents or occupational diseases, whistleblower.
Compensation in Cases of Nullity
When the dismissal is null, the employee can request their reinstatement in the company. If they do not request reinstatement, or if it is impossible, they are entitled to indemnity that cannot be less than the salaries of the last 6 months. This indemnity is uncapped, and the judge has sovereign discretion to set the amount, taking into account the actual harm suffered by the employee.
Consolidated Case Law: Validation by the Court of Cassation
The May 11, 2022 Ruling: A Turning Point
In two rulings delivered in plenary session on May 11, 2022 (Cases No. 21-14.490 and No. 21-15.247), the Social Chamber of the Court of Cassation definitively ruled that the Macron scale is compliant with Article 10 of ILO Convention No. 158 and Article 24 of the European Social Charter.
The Court determined that the scale allows, in all cases, for “adequate” compensation within the meaning of ILO Convention No. 158 and that the provisions of the European Social Charter do not have direct effect in French law, such that they cannot be invoked by litigants before national courts to override the application of the scale.
The End of Resistance from Employment Tribunals
Prior to this ruling, many employment tribunals had resisted by disregarding the scale, arguing that it did not provide adequate redress for harm in certain individual situations. The CPHs of Troyes, Amiens, Lyon, Grenoble, and Paris notably issued decisions that set aside the scale in favor of an individualized compensation.
The ruling of May 11, 2022, terminated this resistance by clearly stating that the scale cannot be set aside by trial judges, even on a case-by-case basis. This position has been confirmed by numerous subsequent decisions from appellate courts that have consistently overturned first-instance judgments that disregarded the scale.
Constitutional Compliance Confirmed by the Conseil d’État
The Conseil d’État had previously validated the scale’s compliance with constitutional and conventional standards in a ruling of December 7, 2017. It ruled that the scale did not violate the principle of equality before the law, nor the right to effective judicial remedy, nor the principle of full compensation for harm (which does not have constitutional value in cases of dismissal).
Litigation Strategy for Employers
Securing Dismissals in Advance
The Macron scale offers employers predictability of litigation costs which should be integrated into the human resources management strategy. Before any dismissal, it is advisable to:
- Verify the absence of nullity grounds: ensure the dismissal cannot be classified as discriminatory, linked to harassment, or infringing on a fundamental freedom.
- Calculate maximum exposure: determine the applicable compensation cap based on the employee’s seniority.
- Document rigorously: compile a solid file demonstrating the real and serious cause for the dismissal.
- Evaluate the opportunity for a rupture conventionnelle: in certain cases, a rupture conventionnelle (mutual termination) may be preferable to contentious dismissal.
Transactional Negotiation in Light of the Scale
The scale has profoundly changed the practice of transactional negotiation. Transactional indemnities are now typically situated within the scale’s range, as employees have lost the leverage constituted by judicial uncertainty regarding high indemnities. For the employer, proposing a transactional indemnity close to the maximum of the scale often constitutes a credible offer that helps avoid the costs and uncertainties of a prud’homale procedure.
Impact on Accounting Provisions
For payroll managers and financial directors, the Macron scale facilitates accounting provisions for employment disputes. The maximum financial risk is now quantifiable with precision, which enhances reliability in accounts and simplifies communication with auditors and account controllers.
Cumulative Indemnities with the Scale
It is important to note that the indemnity for dismissal without real and serious cause (Macron scale) can be accumulated with other indemnities:
- Legal or contractual dismissal indemnity (Article L.1234-9 of the Labour Code)
- Compensatory indemnity for notice period
- Compensatory indemnity for paid leave
- Damages for non-compliance with dismissal procedure (limited to 1 month’s salary, Article L.1235-2)
- Salary arrears (overtime, bonuses, etc.)
The total cost of a successfully contested dismissal before the employment tribunal can thus significantly exceed the maximum cap of the Macron scale. Employers must incorporate all these components into their assessment of litigation risk.
Prospects for Evolution of the Scale
Proposals for Revision
Despite the jurisprudential validation, the Macron scale continues to be subject to doctrinal and union criticism. Several legislative proposals have been submitted to raise the minimums, eliminate the maximums, or exclude certain categories of employees (notably employees over 55 or employees with disabilities). To date, none of these proposals have succeeded.
Influence of European Law
The European Committee of Social Rights (ECSR) has issued observations regarding the compliance of the French scale with the European Social Charter. While the Court of Cassation has ruled that the Charter does not have direct effect, the evolution of European jurisprudence could, in time, compel the French legislator to review the provisions. HR professionals must remain vigilant of these developments.
FAQ: Your Questions about the Macron Scale
Does the Macron Scale apply in cases of dismissal for gross misconduct?
The scale only applies when the judge reclassifies the dismissal as without real and serious cause. If the judge finds that gross misconduct is established, the employee is entitled to no indemnity under the scale (neither dismissal indemnity nor notice indemnity). Conversely, if the judge rejects the gross misconduct and determines the dismissal to be without real and serious cause, the scale applies fully.
Can a judge still disregard the scale in 2025?
Since the Court of Cassation’s rulings of May 11, 2022, trial judges can no longer disregard the scale. If an employment tribunal were to grant an indemnity exceeding the cap, that decision would be overturned on appeal or in cassation. However, the scale does not apply in cases of nullity of dismissal (discrimination, harassment, violation of a fundamental freedom, etc.).
How is seniority calculated for the scale?
Seniority is assessed in complete years at the date of notification of the dismissal (and not at the date of end of notice period). Periods of suspension of the contract (sickness, parental leave, etc.) are taken into account according to usual rules. In the case of incomplete seniority, the scale provides intermediate values for seniority brackets expressed in full years.
Does the scale apply to contested rupture conventionnelles?
No, the Macron scale applies only to dismissals without real and serious cause. If a rupture conventionnelle is annulled by the judge, the consequences depend on the basis for the annulment. If the rupture conventionnelle produces the effects of a dismissal without real and serious cause, the scale may apply. Conversely, if the annulment is based on a vice of consent (violence, deception), indemnification falls under common law.
Is the scale applicable to protected employees?
The dismissal of a protected employee pronounced in violation of the procedure for administrative authorization is null, rather than merely without real and serious cause. In this case, the scale does not apply, and the employee may claim a minimum indemnity of 6 months’ salary, without cap. Conversely, if the dismissal of a protected employee is authorized by the labor inspector but deemed without real and serious cause, the scale applies.