Severance Pay for Dismissal on Grounds of Unfitness and RQTH Status: A Complete Employer’s Guide

Severance pay for dismissal on grounds of unfitness (inaptitude), where it involves an employee with recognised disabled-worker status (Reconnaissance de la Qualité de Travailleur Handicapé, or RQTH), requires rigorous handling by employers. To secure payroll and meet legal obligations, it is essential to understand the applicable steps and conditions.

What Is Severance Pay for Dismissal on Grounds of Unfitness?

Severance pay linked to unfitness (inaptitude) refers to the situation in which an employee can no longer continue working due to an incapacity, generally established by an occupational physician (médecin du travail). This unfitness may result from an illness or an accident, and, where it concerns an employee with recognised RQTH status, specific provisions must be taken into account.

Key Steps to Follow

1. Establishing unfitness: The first step is to obtain an assessment from the occupational physician. The physician must find that the employee is unfit for their position or for any other position within the company.
2. Search for redeployment: Once unfitness has been established, the employer is under an obligation to search for a redeployment position suited to the employee’s capabilities. This obligation is strengthened for employees benefiting from RQTH status. Article L. 1226-10 of the French Labour Code provides that, where redeployment is impossible, dismissal may be considered.
3. Notification of dismissal: If no redeployment solution is found, the employer may proceed with the dismissal. Notification must be made by registered letter with acknowledgement of receipt, setting out the grounds for the dismissal.
4. Payment of severance pay: The amount of severance pay varies according to several factors, in particular the applicable collective bargaining agreement (convention collective) and the employee’s length of service. Statutory severance pay must comply with the minimum amounts set by the French Labour Code.

Taking RQTH Status Into Account for Severance Pay

RQTH recognition affects several aspects of the dismissal and of the severance pay. Companies may face additional obligations, in particular regarding the obligation to employ disabled workers (obligation d’emploi des travailleurs handicapés). Employers are required to hire a certain percentage of disabled workers. Failing to comply with this obligation can result in financial consequences.

It is also important to note that RQTH employees may benefit from particular measures during the notice period, in particular the possibility of being exempted from the notice period, depending on the terms of their contract and the applicable collective bargaining agreement.

Payroll Implications

Severance Pay and Social Security Contributions

Where an employee is dismissed on grounds of unfitness, the severance pay has specific payroll implications. This severance pay is generally exempt from social security contributions, but this also depends on its total amount and on how the payment is classified.

• Payments made in connection with a dismissal on grounds of unfitness must be carefully distinguished from other types of payments, in particular those paid in respect of work not performed.
• Depending on the collective bargaining agreement, provisions may also set out payments that will be added to the statutory severance pay, which must be taken into account when calculating contributions.

Treatment of Supplementary Benefit (Prévoyance) Payments

The issue of supplementary benefit (prévoyance) payments is also crucial. The cover taken out by the employer (such as supplementary health and retirement cover) may affect the net amount received by the employee, in particular as regards salary continuation and daily allowances.

Frequently Asked Questions

What are the employer’s obligations in a dismissal on grounds of unfitness?

The employer must consult the occupational physician, search for redeployment, and notify the dismissal by registered letter with acknowledgement of receipt.

Is severance pay for dismissal on grounds of unfitness subject to social security contributions?

No, this severance pay is generally exempt from social security contributions. However, check the specific provisions of your collective bargaining agreement.

What is the difference between RQTH and unfitness?

RQTH is a formal recognition of disability, whereas unfitness (inaptitude) concerns the inability to carry out one’s professional duties, generally established by an occupational physician.

What are the payroll implications in the event of a dismissal on grounds of unfitness?

It is important to distinguish between the various payments and to manage social security contributions carefully, in order to avoid errors on the payslip.

How can the dismissal process be secured?

Document all steps, comply with the legal procedures, and consider retaining a specialist lawyer to secure the process.

Final Note

As an employer, it is crucial to master the legal obligations and financial implications of dismissal on grounds of unfitness, in particular for RQTH employees. DAIRIA Avocats is available to assist you in securing your payroll practices and ensuring compliance with the legal standards in force.

📌 This article is part of the complete file Payroll Law: The Employer’s Guide.