The Macron Scale (Barème Macron): Caps on Unfair Dismissal Compensation and Legal Challenges in 2025
Introduction: the Macron scale, an unavoidable framework in employment litigation
Introduced by the Macron ordinances of 22 September 2017 and codified in Article L.1235-3 of the French Labour Code, the compensation scale for dismissal without real and serious cause (licenciement sans cause réelle et sérieuse) is one of the most structuring reforms of French employment law over the past decade. By setting floors and caps on compensation awarded by the conseil de prud’hommes (French labour court) based on the employee’s length of service and the size of the company, this scale has profoundly changed the approach to dismissal litigation.
After years of judicial challenge, the Cour de cassation (French Supreme Court) definitively upheld the scale’s validity on 11 May 2022, putting an end to the resistance of certain labour courts. In 2025, the scale applies in a consolidated manner, but its exceptions, its case law and its calculation methods warrant an in-depth analysis for HR professionals and payroll managers.
The complete scale: floors and caps on compensation
For companies with 11 or more employees
The scale sets minimum (floors) and maximum (caps) compensation expressed in months of gross salary, according to the employee’s length of service in the company at the time the employment contract is terminated:
| Length of service (full 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 over | 3 | 20 |
For companies with fewer than 11 employees
Companies with fewer than 11 employees benefit from reduced floors, recognising the lower financial capacity of very small businesses:
| Length of service (full 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 over | 2.5 |
The caps are identical to those for companies with 11 or more employees. Only the floors differ.
The calculation basis: the reference gross monthly salary
Two possible calculation methods
The reference salary used as the basis for calculating compensation is determined according to the formula most favourable to the employee:
- The average of the last 12 months of gross salary preceding the notification of dismissal
- The average of the last 3 months of gross salary preceding the notification of dismissal (in which case exceptional or annual bonuses and gratuities are prorated)
The labour court judge automatically retains the formula most favourable to the employee. The remuneration components taken into account include the base salary, bonuses (seniority, 13th month, target-based), benefits in kind and regular overtime.
Components excluded from the calculation
Excluded from the calculation basis are professional expense reimbursements, severance pay, sums paid under profit-sharing (participation) and incentive schemes (intéressement), as well as compensation in lieu of paid leave and notice (which are due in addition to compensation for dismissal without real and serious cause).
Exceptions to the scale: cases of void dismissal
Situations outside the scale
The Macron scale does not apply where the dismissal is void (nul). The cases of nullity, exhaustively listed 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 French Labour Code). The main cases of nullity are:
- Discrimination (Article L.1132-4): dismissal based on origin, sex, sexual orientation, age, family situation, pregnancy, genetic characteristics, membership or non-membership of an ethnic group, nation or alleged race, political opinions, trade union or mutualist activities, religious beliefs, physical appearance, surname, place of residence, state of health, loss of autonomy or disability
- Moral or sexual harassment (Articles L.1152-2 and L.1153-2)
- Infringement 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 for a work accident or occupational illness, whistleblower
Compensation in the event of a void dismissal
Where the dismissal is void, the employee may request reinstatement in the company. If the employee does not request reinstatement, or if reinstatement is impossible, they are entitled to compensation which cannot be less than the salary of the last 6 months. This compensation is uncapped, and the judge has sovereign discretion to determine the amount, taking into account the actual harm suffered by the employee.
Consolidated case law: validation by the Cour de cassation
The ruling of 11 May 2022: a decisive turning point
In two rulings handed down in plenary session on 11 May 2022 (appeals no. 21-14.490 and no. 21-15.247), the Social Chamber of the Cour de cassation definitively held that the Macron scale is compliant with Article 10 of Convention No. 158 of the International Labour Organization (ILO) and with Article 24 of the European Social Charter.
The Court considered that the scale allows, in all cases, “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, so that they cannot be invoked by litigants before national courts to set aside the application of the scale.
The end of the labour courts’ resistance
Before this ruling, many labour courts had resisted by setting aside the scale, considering that it did not allow adequate compensation for the harm in certain individual situations. The labour courts of Troyes, Amiens, Lyon, Grenoble and Paris had notably issued decisions setting aside the scale in favour of case-by-case (in concreto) compensation.
The ruling of 11 May 2022 put an end to this resistance by clearly establishing 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 of the courts of appeal, which have systematically overturned first-instance judgments setting aside the scale.
Constitutional compliance confirmed by the Conseil d’État
The Conseil d’État (French Council of State) had already upheld the scale’s compliance with constitutional and treaty standards in a ruling of 7 December 2017. It held that the scale did not infringe the principle of equality before the law, nor the right to an effective judicial remedy, nor the principle of full compensation for harm (which does not have constitutional standing in dismissal matters).
Litigation strategy for the employer
Securing the dismissal upstream
The Macron scale offers employers predictability of litigation costs that must be integrated into human resources management strategy. Before any dismissal, it is recommended to:
- Verify the absence of any ground for nullity: ensure that the dismissal cannot be characterised as discriminatory, connected to harassment, or infringing a fundamental freedom
- Calculate maximum exposure: determine the applicable compensation cap based on the employee’s length of service
- Document rigorously: build a solid file demonstrating the real and serious cause of the dismissal
- Assess the appropriateness of a rupture conventionnelle (mutually agreed termination): in certain cases, a mutually agreed termination may be preferable to a contentious dismissal
Settlement negotiations in light of the scale
The scale has profoundly changed the practice of settlement negotiations. Settlement amounts now generally fall within the range of the scale, with employees having lost the leverage that the judicial uncertainty of high awards once provided. For the employer, offering settlement compensation close to the scale’s cap often constitutes a credible offer that avoids the costs and uncertainties of labour court proceedings.
The impact on accounting provisions
For payroll managers and finance directors, the Macron scale facilitates the accounting provisioning of labour disputes. The maximum financial risk is now precisely quantifiable, which improves the reliability of accounts and simplifies discussions with statutory auditors and external auditors.
Compensation that can be combined with the scale
It is important to note that compensation for dismissal without real and serious cause (the Macron scale) combines with other forms of compensation:
- Statutory or contractual severance pay (Article L.1234-9 of the French Labour Code)
- Compensation in lieu of notice
- Compensation in lieu of paid leave
- Damages for failure to comply with the dismissal procedure (limited to 1 month’s salary, Article L.1235-2)
- Salary arrears (overtime, bonuses, etc.)
The total cost of a dismissal successfully challenged before the labour court can therefore significantly exceed the Macron scale cap alone. Employers must incorporate all of these components into their assessment of litigation risk.
Prospects for the scale’s evolution
Proposals for revision
Despite its judicial validation, the Macron scale continues to be the subject of academic and union criticism. Several bills have been tabled to raise the floors, remove the caps, or exclude certain categories of employees (notably employees over 55 or employees with disabilities). To date, none of these proposals has been adopted.
The influence of European law
The European Committee of Social Rights (ECSR) has issued observations on the compliance of the French scale with the European Social Charter. Although the Cour de cassation held that the Charter does not have direct effect, developments in European case law could, in time, compel the French legislator to review the mechanism. HR professionals should remain attentive to these developments.
FAQ: Your questions about the Macron scale
Does the Macron scale apply in the event of dismissal for gross misconduct?
The scale applies only where the judge reclassifies the dismissal as a dismissal without real and serious cause. If the judge finds that gross misconduct (faute grave) is established, the employee is entitled to no compensation under the scale (neither severance pay nor compensation in lieu of notice). Conversely, if the judge sets aside the gross misconduct and rules the dismissal to be without real and serious cause, the scale applies in full.
Can a judge still set aside the scale in 2025?
Since the Cour de cassation rulings of 11 May 2022, trial judges can no longer set aside the scale. If a labour court were to award compensation exceeding the cap, that decision would be overturned on appeal or before the Cour de cassation. However, the scale does not apply in cases of void dismissal (discrimination, harassment, violation of a fundamental freedom, etc.).
How is length of service calculated for the scale?
Length of service is assessed in full years as at the date the dismissal is notified (and not as at the date the notice period ends). Periods of contract suspension (illness, parental leave, etc.) are taken into account according to the usual rules. Where length of service is incomplete, the scale provides intermediate values for the length-of-service brackets expressed in full years.
Does the scale apply to challenged mutually agreed terminations?
No, the Macron scale applies only to dismissal without real and serious cause. If a rupture conventionnelle (mutually agreed termination) is annulled by the judge, the consequences depend on the basis for the annulment. If the mutually agreed termination produces the effects of a dismissal without real and serious cause, the scale could apply. Conversely, if the annulment is based on a defect in consent (duress, fraud), compensation falls under ordinary law.
Does the scale apply to protected employees?
The dismissal of a protected employee carried out in violation of the administrative authorisation procedure is void, and not merely without real and serious cause. In this case, the scale does not apply, and the employee may claim minimum compensation of 6 months’ salary, without a cap. Conversely, if the dismissal of a protected employee is authorised by the labour inspector but ruled to be without real and serious cause, the scale applies.