The Macron Scale: Caps on Unfair Dismissal Awards and Legal Challenges in 2025
Introduction: The Macron Scale, an Essential Framework in French Labour Litigation
Introduced by the Macron Ordinances of 22 September 2017 and codified in Article L.1235-3 of the French Labour Code, the scale for compensating dismissals without real and serious cause (licenciement sans cause réelle et sérieuse) is one of the most structuring reforms of French labour law over the past decade. By setting floors and caps on employment tribunal awards based on the employee’s length of service and the size of the company, this scale (the barème Macron) has profoundly changed the approach to dismissal litigation.
After years of judicial challenges, the French Supreme Court (Cour de cassation) definitively confirmed the scale’s compliance on 11 May 2022, ending the resistance of certain labour tribunals (conseils de prud’hommes). 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 Awards
For Companies with 11 Employees or More
The scale sets minimum awards (floors) and maximum awards (caps), expressed in months of gross salary, according to the employee’s length of service in the company at the time of termination of the employment contract:
| Length of service (full years) | Minimum award (months) | Maximum award (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 reduced floors, in recognition of the lower financial capacity of very small businesses:
| Length of service (full years) | Minimum award (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 caps are identical to those for companies with 11 employees or more. 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 awards is determined according to the formula most favourable to the employee:
- The average of the last 12 months of gross salary preceding notification of the dismissal
- The average of the last 3 months of gross salary preceding notification of the dismissal (in which case exceptional or annual bonuses and gratuities are prorated)
The labour tribunal automatically applies the formula most favourable to the employee. The remuneration components taken into account include base salary, bonuses (seniority, 13th month, targets), benefits in kind and regular overtime.
Components Excluded from the Calculation
Excluded from the calculation basis are reimbursements of professional expenses, severance pay, sums paid under profit-sharing (participation) and incentive schemes (intéressement), as well as compensatory allowances for paid leave and notice period (which are due in addition to compensation for dismissal without real and serious cause).
Exceptions to the Scale: Cases of Null and Void Dismissal
Situations Outside the Scale
The Macron scale does not apply where the dismissal is null and void. The grounds for nullity, exhaustively listed by law, allow the employee to obtain compensation with no cap, subject to a minimum of 6 months’ salary (Article L.1235-3-1 of the French Labour Code). The main grounds for 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 following a workplace accident or occupational illness, whistleblower
Compensation in the Event of Nullity
Where the dismissal is null and void, the employee may request reinstatement in the company. If they do not request reinstatement, or if it is impossible, they are entitled to compensation that cannot be less than the salary of the last 6 months. This compensation is not capped, and the court has full discretionary power to set the amount, taking into account the actual loss suffered by the employee.
Consolidated Case Law: Validation by the Supreme Court
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 held 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 have no direct effect in French law, so that they cannot be invoked by litigants before national courts to set aside application of the scale.
The End of Resistance by Labour Tribunals
Before this ruling, many labour tribunals had resisted by setting aside the scale, considering that it did not allow adequate compensation for the loss in certain individual situations. The labour tribunals 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 courts, 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 Council of State
The Council of State (Conseil d’État) had already confirmed the scale’s compliance with constitutional and international standards in a ruling of 7 December 2017. It held that the scale did not infringe the principle of equality before the law, the right to an effective judicial remedy, or the principle of full compensation for loss (which does not have constitutional status in dismissal matters).
Litigation Strategy for the Employer
Securing the Dismissal Upstream
The Macron scale offers employers predictability of litigation costs, which must be integrated into human resources management strategy. Before any dismissal, it is recommended to:
- Verify the absence of grounds for nullity: ensure that the dismissal cannot be characterised as discriminatory, linked to harassment or infringing a fundamental freedom
- Calculate the 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 option of a rupture conventionnelle (mutually agreed termination): in certain cases, a rupture conventionnelle may be preferable to a contentious dismissal
Settlement Negotiation in Light of the Scale
The scale has profoundly changed the practice of settlement negotiation. Settlement amounts now generally fall within the range of the scale, as employees have lost the leverage previously provided by the judicial uncertainty of high awards. For the employer, offering a settlement amount close to the scale’s cap often constitutes a credible offer that avoids the costs and uncertainties of tribunal proceedings.
Impact on Accounting Provisions
For payroll managers and finance directors, the Macron scale facilitates the accounting provisioning for labour disputes. The maximum financial risk is now quantifiable with precision, which improves the reliability of accounts and simplifies exchanges with statutory auditors.
Awards That Can Be Combined with the Scale
It is important to note that the award for dismissal without real and serious cause (the Macron scale) can be combined with other forms of compensation:
- The statutory or contractual severance pay (Article L.1234-9 of the French Labour Code)
- The compensatory allowance for the notice period
- The compensatory allowance for 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 tribunal may therefore significantly exceed the scale’s cap alone. Employers must incorporate all of these components into their assessment of litigation risk.
Prospects for Changes to the Scale
Proposed Revisions
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 (in particular employees over 55 or employees with disabilities). To date, none of these proposals has been enacted.
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. While the Cour de cassation held that the Charter has no direct effect, developments in European case law could, in time, compel the French legislature to review the mechanism. HR professionals should remain attentive to these developments.
FAQ: Your Questions on the Macron Scale
Does the Macron scale apply in the event of dismissal for gross misconduct?
The scale applies only where the court reclassifies the dismissal as one without real and serious cause. If the court finds that gross misconduct (faute grave) is established, the employee is entitled to no award under the scale (neither severance pay nor notice-period compensation). Conversely, if the court sets aside the finding of gross misconduct and holds the dismissal to be without real and serious cause, the scale applies in full.
Can a court still set aside the scale in 2025?
Since the Cour de cassation rulings of 11 May 2022, trial courts can no longer set aside the scale. If a labour tribunal were to award compensation exceeding the cap, that decision would be overturned on appeal or before the Supreme Court. However, the scale does not apply in cases of null and 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 of notification of the dismissal (and not the date the notice period ends). Periods during which the contract was suspended (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 is annulled by the court, the consequences depend on the grounds for annulment. If the rupture conventionnelle produces the effects of a dismissal without real and serious cause, the scale could apply. However, if the annulment is based on a defect of consent (duress, fraud), compensation falls under general law.
Does the scale apply to protected employees?
The dismissal of a protected employee carried out in violation of the administrative authorisation procedure is null and void, not merely without real and serious cause. In such a case, the scale does not apply and the employee may claim a minimum award of 6 months’ salary, with no cap. Conversely, if the dismissal of a protected employee is authorised by the labour inspector but held to be without real and serious cause, the scale applies.