The Macron Scale: Caps on Unfair Dismissal Compensation and Legal Challenges in 2025
Introduction: The Macron Scale, an Essential Framework in Labour Court 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 of the past decade. By setting floors and caps on labour court awards 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 legal challenges, the French Supreme Court (Cour de cassation) definitively upheld the scale’s compliance on 11 May 2022, ending the resistance of certain labour courts (conseils de prud’hommes). In 2025, the scale applies in a consolidated manner, but its exceptions, its case law, and its calculation methods warrant a thorough analysis for HR professionals and payroll managers.
The Full Scale: Compensation Floors and Caps
For Companies With 11 or More Employees
The scale sets minimum (floor) and maximum (cap) 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 more | 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 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 more | 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 Methods of Calculation
The reference salary used as the basis for calculating compensation is determined using the method 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 automatically applies the method most favourable to the employee. The elements of remuneration taken into account include the base salary, bonuses (seniority, 13th month, targets), benefits in kind, and regular overtime.
Items 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 compensatory payments 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 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 without a cap, with 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 purported 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, trade union freedom
- Violation of a specific protection: protected employee (salarié protégé, e.g. employee representative), pregnant employee, employee on leave for a workplace accident or occupational illness, whistleblower
Compensation in Cases of Nullity
Where the dismissal is null, the employee may request reinstatement in the company. If they do not request reinstatement, or if reinstatement is impossible, they are entitled to compensation which cannot be less than the salary for the last 6 months. This compensation is uncapped, and the court has sovereign discretion to set its amount, taking into account the actual harm suffered by the employee.
Consolidated Case Law: Validation by the French 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 French Supreme Court definitively held that the Macron scale complies with Article 10 of Convention No. 158 of the International Labour Organization (ILO) and with Article 24 of the European Social Charter.
The Court found 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, such that litigants cannot invoke them before national courts to set aside application of the scale.
The End of Resistance by Labour Courts
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, in particular, had rendered 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 Council of State
The Council of State (Conseil d’État) had already upheld the scale’s compliance with constitutional and treaty norms 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 harm (which does not have constitutional value in dismissal matters).
Litigation Strategy for the Employer
Securing the Dismissal in Advance
The Macron scale offers employers predictability of litigation cost, which should be integrated into human resources management strategy. Before any dismissal, it is advisable to:
- Verify the absence of any ground 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 appropriateness of a negotiated termination: in some cases, a rupture conventionnelle (mutually agreed termination) may be preferable to a contested dismissal
Settlement Negotiation in Light of the Scale
The scale has profoundly changed the practice of settlement negotiation (négociation transactionnelle). Settlement compensation now generally falls 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 settlement compensation close to the cap of the scale 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 court disputes. The maximum financial risk can now be quantified precisely, which improves the reliability of accounts and simplifies exchanges with statutory auditors and external auditors.
Compensation That Can Be Combined With the Scale
It is important to recall that compensation for dismissal without real and serious cause (Macron scale) can be combined with other forms of compensation:
- Statutory or collectively agreed severance pay (Article L.1234-9 of the French Labour Code)
- Compensatory payment in lieu of notice
- Compensatory payment for paid leave
- Damages for failure to comply with the dismissal procedure (limited to 1 month’s salary, Article L.1235-2)
- Back pay (overtime, bonuses, etc.)
The total cost of a dismissal successfully challenged before the labour court may therefore significantly exceed the cap of the Macron scale alone. Employers must factor all of these components into their assessment of litigation risk.
Prospects for Change to the Scale
Proposals for Revision
Despite judicial validation, the Macron scale continues to be the subject of academic and trade union criticism. Several draft laws 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 French Supreme Court has 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 About the Macron Scale
Does the Macron scale apply in cases of dismissal for gross misconduct?
The scale applies only where the court re-characterises the dismissal as a dismissal without real and serious cause. If the court finds that gross misconduct is established, the employee is entitled to no compensation under the scale (neither severance pay nor payment in lieu of notice). However, if the court dismisses the finding of gross misconduct and holds 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 French Supreme Court 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 Supreme Court. However, the scale does not apply in cases of null 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 at the end of the notice period). Periods of contract suspension (illness, parental leave, etc.) are taken into account according to the usual rules. For incomplete years of service, the scale provides intermediate values for the service brackets expressed in full years.
Does the scale apply to challenged negotiated 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 court, the consequences depend on the grounds for annulment. If the negotiated termination 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 the ordinary law of damages.
Does the scale apply to protected employees?
The dismissal of a protected employee carried out in breach of the administrative authorisation procedure is null, not merely without real and serious cause. In such cases, the scale does not apply and the employee may claim minimum compensation of 6 months’ salary, without a cap. However, 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.