The Macron Scale: French Unfair Dismissal Compensation Caps and Challenges in 2025
Introduction: the Macron scale, a cornerstone of 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 structural reforms of French employment law of 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 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, 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 an in-depth analysis for HR professionals and payroll managers.
The full scale: minimum and maximum 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 the employment contract is terminated:
| 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 more | 3 | 20 |
For companies with fewer than 11 employees
Companies with fewer than 11 employees benefit from reduced floors, recognising the more limited 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 more | 2.5 |
The caps are identical to those for companies with 11 employees or more. Only the floors differ.
The calculation base: the reference gross monthly salary
Two possible calculation methods
The reference salary used as the basis for calculating the award 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 the dismissal
- The average of the last 3 months of gross salary preceding the notification of the dismissal (exceptional or annual bonuses and gratuities are then prorated)
The labour court automatically applies whichever formula is more 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 base are reimbursements of business 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 the compensation for dismissal without real and serious cause).
Exceptions to the scale: cases of dismissal nullity
Situations outside the scale
The Macron scale does not apply where the dismissal is null and void. The cases of nullity, exhaustively listed by law, allow the employee to obtain uncapped compensation, 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, a nation or a so-called race, political opinions, trade-union or mutualist activities, religious beliefs, physical appearance, surname, place of residence, state of health, loss of autonomy or disability
- Psychological or sexual harassment (Articles L.1152-2 and L.1153-2)
- Infringement of a fundamental freedom: freedom of expression, the right to strike, trade-union freedom
- Violation of a specific protection: protected employee (staff representative), pregnant employee, employee on leave following a workplace accident or occupational illness, whistle-blower
Compensation in cases of nullity
Where the dismissal is null and 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 that may not be less than the last 6 months’ salary. This compensation is uncapped and the court has sovereign discretion to set the amount, taking into account the loss actually 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 have no direct effect in French law, so that they cannot be relied upon 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 loss suffered in certain individual situations. The labour courts of Troyes, Amiens, Lyon, Grenoble and Paris in particular had handed down decisions disregarding 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 disregarding the scale.
Constitutional compliance confirmed by the Conseil d’État
The Conseil d’État (Council of State) had already upheld the scale’s compliance with constitutional and treaty standards by 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 matters of dismissal).
Litigation strategy for the employer
Securing the dismissal in advance
The Macron scale offers employers predictability of litigation costs that should be factored 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, connected 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 rupture conventionnelle: in certain cases, a mutually agreed termination (“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 (“négociation transactionnelle”). Settlement amounts now generally fall within the range of the scale, employees having lost the leverage that the judicial uncertainty of high awards once provided. For the employer, offering a settlement amount close to the scale’s cap is often a credible offer that avoids the costs and uncertainties of employment-tribunal proceedings.
The impact on accounting provisions
For payroll managers and finance directors, the Macron scale facilitates the accounting provisioning of employment-tribunal disputes. The maximum financial risk is now precisely quantifiable, which improves the reliability of the accounts and simplifies discussions with statutory auditors and auditors.
Awards that can be combined with the scale
It is important to recall that compensation for dismissal without real and serious cause (Macron scale) is cumulative with other payments:
- Statutory or contractual severance pay (Article L.1234-9 of the French Labour Code)
- Compensatory allowance in lieu of notice
- 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 courts can therefore significantly exceed the Macron scale cap alone. Employers must factor in all of these components in their assessment of litigation risk.
Prospects for the scale’s evolution
Proposals for reform
Despite judicial validation, the Macron scale continues to be the subject of academic and trade-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 a disability). 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 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 court reclassifies the dismissal as a dismissal without real and serious cause. If the court finds that the gross misconduct is established, the employee is entitled to no compensation under the scale (neither severance pay nor payment in lieu of notice). Conversely, if the court dismisses the finding of gross misconduct and rules that the dismissal was 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 court were to award compensation exceeding the cap, that decision would be overturned on appeal or in cassation. However, the scale does not apply in cases of dismissal nullity (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 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 bands 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 set aside by the court, the consequences depend on the grounds for 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 of 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 null and void, and not merely without real and serious cause. In this case, the scale does not apply and the employee can 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.