How much does it cost to dismiss an employee in France?

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You’re planning to dismiss one of your employees. Before launching the procedure, you want to assess as accurately as possible the cost of dismissal.

Here are a few tips to help you estimate the cost for your company.

1/Step one: calculate the mandatory termination payments

In case of dismissal, 3 kinds of indemnities must be paid to the employee:

–         a severance pay

–         a indemnity in lieu of notice

–         a payment in lieu of accrued holiday

2/Step 2:  Assess the potential damages for unfair dismissal

In addition, if the dismissal is without cause, the employee will probably bring a claim for unfair dismissal before the Employment Tribunal to obtain damages that you should provision for.

The good news is that the amount of these damages based on the employee’s length of service is now predictable thanks to the Macron Scale.



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