Dismissal in France: termination of employment at the employer’s initiative
In France, employers can terminate an employment contract within a specific legal framework. Whether for personal or economic reasons, every dismissal follows strict rules that govern the procedure and secure the decision.
How can an employer terminate an employment contract?
In France, the termination of an employment contract at the employer’s initiative follows a structured legal framework. It distinguishes between situations related to the employee and those related to the business’s needs.
- Dismissal for personal reasons relates to factors specific to the employee, such as conduct, skills or suitability for the role.
- Dismissal for economic reasons (redundancy) is based on factors external to the employee, related to the business’s situation and its business activity.
This page identifies the two main categories of dismissal, helps you understand the underlying logic and outlines the primary steps involved.
What are the main types of dismissal in France?
Dismissal on personal grounds
Dismissal for personal reasons occurs when the termination of the employment contract is linked to the employee’s specific situation. This may result from misconduct, professional inadequacy or difficulties in performing the role.
Dismissal on economic grounds
Dismissal for economic reasons occurs when the termination is linked to the business’s situation: economic difficulties, technological changes, reorganization necessary to maintain competitiveness or cessation of activity. It may be individual or collective.