Dismissal on personal grounds: conditions and procedure
In France, dismissal on personal grounds allows an employer to terminate an employment contract for reasons related to the employee. It must be based on a real and serious cause and follow a structured procedure.
In a nutshell
- Dismissal on personal grounds is based on factors related to the employee.
- It must be founded on a real and serious cause.
- It can be disciplinary or non-disciplinary.
- The employer must follow a specific procedure.
What is dismissal on personal grounds?
Dismissal on personal grounds is distinguished from economic dismissal in that it is based on factors related to the employee as an individual.
It may be justified by misconduct, professional inadequacy, incapacity or certain absences that disrupt the business’s operations. In all cases, it must be based on precise, objective and verifiable facts.
In which cases is dismissal on personal grounds possible?
Dismissal is possible when it is based on a real and serious cause.
This implies that the grounds invoked must be based on concrete, verifiable facts that are significant enough to make it difficult to continue the employment relationship.
Two main categories of grounds can be distinguished:
- Disciplinary dismissal on personal grounds, related to misconduct or a breach of duty by the employee.
- Non-disciplinary dismissal on personal grounds, related to the employee’s personal situation, without any misconduct on their part.
Certain grounds render a dismissal void.
Certain justifications can never be used to justify a dismissal. This applies, in particular, to a dismissal issued:
- On discriminatory grounds (gender, age, health status, disability, etc.).
- In violation of a fundamental freedom (right to strike or freedom of expression).
- In disregard of protections related to maternity or paternity.
- In violation of protections related to occupational accidents or illnesses.
- In violation of the protection granted to protected employees (e.g. union representatives).
- Due to the death of a child under 25 or a permanent dependent under 25.
- For having reported, testified to or been a victim of moral or sexual harassment.
- For having reported or testified, in good faith, to facts constituting a crime or offense (whistleblowing).
A dismissal issued under these conditions may be overturned (annulled) by a judge.
What is covered by disciplinary grounds?
Disciplinary grounds are based on an employee’s misconduct.
The employer may initiate disciplinary proceedings when they consider that the employee is not performing their employment contract under normal conditions. Examples include failure to follow internal rules, breach of a contractual obligation, or inappropriate behavior.
The severity of the misconduct determines the consequences regarding the employee’s continued presence in the business and their entitlements.
Simple misconduct (faute simple) corresponds to a breach of the employee’s obligations. It does not make their continued presence in the business impossible, but it can justify a dismissal.
Serious misconduct (faute grave) makes the employee’s continued presence in the business impossible, including during the notice period. It may lead to administrative leave pending dismissal while the dismissal procedure is underway.
Gross misconduct (faute lourde) implies an intent to harm the employer. It results in the immediate termination of the employment contract.
The scale of disciplinary sanctions
In France, dismissal is the most severe disciplinary sanction, but it is not the only measure possible. Depending on the rules applicable within the business, other sanctions may be issued. When internal regulations exist, they specify the scale of applicable disciplinary sanctions, which can range from a warning up to dismissal.
What is covered by non-disciplinary grounds?
Non-disciplinary grounds are based on the employee’s situation, without any misconduct on their part.
Dismissal may be justified by an objective inability to maintain the employment relationship. This may notably concern:
- Professional inadequacy.
- Incapacity, established according to the applicable procedure.
- Repeated or prolonged absences that disrupt the organization and operation of the business, subject to specific conditions.
In certain cases, the refusal to accept a modification to the employment contract may also constitute grounds for dismissal on personal grounds.
What procedure for dismissal on personal grounds?
In France, dismissal on personal grounds must follow a precise procedure. If not, it can be challenged, even if the underlying motive is valid.
The procedure consists of three main steps:
- Summoning the employee to a preliminary dismissal interview.
- Holding the preliminary interview, allowing the employer to explain the proposed grounds and the employee to present their explanations.
- Written notification of dismissal, with a clear and precise statement of the grounds for the decision.
The employer summons the employee to a preliminary interview in writing. This summons is generally sent by registered letter or delivered by hand against a signed receipt. It must inform the employee of the purpose of the interview, as well as the date, time and location of the meeting.
The preliminary interview allows the employer to outline the reasons that led to the initiation of the procedure and allows the employee to provide their explanations before any final decision on dismissal is made. This is an essential stage of the adversarial process.
The employee may be assisted by a staff representative.
The notification of dismissal takes place after a minimum waiting period. It must be done in writing and must contain the precise grounds for the decision justifying the termination of the employment contract.
Template letter for dismissal on personal grounds
Letter templates can be used to ensure the procedure is legally secure.
Discover these templates on the Ministry of Labor website.
What severance payments are due in the event of dismissal?
Payment of compensation depends on the employee’s situation and the grounds for dismissal.
Upon termination of the contract, several types of compensation may be due, notably based on seniority, the notice period and the classification of the misconduct.
Severance pay depends on the employee’s length of service and their reference salary. It may be excluded in cases of serious or gross misconduct, unless more favorable provisions apply.
The minimum legal severance pay is calculated based on the employee’s gross reference salary. It corresponds to:
- One-quarter of a month’s salary per year of service for the first 10 years;
- One-third of a month’s salary per year for each year thereafter (from the 11th year).
The reference salary used for the calculation corresponds to the most advantageous formula for the employee: either the monthly average of the last 12 months or the average of the last three months (with annual or exceptional bonuses included on a pro-rata basis).
When a collective agreement, the employment contract or business practice provides for a more favorable amount, then that compensation applies.
You can find the severance pay simulator on the Ministry of Labor website: Simulator – Calculating severance pay – Digital Labor Code
This is paid when the employee has not taken all the accrued leave as of the termination date. It remains due regardless of the cause of dismissal.
The amount is calculated based on the regulations applicable to paid leave, using the method most favorable to the employee:
- The 10% rule (one-tenth of total gross remuneration).
- The salary maintenance rule.
It is due when the employee does not work their notice period despite being entitled to do so. It corresponds to the remuneration they would have received during that period.
Can the employee receive unemployment benefits?
Dismissal generally entitles the employee to the return-to-work allowance (“allocation d’aide au retour à l’emploi” or ARE), provided they meet the compensation requirements and complete the necessary procedures. Eligibility depends on:
- Registering as a job seeker.
- The length of time they contributed to the system (affiliation period).
- Actively seeking employment.
- Other conditions provided for by unemployment insurance regulations.
Unemployment and business creation
An employee who starts or takes over a business may, under certain conditions, continue to receive the unemployment benefits (ARE). They may also benefit from ACRE (Support for Business Creators or Buyers), which temporarily reduces social security contributions, or ARCE (Support for Takeover and Business Creation), which allows them to receive a portion of their unemployment entitlements as a lump-sum capital payment.
What are the impacts of dismissal on residency rights?
Job loss can have varying consequences depending on the residence document held.
For affected employees, the effects of dismissal depend on the type of permit and the situation at the time of renewal (see table below).
It is recommended to anticipate the permit renewal process without delay, as well as the supporting documents to be produced for the administration and, if applicable, the need for a new work authorization.
| Situation | Impact |
|---|---|
| Residence permit authorising any professional activity | The termination of the employment contract does not, in principle, have a direct impact on the right of residence. |
| “Employee” residence permit | If the employee changes employer, a new work permit may be required. In the event of involuntary unemployment, renewal of the residence permit may remain possible, subject to certain conditions. |
| Multi-year “Talent” residence permit | The impact depends on the category of permit and continued compliance with the conditions under which it was issued. A case-by-case assessment is required when renewing the permit or taking up new employment. |
At a glance
This page explains the rules applicable to dismissal for personal reasons in France and the conditions governing this procedure.. It is based on institutional sources such as the French Labour Code, Service-public.fr and employment-related bodies. It presents information covering disciplinary and non-disciplinary grounds, the dismissal procedure, and the related compensation and rights. It uses the example of an employer initiating a dismissal procedure based on a genuine and serious cause.