French Supreme Court Validates Statutory Scale of Compensation for Unfair Dismissal Cases

Since September 24, 2017, the compensation to which employees are entitled in unjust dismissal actions in France has been governed by a statutory scale with minimum and maximum amounts. The amount of the severance, expressed in months of salary, varies depending on the employee's seniority and number of employees at the company.

Some local labour courts have refused to apply this scale. Many courts have held it is not compliant with article 10 of Convention 158 of the International Labour Organization, which states that the indemnification of an employee in case of unfair dismissal shall be adequate or appropriate.

In an opinion dated July 17, 2019, the French Supreme Court held that the provisions of the French labour code setting the compensation scale in unfair dismissal actions do, in fact, comply with various international agreements as well as Convention 158 of the International Labour Organization.

This opinion is not a ruling and is therefore not binding, but local labour courts will likely give it deference and apply the statutory scale of indemnification in unjust dismissal cases.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.