Dismissal: procedure, compensation and employee rights in 2026
05 June 2026 · 4 min reading time
Join Staffmatch
See job offersSummarize this article with
Receiving a summons to a preliminary interview can be a destabilizing experience. Between financial concerns, the fear of losing their job and questions about their rights, an employee can quickly feel helpless when faced with a dismissal procedure they do not fully understand.
However, dismissal is strictly governed by the French Labour Code. An employer cannot terminate an employment contract without a valid reason, nor without following a specific procedure. Personal grounds, economic grounds, gross misconduct, serious misconduct, notice period, dismissal compensation, unemployment benefits, end-of-contract documents, appeals before the employment tribunal: here is what an employee needs to know to understand their rights in 2026.
What is dismissal?
Dismissal refers to the termination of an employment contract decided by the employer. It mainly concerns employees on a permanent contract, as the end of a fixed-term contract or a temporary work assignment follows different rules.
To be valid, an employee dismissal must be based on a real and serious cause. The reason given must therefore be objective, verifiable and sufficiently important to justify the termination of the employment contract. Otherwise, the employee may challenge the decision before the employment tribunal.
Dismissal must also be distinguished from other forms of contract termination. Resignation comes from the employee and does not automatically entitle them to unemployment benefits. A mutual termination agreement, on the other hand, is based on an agreement between the employer and the employee. It gives rise to a specific compensation payment and may open entitlement to unemployment benefits when the conditions are met.
What are the different types of dismissal?
There are two main categories of dismissal: dismissal on personal grounds and economic dismissal.
Dismissal on personal grounds is based on an element related to the employee themselves. This may involve misconduct, professional inadequacy, unfitness for work established by the occupational physician, or repeated absences that genuinely disrupt the company’s operations.
Economic dismissal, on the other hand, is not based on the employee’s conduct. It may be linked to economic difficulties, a job elimination, a change in the position, a reorganisation needed to preserve the company’s competitiveness, or the cessation of business activity. Before using this type of dismissal, the employer must look for redeployment opportunities whenever possible.
In both cases, the employer must be able to justify the decision with concrete evidence. An unclear, insufficient or discriminatory reason may allow the employee to challenge the termination.
What should you do when you receive a summons to a preliminary interview?
Receiving a summons to a preliminary interview does not mean that the dismissal has already been decided. At this stage, the employer is considering terminating the contract, but must still explain the reasons to the employee and hear their explanations during the interview.
The first thing to do is to check the date on which the summons was received. A minimum period of 5 working days must be respected between the presentation of the letter and the date of the interview. The day the letter is presented and the day of the interview are not included in this period.
This timeframe allows the employee to prepare their defence, review the facts being alleged, gather useful documents and choose someone to assist them. Before the interview, it is advisable to prepare a simple timeline of events, keep important written exchanges, and review the employment contract, the collective bargaining agreement and recent payslips.
The employee may be accompanied during the interview. If there are employee representatives in the company, they may be assisted by one of them. If there are no employee representatives, they may call on an employee adviser. This support is free of charge and helps the employee avoid facing the employer alone.
Simple misconduct, gross misconduct, serious misconduct: what are the consequences?
When a dismissal is based on misconduct, the level of seriousness has direct consequences on the employee’s rights.
Simple misconduct refers to a breach that is serious enough to justify dismissal, without preventing the employee from remaining in the company during their notice period. The employee therefore retains their usual rights, including the notice period and dismissal compensation if they meet the seniority requirements.
Gross misconduct makes it impossible for the employee to remain in the company, even during the notice period. It therefore deprives the employee of the notice period and the statutory dismissal compensation.
Serious misconduct implies an intention to harm the employer. It is rarer and more difficult to prove. Like gross misconduct, it deprives the employee of the notice period and dismissal compensation.
In all cases, the compensatory paid leave allowance remains due if the employee leaves the company with accrued but unused paid leave. This also applies in cases of gross misconduct or serious misconduct.
What rights apply depending on the reason for dismissal?
The reason for dismissal directly affects the amounts paid at the time of termination. To avoid confusion, here are the main rights to check.
| Reason for dismissal | Notice period | Dismissal compensation | Unused paid leave | Unemployment benefits |
|---|---|---|---|---|
| Simple misconduct or dismissal without misconduct | Yes, unless waived | Yes, if seniority is sufficient | Yes | Yes, if conditions are met |
| Gross misconduct | No | No | Yes | Yes, if conditions are met |
| Serious misconduct | No | No | Yes | Yes, if conditions are met |
| Economic dismissal | Yes, unless specific situation applies | Yes, if seniority is sufficient | Yes | Yes, if conditions are met |
This table helps distinguish between financial rights linked to the employment contract and rights to unemployment benefits. Even when an employee loses their notice period or dismissal compensation, dismissal remains an involuntary loss of employment. The type of dismissal, including gross or serious misconduct, has no direct impact on entitlement to ARE unemployment benefits when the other conditions are met.
What dismissal procedure must be followed?
The dismissal procedure depends on the reason given, but some steps are essential, particularly in cases of dismissal on personal grounds.
The employer must first summon the employee to a preliminary interview. This summons may be sent by registered letter with acknowledgement of receipt or handed over in person against receipt. It must state the purpose of the interview, the date, time and place, as well as the employee’s right to be assisted.
After the interview, the employer cannot send the dismissal letter immediately. For dismissal on personal grounds, the employer must wait at least 2 working days. In the case of disciplinary dismissal, the letter must also be sent within a maximum period of one month after the preliminary interview.
For an individual economic dismissal, the deadline for sending the letter is different. The employer must respect a minimum period of 7 working days after the preliminary interview, or 15 working days if the employee is an executive.
The dismissal letter is a key document. It sets out the reasons for the termination. In the event of a dispute, the judge will mainly examine the reasons stated in this letter. If the reasons are too vague, the employee may request clarification within 15 days of being notified of the dismissal.
What notice period applies after dismissal?
After receiving the dismissal letter, the employee must in principle serve a notice period. During this period, they continue to work and are paid as usual.
The duration of the notice period depends on seniority, the employment contract, the collective bargaining agreement and the employee’s status. Some collective agreements may provide more favourable notice periods than the legal minimum.
The employer may waive the employee’s requirement to work during the notice period. In this case, the employee does not work but receives compensatory notice pay corresponding to the pay they would have received if they had worked until the end of the notice period. In cases of gross misconduct or serious misconduct, the employee is not entitled to a notice period.
What compensation is paid after dismissal?
The final settlement may include several sums. It is important to distinguish between them, as they do not all follow the same rules.
The statutory dismissal compensation is due to an employee on a permanent contract who has at least 8 months of uninterrupted seniority with the same employer, except in cases of gross misconduct or serious misconduct. Its amount depends on the reference salary and the employee’s seniority.
Compensatory notice pay is paid when the employer waives the employee’s requirement to work during the notice period. The compensatory paid leave allowance corresponds to accrued leave days not taken at the time of departure.
Other amounts may also appear in the final settlement: salary for the current month, contractual bonuses, unpaid overtime, compensation linked to a non-compete clause, or an adjustment provided for by the collective bargaining agreement.
How is dismissal compensation calculated in 2026?
The calculation of dismissal compensation is based on two elements: the employee’s seniority and their reference salary.
The reference salary is determined according to the formula that is most favourable to the employee: either the monthly average over the last 12 months, or the average over the last 3 months. Certain bonuses must be included in the calculation when they are regular in nature.
The statutory scale is as follows: 1/4 of a month’s salary per year of seniority up to 10 years, then 1/3 of a month’s salary per year of seniority from the 11th year onwards.
| Seniority | Statutory formula | Example with a reference salary of €2,500 |
|---|---|---|
| 3 years | 1/4 of a month per year | €1,875 |
| 6 years | 1/4 of a month per year | €3,750 |
| 10 years | 1/4 of a month per year | €6,250 |
| 12 years | 1/4 of a month for 10 years, then 1/3 thereafter | €7,916.67 |
This amount corresponds to the legal minimum. If the collective bargaining agreement provides for a more favourable contractual dismissal compensation, that amount must apply. The employee should therefore check their collective bargaining agreement before signing their final settlement.
Is dismissal compensation taxable?
Dismissal compensation benefits from favourable tax treatment, but it is not always fully exempt when the amount exceeds certain thresholds.
The compensation may be exempt from income tax within certain limits. The exemption depends in particular on the amount of the statutory or contractual compensation, the total amount paid and the gross annual remuneration received the previous year.
In 2026, the annual Social Security ceiling is set at €48,060. The 6 PASS ceiling therefore corresponds to €288,360, while the 2 PASS ceiling corresponds to €96,120.
In most situations, employees receive dismissal compensation that is fully or largely exempt. However, when the amount paid is high, particularly as part of a negotiation or the departure of an executive, taxation and social security contributions may have a real impact on the net amount received.
Can you receive unemployment benefits after dismissal?
Dismissal is considered an involuntary loss of employment. It may therefore open entitlement to unemployment benefits, provided the employee meets the eligibility conditions set by France Travail.
The employee must in particular register with France Travail, be actively seeking employment and prove a minimum period of work. The amount and duration of the benefit then depend on their previous professional situation.
This point is important because unemployment benefits do not depend only on the reason for dismissal. An employee dismissed for gross misconduct or serious misconduct may therefore receive benefits if they meet the conditions for accessing ARE unemployment benefits.
What documents must the employer provide at the end of the contract?
At the end of the employment contract, the employer must provide the employee with several essential end-of-contract documents.
The work certificate confirms the period worked in the company. The France Travail certificate is essential to open or assess rights to unemployment benefits. The final settlement receipt summarises the amounts paid upon departure. The final payslip also makes it possible to check salary, compensation, paid leave and any adjustments.
These documents must be checked carefully. An error on the France Travail certificate can delay the opening of unemployment rights. An error in the final settlement can also result in financial loss for the employee.
Can you refuse to sign the final settlement?
The final settlement receipt summarises the amounts paid to the employee at the end of the contract. The employee is not required to sign it, and refusing to sign does not prevent the payment of sums due.
If the employee signs the receipt, they may still challenge the amounts stated, but they must do so within 6 months of signing.
In practice, it is better to review the document carefully before signing. If there is any doubt about missing compensation, a bonus or paid leave, the employee may request written explanations from the employer or seek support.
Unfair, irregular or void dismissal: what is the difference?
A dismissal challenged before the employment tribunal may be classified in several ways. These concepts are often confused, although they do not have the same consequences.
An irregular dismissal occurs when the employer has not followed the procedure, for example due to an issue with the summons, deadlines or the organisation of the preliminary interview. The reason for termination may still remain valid, even if the procedure can be challenged.
A dismissal without real and serious cause, often referred to as unfair dismissal, occurs when the reason given by the employer is not sufficiently precise, objective or serious to justify the termination of the employment contract. In this case, the judge may award compensation to the employee.
A void dismissal occurs when it is based on a prohibited reason or infringes a fundamental freedom. This may be the case in situations involving discrimination, harassment, infringement of the right to strike, or dismissal linked to the employee’s health condition.
How can an employee challenge a dismissal?
An employee may challenge their dismissal before the employment tribunal if they believe that the reason is invalid, that the procedure was not followed or that the termination is based on a prohibited reason.
The time limit for taking action is generally 12 months when challenging the termination of the employment contract. The French Court of Cassation clarified, in a ruling dated 21 May 2025, that this period starts from the employee’s receipt of the dismissal letter, and that the day of receipt is not included in the calculation of the deadline.
Before bringing a case before the employment tribunal, the employee should carefully review their dismissal letter, gather useful evidence and check the amounts paid in their final settlement. They may be assisted by a lawyer, a trade union representative or an employee adviser.
Similar articles
Latest News
Unemployment 2025: changes, conditions, and amounts
03 December 2025 · 4 min reading time
Unemployment insurance 2025: what are the new rules for job seekers? Monthly payments, conditions for seniors, return to employment, reinforced controls. The essential information to understand.
Labor Law
How to calculate mutual termination compensation in 2026?
12 March 2026 · 4 min reading time
Learn how to calculate mutual termination compensation in 2026, including the legal minimum amount and a practical example.
Labor Law
Non-compete clause: validity, case law and application
27 March 2026 · 4 min reading time
Can a non-compete clause really prevent you from working again? Here are the key rules to know in order to check whether it is valid.
Become a temp worker with Staffmatch!
OUR MOBILE APPS
Download the temp worker app
Download the business appDownload our temp worker appDownload our business app
Download the temp worker appDownload the business appDownload our temp worker appDownload our business app