Hiring and Dismissing Employees in France: Key Points to Know
France’s Labour Code is designed to protect employees. As a result, both hiring and dismissal are subject to strict rules that must be carefully followed. Here is an overview of the key principles and formalities to be aware of.
Hiring
The legal framework for job postings
French law recognises 26 discriminatory grounds in the context of employment, including origin, gender, sexual orientation, age and health status. Writing a job posting therefore requires a factual approach, avoiding any reference to these protected characteristics. Job titles should be written in both the masculine and feminine form, or with the mention M/F.
The job interview
Job interviews can take various forms and do not need to be conducted in person.
As a general rule, Article L. 1221-6 of the Labour Code states that information discussed during an interview must have a direct and necessary link with the position offered or with the assessment of professional skills. Questioning a candidate about their personal, marital or social situation is prohibited, as are questions relating to physical appearance, health or disability.
Post-recruitment formalities
Once a candidate has been selected and the employment contract signed (a written contract is mandatory for fixed-term contracts), the following steps must be completed:
- Pre-employment declaration (DPAE): a mandatory formality that must be completed within the 8 days preceding the employee’s start date, via the Urssaf or net-entreprises.fr website.
- Occupational health appointment: must take place within 3 months of the employee’s start date.
- Registration with social protection bodies: supplementary pension, personal protection insurance and collective health cover.
- Provision of mandatory documents: a copy or acknowledgement of the DPAE, a copy of the employment contract, the occupational health appointment notice, and any documentation relating to the employee’s enrolment with the relevant social bodies.
Payroll Management
As an employer paying remuneration to your employees, you are required to provide them with a payslip. Certain information must appear on this document (see the full list on travail-emploi.gouv.fr). Other mentions, such as those relating to the exercise of the right to strike or employee representative activities, are prohibited.
Note: payslips may be issued electronically, unless the employee objects.
Dismissal
On what grounds can an employee be dismissed?
In France, all dismissals must be justified by a genuine and serious cause, which requires:
- Real and concrete facts, such as repeated unjustified absences or breaches of contractual obligations
- Precise and verifiable evidence
- A demonstrated impact on the organisation
There are three levels of disciplinary misconduct that may justify terminating a permanent contract (CDI):
Minor misconduct: conduct that goes against the employee’s obligations but does not seriously affect the business, for example, negligence or repeated lateness.
Serious misconduct: conduct that makes it impossible to retain the employee, such as theft, harassment or wilful insubordination.
Gross misconduct: conduct of particular gravity with intent to harm the employer, such as misappropriation of funds, abusive language or disclosure of confidential information.
Note: an employer may also dismiss an employee without any disciplinary fault, provided the cause remains genuine and serious. Non-disciplinary grounds include professional insufficiency, physical incapacity, or economic reasons (financial difficulty, cessation of activity or technological changes).
What procedure must be followed?
The dismissal procedure follows three steps: the notice of meeting, the preliminary interview, and the dismissal letter.
Notice of meeting: the employer must invite the employee to a preliminary interview by registered letter with acknowledgement of receipt, or hand-delivered against signature, at least 5 working days before the meeting.
Preliminary interview: the employer or their representative meets with the employee to set out the grounds for the proposed decision and hear the employee’s response. The employee may be accompanied by a person of their choice from within the company (legal representation is not permitted).
Dismissal letter: if the employer decides to proceed, the dismissal letter must be sent by registered post with acknowledgement of receipt — no earlier than 7 working days after the interview for economic dismissals, or 2 working days for all other types.
Severance Pay
Employees are entitled to statutory severance pay, including in cases of economic dismissal. This may not be less than one fifth of the monthly gross salary per year of service.
If the employer waives the notice period, a compensatory notice indemnity must be paid, equivalent to the remuneration the employee would have received had they continued working.
If the employee has unused paid leave at the time of termination, a compensatory holiday indemnity is also due.
Note: employees dismissed for serious or gross misconduct are not entitled to severance pay, unless otherwise stipulated in the applicable collective bargaining agreement.
Can a fixed-term employee be dismissed?
A fixed-term contract (CDD) may be terminated by mutual agreement. In the absence of agreement, early termination is only possible in cases of serious misconduct, force majeure, or incapacity certified by the occupational health doctor. The dismissal procedure described above must be followed.
