Understanding the cost of redundancy and the implications of the Macron redundancy scale

Introduction
Dismissing an employee represents a major decision for a company, both in human and financial terms. Since the introduction of the Macron scale in 2017, the legal framework governing prud'homale compensation for dismissal without real and serious cause has been profoundly modified. This article aims to provide a detailed analysis of the cost of a dismissal in France, focusing on the specific features of the Macron scale, its terms of application, its exceptions, as well as the legal debates it gives rise to.Cegedim Business Services+10Le Bouard Avocats+10Saisir Prud'Hommes+10
Components of redundancy costs
The cost of dismissal is not limited to the compensation paid to the employee. It encompasses several elements that the employer must anticipate:Yahoo Finance+13Berton & Associés+13Wikipédia+13
Statutory or contractual severance pay
Statutory redundancy pay is payable to employees on permanent contracts with at least 8 months' seniority, except in the case of serious or gross misconduct. It is calculated on the basis of the employee's length of service and reference salary. Certain collective bargaining agreements may provide for more favorable compensation.Wikipedia+5Wikipedia+5Wikipedia+5LeBouard Avocats+1Wikipedia+1
Compensation in lieu of notice
If the employee is excused from serving his notice period, the employer must pay him compensation equivalent to the remuneration he would have received during this period.Wikipedia
Compensatory vacation pay
It corresponds to days of leave earned but not taken by the employee at the time of termination of the contract.
Industrial tribunal compensation
In the event of dismissal without real and serious cause, the employee can take the matter to the industrial tribunal (Conseil de prud'hommes) to obtain damages. Since 2017, these indemnities are governed by the Macron scale.Berton & Associés+11Juritravail+11Le Bouard Avocats+11
Indirect costs
They include the costs associated with the procedure (lawyers, management time), the impact on the social climate, the loss of skills, and the time needed to recruit and train a replacement.
The Macron scale: origins and objectives
Introduced by Ordinance no. 2017-1387 of September 22, 2017, the Macron scale aims to provide a framework for industrial tribunal compensation in the event of dismissal without real and serious cause. The main objective is to secure labor relations by offering greater predictability to employers and harmonizing the decisions of industrial tribunals.Wikipedia+15Social management+15Le BouardAvocats+15Social management+2Le Bouard Avocats+2LegalPlace+2
The scale sets minimum and maximum compensation amounts depending on the employee's seniority and the size of the company. It applies to dismissals notified after September 23, 2017.Lefebvre Dalloz+7Litige.fr+7Berton & Associés+7ServicePublic+1Wikipedia+1
Application of the Macron scale
The scale distinguishes between two categories of company: those with fewer than 11 employees and those with 11 or more. For each category, minimum and maximum amounts are defined according to the employee's seniority.Juritravail+6Droit-Finances+6Wikipédia+6Berton& Associés+3Lefebvre Dalloz+3LegalPlace+3
Companies with 11 or more employees
Here is an extract from the applicable scale:julienreix-avocat.com
Length of service (full years) |
Minimum compensation (months' gross salary) |
Maximum compensation (months' gross salary) |
0 |
0 |
1 |
1 |
1 |
2 |
2 |
3 |
3,5 |
3 |
3 |
4 |
4 |
3 |
5 |
5 |
3 |
6 |
6 |
3 |
7 |
7 |
3 |
8 |
8 |
3 |
8 |
9 |
3 |
9 |
10 |
3 |
10 |
11 |
3 |
10,5 |
12 |
3 |
11 |
13 |
3 |
11,5 |
14 |
3 |
12 |
15 |
3 |
13 |
16 |
3 |
13,5 |
17 |
3 |
14 |
18 |
3 |
14,5 |
19 |
3 |
15 |
20 |
3 |
15,5 |
21 |
3 |
16 |
22 |
3 |
16,5 |
23 |
3 |
17 |
24 |
3 |
17,5 |
25 |
3 |
18 |
26 |
3 |
18,5 |
27 |
3 |
19 |
28 |
3 |
19,5 |
29 |
3 |
20 |
30 and over |
3 |
20 |
Companies with fewer than 11 employees
Amounts are slightly lower for smaller companies, particularly for employees with less than 11 years' seniority. Beyond that, amounts are aligned with those for larger companies.Wikipedia+1Le Bouard Avocats+1
Exceptions to the Macron scale
The Macron scale does not apply in certain situations where dismissal is considered null and void due to the seriousness of the grounds:Le Bouard Avocats+1Village de la Justice+1
- Discriminatory dismissal (origin, gender, sexual orientation, etc.).
- Dismissal in violation of a fundamental freedom (freedom of expression, trade union, etc.).Service Public+2Le Bouard Avocats+2Droit-Finances+2
- Dismissal for moral or sexual harassment.Service Public+2Village de la Justice+2Droit-Finances+2
- Dismissal of a protected employee without prior authorization.Village de la Justice
In such cases, the judge is free to set the amount of damages, with a minimum of 6 months' salary in the event of the employee's non-reinstatement.Saisir Prud'Hommes+3Village de la Justice+3Litige.fr+3
Debates and case law surrounding the Macron scale
Since its introduction, the Macron wage scale has given rise to numerous legal debates. Some courts have questioned its conformity with France's international commitments, in particular Convention 158 of the International Labour Organization (ILO) and the European Social Charter.Saisir Prud'Hommes+2Gestion sociale+2Litige.fr+2Droit-Finances+2LeBouard Avocats+2Saisir Prud'Hommes+2
However, the French Supreme Court (Cour de cassation) validated the application of the scale in several rulings, notably on May 11, 2022, ruling that it did not contravene France's international commitments. It reaffirmed this position in rulings handed down on April 9, 2025, censuring the decisions of appeal courts that had rejected the scale.Litige.fr+3Compta Online+3Saisir Prud'Hommes+3Villagede la Justice
Source : Le barème Macron à l'épreuve de critiques persistentesLitige.fr+4Village de la Justice+4Le Bouard Avocats+4
Using the official simulator
To estimate the amount of compensation payable to the industrial tribunal in the event of dismissal without real and serious cause, the government has set up an online simulator. It gives the minimum and maximum amounts applicable, depending on the employee's length of service and the size of the company.Village de la Justice+11Saisir Prud'Hommes+11Service Public+11ServicePublic+9Berton & Associés+9Litige.fr+9
Access the simulator : Service-Public.frServicePublic
Practical implications for HR departments
A precise knowledge of the Macron scale is essential for HRDs in order to .
- Anticipating the potential cost of redundancy.julienreix-avocat.com
- Assess the legal risks involved in a dismissal procedure.
- Negotiate contractual severance agreements with full knowledge of the facts.
- Prepare HR budgets, including any allowances to be paid.
Conclusion
The Macron scale has profoundly altered the legal landscape of dismissal in France, by introducing ceilings and floors for prud'homale compensation.