Economic dismissal: obligations of the employer
Verified 03 April 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister), Ministry of Labor
An employer who dismisses one or more employees for economic reasons must follow a specific procedure. We present you the rules and the steps to follow.
FYI
An economic dismissal may be initiated by a company when it encounters difficulties linked to the company's situation and not related to the employee himself.
In the event of job termination or conversion, or where the employee refuses a proposal to amend an essential element of his contract (qualification, working hours, etc.), the situation is in principle a matter for framework for economic redundancy.
Dismissal on economic grounds must be motivated and justified by a genuine and serious cause.
Where the employer intends to dismiss for economic reasons, it must apply a procedure which depends on the number of employees involved by this dismissal.
Only one dismissed employee
The dismissal of a single employee for economic reasons must follow a supervised procedure.
Consultation of the CSE: titleContent is compulsory for individual dismissal only if it concerns a staff representative (protected employee).
Step-by-step approach
Even if the economic dismissal concerns only one employee, the employer must apply the termination order criteria provided for by collective agreement (branch agreement orcompany). If no agreement is reached, it applies the criteria it has set itself, taking into account the legal criteria.
These criteria (dependency, seniority of the employee, etc.) allowidentify the employee liable to be dismissed of all those in the professional category concerned.
Criteria for the order of dismissals
The employer must then investigate whether the employee can be reclassified to another position within the company and in the other companies of the group (located in France) of which the company is a member.
The positions available and likely to be occupied by the employee must be proposed to him in writing and precisely.
The employee's acceptance of a reclassification position terminates the dismissal procedure.
On the other hand, if no reclassification position is available or if the employee refuses the proposed positions, the employer may call him for a preliminary interview.
Duties to adapt and reclassify
Content of the summons
The employer must send the employee a notice for an interview prior to dismissal, by letter with RAR: titleContent or by hand-delivered letter against discharge.
The letter of invitation must indicate the following information:
- Purpose of the interview
- Date, time and place of interview
- Possibility for the employee to be assisted by a person of his choice belonging to the staff of the company (or by advisor to the employee outside the company if there are no staff representatives in the company)
- Contact details of the town hall and the labor inspectorate where the departmental list of the employee's advisers can be obtained.
Please note
The website of the Digital Labor Code offers a letter template of convening a prior interview.
The website of the Digital Labor Code offers a template for a letter of invitation to a prior interview:
Organization of the interview
A delay of 5 working days after the presentation of the registered letter or the delivery of the letter of convocation by hand must be respected before the holding of the preliminary interview.
During the interview, the employer must provide the employee with the following information:
- The specific statement of the economic reason for the decision
- The possibility of benefiting from professional security contract - CSP (delivery of the information document accompanied by the acceptance form) or reclassification leave, depending on the company's workforce.
Pre-interview
The employer must send a letter of termination to the employee, by letter with RAR: titleContent after a minimum period of 7 working days following the interview. The deadline is set at 15 working days in the event of individual dismissal of an executive.
Warning
If the dismissal concerns a protected employee, the employer must obtain a authorization prior to the labor inspection.
The letter must include all of the following information:
- Economic reason for dismissal
- If necessary, the impossibility of reclassification
- Possibility to benefit from a professional security contract (CSP) (company of less than 1,000 employees), if the employee has not yet given his answer
- Possibility to benefit from a reclassification leave (if the company employs at least 1,000 employees)
- Possibility of benefiting from rehire priority during one year from the date of the breach of the contract and the conditions for its implementation
- Limitation period to challenge the lawfulness or validity of the dismissal: 12 months from its notification.
Please note
The website of the Digital Labor Code offers several templates for letters of dismissal for economic reasons, to be used as appropriate:
- Letter of economic dismissal sent as a precautionary measure - CSP
Letter of economic dismissal sent as a precautionary measure - CSP: template for the employer
- Letter of economic dismissal sent on a final basis - CSP
Final economic termination letter - CSP: template for the employer
- Letter of termination in case of membership of a CSP
Template letter - Economic dismissal: letter of termination in case of membership of a CSP
- Economic termination letter with prior interview - Redeployment Leave
Template Letter - Economic Termination Letter with Prior Interview - Reclassification Leave
In the 15 days following the notification upon dismissal, the employee may ask the employer for details of the economic reasons set out in the dismissal letter. The employee applies by letter with RAR: titleContent or delivery against receipt.
The employer has a period of 15 days after receiving the employee's request to provide details if he wishes. He communicates these details to the employee by letter with RAR: titleContent or delivery against receipt.
Within a period of 15 days following notification of the dismissal, the employer may, at its initiative, specify the reasons for the dismissal to the employee by letter with RAR: titleContent or delivery against receipt.
Letter of dismissal
Clarification of the ground for dismissal
The employer must inform the Dreets: titleContent of economic dismissal within 8 days after the dismissal letter has been sent to the employee.
Who shall I contact
Information to the administrative authority
After the advance notice (if the employee has done so), the employment contract ends.
FYI
The notice of dismissal is the time limit which elapses between the notification of the termination of the contract and the end date of the employment contract.
However, the employee does not give notice in the following 2 cases:
- Either he is exempted from making his notice by the employer
- Either he accepted a professional security contract (CSP), one reclassification leave or a mobility leave
On the date of termination of the contract, the employer shall pay to the employee, if he is entitled to it, the following amounts:
- Severance pay
- Compensatory allowances from advance notice and paid leave
- Financial consideration provided in the event of non-compete clause.
The employer must also make available to the employee end of contract documents mandatory.
Please note
The dismissed employee may register in France Work as a jobseeker and collect unemployment benefit for assistance in returning to work (ARE), if he is entitled to it.
From 2 to 9 employees
The employer who has to make the collective redundancy, for economic reasons, 2 to 9 employees over a period 30 days, shall follow the following steps:
Step-by-step approach
When the CSE has been set up, the employer must assemble and consult the employer before proceeding with the dismissals of less than 10 employees in the same period of 30 days. This consultation concerns the proposed redundancy and its conditions of application.
The convocation must be addressed at least 3 days before the meeting.
The employer must also send with the summons:
- All relevant information on the proposed collective redundancy (economic, financial or technical reasons for the redundancy, number of planned redundancies, relevant occupational categories, projected timetable)
- Measures envisaged to limit redundancies and to facilitate the reclassification of the employees concerned.
Please note
Where the CSE could not be established, the employer must establish a notice of deficiency. A dismissal which is pronounced in a company without CSE, and of minutes of deficiency, would be irregular.
The meeting must relate to next points :
- Presentation and explanations on the economic redundancy project
- Answering questions from staff representatives before seeking their views on the project.
Please note
In companies with at least 50 employees, the CSE may, at its own expense, be assisted by a chartered accountant or an authorized (or certified) expert.
The EESC must deliver its opinion within a period of1 month maximum from the date of the first meeting at which it was consulted.
Consultation of staff representatives
The employer must apply the termination order criteria provided for by collective agreement (branch agreement orcompany). If no agreement is reached, it applies the criteria it has set itself, taking into account the legal criteria.
These criteria (dependency, seniority of the employee, etc.) allowidentify the employee liable to be dismissed of all those in the professional category concerned.
Criteria for the order of dismissals
The employer must then investigate whether reclassification to other positions is possible within the company and in the other companies of the group (located in France), of which the company is a member.
The available positions must be offered to employees in writing and in a precise manner.
Acceptance by an employee of a reclassification post shall terminate the dismissal procedure.
On the other hand, if no reclassification position is available or if an employee refuses all the positions proposed, the employer may call him for a preliminary interview.
Duties to adapt and reclassify
Content of the summons
The employer must send each employee a notice for an interview prior to dismissal by letter with RAR: titleContent or by hand-delivered letter against discharge.
The letter of invitation must indicate the following information:
- Purpose of the interview
- Date, time and place of interview
- Possibility for the employee to be assisted by a person of his choice belonging to the staff of the company (or by advisor to the employee outside the company if there are no staff representatives in the company)
- Contact details of the town hall and the labor inspectorate where the departmental list of the employee's advisers can be obtained.
Please note
The website of the Digital Labor Code offers a template for a letter of invitation to a prior interview:
Organization of the interview
A delay of 5 working days after the presentation of the registered letter or the delivery of the letter of convocation by hand must be respected before the holding of the preliminary interview.
During the interview, the employer must provide the employees with the following information:
- The specific statement of the economic reason for the decision
- Possibility to benefit from a professional security contract - CSP (delivery of the information document accompanied by the acceptance form) or reclassification leave, depending on the company's workforce.
The employer must send a letter of termination to each employee, by letter with RAR: titleContent after a minimum period of 7 working days following the interview.
Warning
If the dismissal concerns a protected employee, the employer must obtain a authorization prior to the labor inspection.
The letter must include all of the following information:
- Economic reason for dismissal
- If necessary, the impossibility of reclassification
- Possibility to benefit from a professional security contract (CSP) (company of less than 1,000 employees), if the employee has not yet given his answer
- Possibility to benefit from a reclassification leave (if the company has at least 1,000 employees)
- Possibility of benefiting from rehire priority during one year from the date of termination of the contract and the conditions for its implementation
- Limitation period to challenge the lawfulness or validity of the dismissal: 12 months from its notification.
Please note
The website of the Digital Labor Code offers several templates for letters of dismissal for economic reasons, to be used as appropriate:
- Letter of economic dismissal sent as a precautionary measure - CSP
Letter of economic dismissal sent as a precautionary measure - CSP: template for the employer
- Letter of economic dismissal sent on a final basis - CSP
Final economic termination letter - CSP: template for the employer
- Letter of termination in case of membership of a CSP
Template letter - Economic dismissal: letter of termination in case of membership of a CSP
- Economic termination letter with prior interview - Redeployment Leave
Template Letter - Economic Termination Letter with Prior Interview - Reclassification Leave
In the 15 days following the notification upon dismissal, the employee may ask the employer for details of the economic reasons set out in the dismissal letter. The employee applies by letter with RAR: titleContent or delivery against receipt.
The employer has a period of 15 days after receiving the employee's request to provide details if he wishes. He communicates these details to the employee by letter with RAR: titleContent or delivery against receipt.
Within a period of 15 days following notification of the dismissal, the employer may, at its initiative, specify the reasons for the dismissal to the employee by letter with RAR: titleContent or delivery against receipt.
Letter of dismissal
Clarification of the ground for dismissal
The employer must inform the Dreets: titleContent of economic dismissal within 8 days after the dismissal letter has been sent to the employee.
A portal allows the dematerialized transmission information in the context of economic redundancies:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
Information to the administrative authority
After the advance notice (if the employee has done so), the employment contract ends.
FYI
The notice of dismissal is the time limit which elapses between the notification of the termination of the contract and the end date of the employment contract.
However, the employee does not give notice in the following 2 cases:
- Either he is exempted from making his notice by the employer
- Either he accepted a professional security contract (CSP), one reclassification leave or a mobility leave.
On the date of termination of the contract, the employer shall pay to the employee, if he is entitled to it, the following amounts:
- Severance pay
- Compensatory allowances from advance notice and paid leave
- Financial consideration provided in the event of non-compete clause.
The employer must also make available to the employee end of contract documents mandatory.
Please note
The dismissed employee may register in France Work as a jobseeker and collect unemployment benefit for assistance in returning to work (ARE), if he is entitled to it.
From 10 employees
The employer who must make the collective dismissal of 10 or more employees on a 30-day period for economic reasons, several steps must be followed.
Step-by-step approach
The consultation procedure depends on the size of the company.
Less than 50 employees
When the ESC has been set up, the employer must assemble and consult the employer before proceeding with the dismissals of 10 or more employees in the same period of 30 days. This consultation concerns the proposed redundancy and its conditions of application.
The ESC must be obliged to 2 meetings separated by a maximum period of 14 days.
The employer shall send the following information to the staff representatives, together with the convening of the meeting:
- All relevant information on the proposed collective redundancy (e.g. economic, financial or technical reasons for the redundancy, number of redundancies envisaged, relevant occupational categories, provisional timetable)
- Measures envisaged to limit redundancies and to facilitate the reclassification of the employees concerned.
The summons must be addressed at least 3 days before the meeting.
The meeting should address the following issues:
- Presentation and explanations on the economic redundancy project
- Answering questions from staff representatives before seeking their views on the project.
The employer must also notify the Dreets: titleContent the following:
- Proposed dismissal (at the earliest the day after 1re EESC meeting)
- Minutes of meetings.
A portal allows the dematerialized transmission information in the context of economic redundancies:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
From 50 employees
Mandatory establishment of an PES
The company must put in place a job protection plan (PES) in the following situations:
- Dismissals for economic reasons ofat least 10 employees over a period 30 days
- More than 10 economic redundancies have already been pronounced over 3 consecutive months, without ever reaching 10 employees over 30 days
- More than 18 redundancies have already been pronounced in a calendar year, without any obligation to set up an PES.
Procedure
The employer must consult the CSE: titleContent on the proposed transaction and its conditions of application.
In this context, 2 meetings at least, spaced apart of at least 15 days, must be organized by the employer (except in the case of receivership or liquidation).
The employer shall send to the staff representatives all relevant information on the collective redundancy plan: economic, financial or technical reasons for the redundancy, number of redundancies envisaged, occupational categories concerned, provisional timetable.
The summons must be addressed at least 3 days before the meeting.
The employer must also inform the employee representatives and the Dreets: titleContent, using the RUPCO portal, all information concerning the redundancy plan.
The EESC must deliver its opinion within a certain period of time from its first meeting:
- 2 months where the number of redundancies is less than 100
- 3 months for a number of redundancies between 100 and 249 included
- 4 months from 250 redundancies.
In the absence of an opinion within these deadlines, the EESC is considered to have been consulted.
A collective labor agreement or agreement may provide for different deadlines.
The employer may:
- Either negotiate with the representative unions a majority collective agreement on a PES
- Or unilaterally set the content of the PES and the criteria for consulting staff representatives
In both cases, the CSE may appoint a public accountant. The employer has 10 days to request information from the employer. The latter must respond within 8 days. The expertise may cover the economic and accounting fields, health, safety or the potential effects of the project on working conditions.
The employer must also notify the Dreets: titleContent the following:
- Proposed dismissal (at the earliest the day after the 1st meeting of the ESC)
- Use of a chartered accountant
- Minutes of meetings.
After consulting the CSE, the employer asks Dreets to validate the content of the PSE.
The administration has 15 days to validate the collective agreement or 21 days to validate the unilateral document prepared by the employer.
A portal allows the dematerialized transmission information in the context of economic redundancies:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
CSE consultation (dismissal of 10 employees minimum over 30 days)
Validation or approval of the PSE by Dreets
The employer must apply the termination order criteria provided for by collective agreement (branch agreement orcompany, possibly including the PSE).
If no agreement is reached, it applies the criteria it has set itself, taking into account the legal criteria.
These criteria (dependency, seniority of the employee, etc.) allowidentify the employee liable to be dismissed.
Criteria for the order of dismissals
The employer must then carry out a search for reclassification within the company and in the other companies of the group (located in France), of which the company is a part.
The available positions must be offered to employees in writing and in a precise manner.
Acceptance by an employee of a reclassification post shall terminate the dismissal procedure.
On the other hand, if no reclassification position is available or if an employee refuses all the positions offered, the employer may propose to the employee to benefit from a professional security contract - CSP(delivery of the information document accompanied by the acceptance form) or reclassification leave , depending on the company's workforce.
Duties to adapt and reclassify
If a CSE: titleContent is set up in the company, the employer is not obliged to call for a prior interview each employee whose economic dismissal is envisaged.
However, in the absence of CSE in the company, the prior interview for each employee concerned is mandatory.
Warning
Where the economic dismissal of one or more protected employees is envisaged, prior maintenance is mandatory.
Summons
The employer must send the employee a notice for an interview prior to dismissal by letter with RAR: titleContent or by hand-delivered letter against discharge.
The letter of invitation must indicate the following information:
- Purpose of the interview
- Date, time and place of interview
- Possibility for the employee to be assisted by a person of his choice belonging to the staff of the company (or by advisor to the employee outside the company)
- Contact details of the town hall and the labor inspectorate where the departmental list of the employee's advisers can be obtained.
Organization of the interview
The pre-service can not take place less than 5 working days after the presentation of the registered letter or the delivery of the letter of invitation by hand.
During the interview, the employer must inform the employees of the following:
- Reasons for decision
- Possibility to benefit from a professional security contract - CSP (delivery of the information document accompanied by the acceptance form) or a reclassification leave, depending on the company's workforce.
The employer must send to the employees, by letter with RAR: titleContent, a letter of dismissal which shall specify the following information:
- Economic reason for dismissal
- If necessary, the impossibility of reclassification
- Possibility to benefit from a professional security contract (CSP) (company of less than 1,000 employees), if the employee has not yet given his answer
- Possibility to benefit from a reclassification leave (if the company employs at least 1,000 employees)
- Possibility of benefiting from rehire priority during one year from the date of termination of the contract and the conditions for its implementation
- Limitation period to challenge the lawfulness or validity of the dismissal: 12 months from its notification.
The time to send of the letter of dismissal depends of thecompany staff :
Répondez aux questions successives et les réponses s’afficheront automatiquement
Company with less than 50 employees
The letter of dismissal must be sent to the employees after a period of 30 days following notification of the proposed dismissal to the Dreets: titleContent.
Please note
However, a collective agreement or a company collective agreement may provide for more favorable periods for employees.
Company of 50 or more employees
The dismissal letter must be addressed to the employees:
- After notification of validation or approval of job protection plan (PES)by the Dreets: titleContent.
- Or on expiry of the time limits laid down for the Dreets: titleContent pronounced (15 or 21 days).
Please note
However, a collective agreement or a company collective agreement may provide for more favorable periods for employees.
If the employer does not comply with the notification deadlines, the employee can claim the reparations provided for irregular dismissal.
Please note
The website of the Digital Labor Code offers several templates for letters of dismissal for economic reasons, to be used as appropriate:
- Letter of economic dismissal sent as a precautionary measure - CSP
Letter of economic dismissal sent as a precautionary measure - CSP: template for the employer
- Letter of economic dismissal sent on a final basis - CSP
Final economic termination letter - CSP: template for the employer
- Letter of termination in case of membership of a CSP
Template letter - Economic dismissal: letter of termination in case of membership of a CSP
- Letter of Economic Termination without Prior Maintenance - Redeployment Leave
Template Letter - Letter of Economic Termination Without Prior Maintenance - Reclassification Leave
- Economic termination letter with prior interview - Redeployment Leave
Template Letter - Economic Termination Letter with Prior Interview - Reclassification Leave
Letter of dismissal
Clarification of the ground for dismissal
After the advance notice (if the employee has done so), the employment contract ends.
FYI
The notice of dismissal is the time limit which elapses between the notification of the termination of the contract and the end date of the employment contract.
However, the employee does not give notice in the following 2 cases:
- Either he is exempted from making his notice by the employer
- Either he accepted a professional security contract (CSP), one reclassification leave or a mobility leave.
On the date of termination of the contract, the employer shall pay to the employee, if he is entitled to it, the following amounts:
- Severance pay
- Compensatory allowances from advance notice and paid leave
- Financial consideration provided in the event of non-compete clause
The employer must also make available to the employee end of contract documents mandatory.
Please note
The dismissed employee may register in France Work as a jobseeker and collect unemployment benefit for assistance in returning to work (ARE), if he is entitled to it.
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- Departmental Directorate in charge of Employment, Labor and Solidarity (DDETS or DDETS-PP, former Director)
Definition of economic motive
Duties to adapt and reclassify
Criteria for the order of dismissals
Consultation of staff representatives (dismissal of less than 10 employees over 30 days)
Prior maintenance (less than 10 employees)
Letter of dismissal
CSE consultation (dismissal of 10 employees minimum over 30 days)
Information to the administrative authority (dismissal of less than 10 employees)
Application of the procedure for dismissal of 10 or more employees in the event of successive dismissals
Prior maintenance (at least 10 employees)
Information to the administrative authority (dismissal of at least 10 employees)
ESC consultation for the general company march
Consultation CSE dismissal staff representative
Notification of dismissal
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