What compensation can an employee who has been dismissed for economic reasons receive?
Verified 01 June 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)
An employee dismissed for economic reasons may receive a severance payment if he meets certain conditions (in particular seniority) to be eligible. He may also receive compensation for notice and paid leave. We're taking stock of the regulations.
Yes, the employee may receive a severance pay if it meets the conditions, in particular seniority, enabling him to benefit from it.
Please note
In case of job protection plan (PES), an additional allowance, referred to as supralegalmay be paid to the employee. The amount of this allowance shall be determined after negotiation between the staff representatives and the employer.
The employee must in principle carry out a advance notice. He then receives his salary normally.
It may, however be dispensed with notice by the employer or ask not to perform it.
Compensation for this notice differs depending on the employee whether or not to give notice, accepts a professional security contract (CSP) or a reclassification leave :
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General case
Compensation for notice varies depending on whether the employee gives notice, asks the employer not to give notice, or is exempt:
The employee makes his notice
The employee receives a notice allowance corresponding to his usual salary.
The employee asks the employer not to give notice
If the employer agrees, the employee does not work. He does not receive compensation in lieu of notice.
The employee is exempted from notice by the employer
The employee does not work. The employer pays him a compensation for notice the salary he would have received had he worked during that period.
The employee accepts a CSP
The entitlement to the compensation for notice varies according to the seniority of the employee :
The employee has less than 1 year of seniority
The employee receives a compensation for notice.
The amount of the allowance corresponds to the salary that the employee should have received during his notice if he had refused the CSP.
The employee has 1 year of seniority or more
The employee does not receive compensation in lieu of notice.
The employment contract is terminated at the end of the 21-day cooling-off period calendars the employee has to accept the CSP.
The employer pays France Travail (formerly Pôle emploi) the equivalent of the notice allowance that the employee would have received if he had refused the CSP.
Please note
If the notice period is longer than 3 months, the employer pays the employee the portion of the notice indemnity exceeding the 3rd months from the end of his employment contract.
The employee accepts a redeployment leave
The reclassification leave is taken during notice. The employee is exempted from notice.
If the duration of the redeployment leave exceeds the period of notice, the end date of the notice shall be postponed until the end of the leave.
The compensation of the employee during the redeployment leave is different during the notice period and after the end of the notice period:
During the period of notice
The employer pays the employee a compensation for notice the salary he would have received had he worked during that period.
After the end of the notice
The employee receives a monthly allowance during this period. Its amount is at least equal to 65% of the average gross remuneration for the last 12 months preceding the notification of dismissal.
Allocation cannot be less than €1,586.96, or 85% from Smic: titleContent.
Where the employee has worked part-time as part of a parental education leave, of a caregiver leave, of a parental attendance leave or a family solidarity leave during the last 12 months prior to the commencement of the reclassification leave, his remuneration shall be calculated on the basis of a complete time.
The allowance is exempt from social contributions. It is, however, subject to social levies (to the CSG at a rate of 6.20% and the CRDS at a rate of 0.5%).
Each month, the employer provides the employee with a report card specifying the amount and method of calculating this allowance.
Yes, the employee shall receive a Compensatory allowance for paid leave if he has any earned paid leave that he has not been able to take.
Yes, the employee may receive a Return to Employment Assistance (RTA) or a professional security allowance (ASP).
However, they must meet the conditions set by France Travail (formerly Pôle emploi), in particular the minimum period of work and the nature of the last job held, in order to benefit from it.
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For information on unemployment compensation and procedures, please contact France Travail (formerly Pôle emploi)
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Reclassification Leave
Compensation for notice
Severance pay
Compensatory allowance for paid leave