When an employee is dismissed without serving their notice period, the employer must pay a compensatory indemnity, sometimes a substantial one. Understanding the calculation rules helps anticipate costs and reduce legal risks.
1. Length of the notice period
Since the 2014 reform, the duration of notice depends on seniority and follows a legal scale (Art. 37/2 of the Act of 3 July 1978).
Examples:
- Less than 3 months of seniority → 1 week
- 1 year → 4 weeks
- 5 years → 15 weeks
- 10 years → 33 weeks
For contracts that started before 1 January 2014, a transitional rule applies: rights acquired before 2014 (old system) are added to those acquired after 2014 (new system).
2. Calculation basis
The indemnity corresponds to the gross remuneration the employee would have received if they had worked during the notice period.
This includes:
- The gross monthly salary
- Benefits in kind (company car, mobile phone, etc.)
- Regular bonuses (13th month, commissions, etc.)
Variable elements are calculated on the average of the last 12 months.
3. Calculation formula
Indemnity = weekly remuneration × number of notice weeks
Weekly remuneration = monthly salary × 3 / 13
Examples
-
Employee A: 4.5 years of service, €3,200 gross → notice: 15 weeks
Indemnity ≈ €11,077 gross - Employee B: Hired in 2012, €4,400 gross (salary + commissions)
Notice: 3 months (old system) + 33 weeks (new system)
Indemnity ≈ €46,700 gross
Please note
- The indemnity is subject to social security contributions and withholding tax.
- Certain categories (protected employees, etc.) have specific rules.
- The labour court is competent in case of disputes.
For greater security, it is advisable to consult an HR or legal adviser, use a simulator, or check the relevant sectoral collective agreements (CCT/cao).
By Daniel Binamé, Development and Partnerships Manager at Partena Professional
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