Your first hire in France is not working out. Targets are missed quarter after quarter, clients complain, or a misconduct incident has broken trust, and you manage the company from London, New York, Dubai or Singapore. A mutual separation would be elegant, but the employee refuses to sign, so you must dismiss. In France a dismissal for personal reasons, the licenciement pour motif personnel, is lawful and routine, yet it obeys a choreography that forgives no improvisation: a formal invitation, a preliminary meeting, cooling-off periods counted in working days, and a reasoned notification letter. Skip one step and the labour court, the conseil de prud’hommes, declares the dismissal unfair or even procedurally void, with damages set by a statutory scale. This guide walks through the operation as a foreign employer must run it. The first part explains when poor performance or misconduct justifies dismissal and the exact ritual to follow from abroad. The second part prices the exit, notice, severance and final papers, then shows how to survive the twelve-month challenge window before the labour court.<\/p>\n
A few French terms will recur. CDI means contrat \u00e0 dur\u00e9e ind\u00e9termin\u00e9e, the open-ended employment contract. Cause r\u00e9elle et s\u00e9rieuse means a real and serious cause, the legal standard every dismissal must meet. Entretien pr\u00e9alable is the preliminary meeting where the employee is heard before any decision. Lettre recommand\u00e9e avec avis de r\u00e9ception, often shortened to LRAR, is the registered letter with acknowledgment of receipt that carries the key steps. URSSAF is the agency collecting social contributions, DSN the monthly online payroll declaration, France Travail the public employment service formerly called P\u00f4le emploi, and Kbis the official identity extract of a French company. Readers who are still setting up their vehicle should start with the companion pillar guide on setting up a company in France as a foreign founder, from bank account and Kbis to VAT and first hire<\/a>, which places this dismissal in the wider life of a foreign-owned company.<\/p>\n Every dismissal for personal reasons must satisfy one standard. Article L1232-1 of the Labour Code<\/a> states that any such dismissal must follow the statutory procedure and that “Il est justifi\u00e9 par une cause r\u00e9elle et s\u00e9rieuse.” Real means the facts exist, are precise and can be verified. Serious means they are grave enough to make continued employment impossible or at least to justify ending it. The labour court checks both, and the burden of presenting a coherent file sits with the employer from the first letter to the last hearing.<\/p>\n Poor performance, called insuffisance professionnelle, is the most common ground and the most mishandled. The Paris Court of Appeal restated the definition on 29 April 2025, RG 21\/06986, published at Paris Court of Appeal, P\u00f4le 6, Chamber 5, 29 April 2025, RG 21\/06986<\/a>: “L’insuffisance professionnelle se d\u00e9finit comme l’incapacit\u00e9 objective et durable d’un salari\u00e9 \u00e0 ex\u00e9cuter de fa\u00e7on satisfaisante un emploi correspondant \u00e0 sa qualification.” An objective and lasting inability to perform a job matching the employee’s qualification. The same court recalled what the judge verifies: whether the targets were reasonable and achievable, whether the market allowed reaching them, and crucially that “l’insuffisance repose sur des faits objectifs, mat\u00e9riellement v\u00e9rifiables, imputables au salari\u00e9”, facts that are objective, materially verifiable and attributable to the employee. Missing figures alone never suffice. A founder who wants to rely on underperformance must therefore assemble dated proof: job description, reasonable written targets, quarterly reviews the employee signed or received, warnings pointing at specific shortcomings, training or support offered, and comparison data showing peers in the same market succeeded. A single bad quarter after years of praise, or targets doubled without resources, will not survive judicial review, and appraisal reports that praise the employee destroy the case more surely than any defence pleading.<\/p>\n Misconduct follows a different ladder with three rungs. Simple misconduct, the faute simple, justifies dismissal but leaves notice and severance intact. Serious misconduct, the faute grave, is defined by a formula every founder should memorise. The Cour de cassation recalled on 1 October 2025, appeal number 24-13.764, published at Cour de cassation, Chambre sociale, 1 October 2025, no. 24-13.764<\/a>: “La faute grave, qui peut seule justifier une mise \u00e0 pied conservatoire, est celle qui rend impossible le maintien du salari\u00e9 dans l’entreprise.” Only conduct making continued presence impossible qualifies: theft, violence, proven fraud, deliberate sabotage, or a breach of trust so deep the employee cannot stay a single day. In that 2025 case the appeal judges had found the established facts justified ending the contract yet did not show a breach serious enough to make continued presence impossible even during notice, and the Cour de cassation quashed the ruling for failing to draw the legal consequences, a warning against inflating ordinary grievances into serious misconduct. Gross misconduct, the faute lourde, requires intent to harm the employer and mainly matters for damages claims. Two boundaries complete the picture. Disciplinary facts expire fast: article L1332-4 of the Labour Code<\/a> provides that “Aucun fait fautif ne peut donner lieu \u00e0 lui seul \u00e0 l’engagement de poursuites disciplinaires au-del\u00e0 d’un d\u00e9lai de deux mois \u00e0 compter du jour o\u00f9 l’employeur en a eu connaissance”, so a founder who learns of misconduct while travelling must act within two months of actual knowledge. And some grounds are forbidden altogether: pregnancy, discrimination, harassment complaints and the exercise of strike or representative rights can never support a dismissal, whatever the performance file says.<\/p>\n Founders often ask whether a performance improvement plan is mandatory before dismissing for poor results. No statute imposes a plan under a specific name, but judges treat prior support as powerful evidence that the inability is lasting and attributable to the employee rather than to disorganisation. Set written targets with measurable indicators and a realistic deadline of two to four months, meet the employee at the midpoint, offer concrete help such as training, mentoring or a reshaped portfolio, and record each step in emails the employee receives. Conversely, decisions based on age, origin, sex, health, pregnancy, union activity or the exercise of the right to strike are void regardless of performance, and retaliation after a harassment complaint or a request for part-time or parental leave poisons the file. Before finalising the ground, screen the chronology for any protected event in the preceding months, because a dismissal that follows a complaint or a mandate will be read as retaliation unless the employer proves an airtight independent cause.<\/p>\n Once the ground is solid, the procedure is mechanical and every date counts. Article L1232-2 of the Labour Code<\/a> requires the employer contemplating dismissal to summon the employee to a preliminary meeting before any decision, by registered letter or hand-delivered letter against receipt stating the purpose, and adds that “L’entretien pr\u00e9alable ne peut avoir lieu moins de cinq jours ouvrables apr\u00e8s la pr\u00e9sentation de la lettre recommand\u00e9e ou la remise en main propre de la lettre de convocation.” Five full working days minimum between presentation of the invitation and the meeting, Sundays and public holidays excluded. From abroad, send the registered letter early, keep the postal receipt and the acknowledgment, and never decide or announce the outcome before the meeting, because a decision taken in advance voids the whole ritual.<\/p>\n At the meeting the founder or a duly authorised representative states the contemplated dismissal and hears the employee’s explanations. Article L1232-4 of the Labour Code<\/a> lets the employee be assisted by a person of their choice from inside the company, or, where the company has no employee representative body, by an outside staff counsellor, the conseiller du salari\u00e9, chosen from an official list, and requires that “La lettre de convocation \u00e0 l’entretien pr\u00e9alable adress\u00e9e au salari\u00e9 mentionne la possibilit\u00e9 de recourir \u00e0 un conseiller du salari\u00e9 et pr\u00e9cise l’adresse des services dans lesquels la liste de ces conseillers est tenue \u00e0 sa disposition.” A one-person French subsidiary has no staff body, so that sentence must appear in the invitation with the address of the town hall or labour office holding the list. Hold the meeting in France, at the workplace or a neutral venue nearby, by video only if the employee genuinely agrees, and keep a factual note of what was said. A founder who cannot fly in should mandate in writing a local manager or counsel with explicit authority to conduct the meeting, because the person facing the employee must be able to hear, question and report, not merely read a script.<\/p>\n After the meeting comes a second cooling-off period. Article L1232-6 of the Labour Code<\/a> requires notification by registered letter with acknowledgment of receipt stating the reasons, and provides that “Elle ne peut \u00eatre exp\u00e9di\u00e9e moins de deux jours ouvrables apr\u00e8s la date pr\u00e9vue de l’entretien pr\u00e9alable au licenciement auquel le salari\u00e9 a \u00e9t\u00e9 convoqu\u00e9.” Two full working days after the scheduled meeting date before posting, even if the employee did not attend. The letter must state precise, verifiable and dated facts, because only the stated reasons count before the court: a vague reference to disappointing performance or broken trust, without figures, dates and examples, collapses at the first hearing. The ministry publishes model letters by order, and the step-by-step official presentation on service-public.fr, dismissal procedure for personal reasons<\/a>, the overview at service-public.fr, dismissal for personal reasons<\/a> and the ministry guide at travail-emploi.gouv.fr, procedure for dismissal on personal grounds<\/a> all follow the same sequence. For a Paris-based employee the later dispute would go to the Paris labour court, the conseil de prud’hommes de Paris, so Paris founders keep every postal slip and meeting note with that forum in mind.<\/p>\n Distance adds logistics, not new law. The registered invitation can be sent online through the postal operator electronic registered letter service, which produces the same proof of presentation as a counter posting, and delivery to the employee home in France runs normally while the founder stays abroad. If the employee is on sick leave, the invitation still stands, though the meeting is rescheduled on medical advice and dismissal cannot rest on the state of health itself. If the employee does not attend, the procedure continues: the two working days run from the scheduled meeting date, and absence is noted, not punished. Language matters too. The notification letter must be in French to be enforceable before a French court, with a certified translation provided alongside for a non-French-speaking founder, while internal discussions with the employee happen in the language both sides actually use. Every mandate given to a local manager should be written, dated and specific to the dismissal at hand, because a general management letter signed months earlier invites a challenge to the signatory authority.<\/p>\n Except in cases of serious misconduct, dismissal triggers notice and severance. Article L1234-1 of the Labour Code<\/a> sets the statutory notice floor: one month for service between six months and two years, since the article grants “S’il justifie chez le m\u00eame employeur d’une anciennet\u00e9 de services continus comprise entre six mois et moins de deux ans, \u00e0 un pr\u00e9avis d’un mois”, and two months from two years of service, with shorter service and many sectors governed by the collective agreement, the convention collective, or local usage, often more generous. The applicable agreement, Syntec-BETIC for technology, commerce, hotels, construction or banking, frequently extends these periods, so the founder checks the agreement before writing the letter. If the employer dispenses the employee from working the notice, salary and benefits continue to the end of the notice period, and article L1234-5 of the Labour Code<\/a> confirms that “L’indemnit\u00e9 compensatrice de pr\u00e9avis se cumule avec l’indemnit\u00e9 de licenciement”, the compensatory notice payment stacks with the dismissal indemnity. Serious misconduct alone removes both notice and statutory severance, which is why the qualification chosen in the letter directly prices the exit.<\/p>\n The severance floor mirrors the mutual separation arithmetic. Article L1234-9 of the Labour Code<\/a> grants the indemnity to “Le salari\u00e9 titulaire d’un contrat de travail \u00e0 dur\u00e9e ind\u00e9termin\u00e9e, licenci\u00e9 alors qu’il compte 8 mois d’anciennet\u00e9 ininterrompus au service du m\u00eame employeur, a droit, sauf en cas de faute grave, \u00e0 une indemnit\u00e9 de licenciement.”, every open-ended employee with eight months of continuous service, except in cases of serious misconduct. Article R1234-2 of the Labour Code<\/a> computes it as “Un quart de mois de salaire par ann\u00e9e d’anciennet\u00e9 pour les ann\u00e9es jusqu’\u00e0 dix ans”, one quarter of a month’s salary per year for the first ten years, plus one third per year beyond ten. The reference salary is the most favourable of the last twelve or three months of gross pay with bonuses pro rata, and the collective agreement often sets a higher conventional minimum that applies when more generous. A three-year employee at 3,500 euros gross generates at least 2,625 euros; a six-year employee at 4,000 euros at least 6,000 euros. The payroll provider models the net, the social charges and the tax withholding on the exact figure before the letter goes out, because the monthly DSN declaration must carry the final settlement lines correctly the first time.<\/p>\n On exit the employer delivers three documents the founder should know by name. The certificat de travail certifies the employment period and positions. The attestation France Travail lets the employee register for unemployment benefits, with eligibility and waiting periods set by France Travail, not by the employer. The solde de tout compte receipts every sum paid: salary balance, holiday indemnity, notice compensation and dismissal indemnity. Deliver them on the last day, transmit the data through the DSN, and keep proof of delivery, since late or missing papers generate standalone damages claims even when the dismissal itself was justified.<\/p>\n The payslip treatment deserves a paragraph of its own because foreign founders discover it late. The dismissal indemnity is partly exempt from social contributions and income tax within statutory ceilings that depend on the amount and on whether the dismissal is later judged unfair, while the fraction above the ceilings is fully charged and taxed, with the general social levies applying broadly. Notice compensation is treated as salary, fully charged and taxable. Accrued holiday indemnity follows salary treatment. None of this is computed by hand: the payroll provider models the net cost on the exact figures before the notification letter goes out, and the monthly DSN carries the final settlement lines, including the specific codes for dismissal indemnities, so that URSSAF records and the employee annual tax statement match to the euro. Payment itself is due on the last day of the contract together with the final documents, and any contractual or conventional bonus pro rata temporis must be computed on the full notice period even when the employee was dispensed from attending.<\/p>\nI. When Can You Dismiss a French Employee for Personal Reasons and Which Ritual Must You Follow From Abroad?<\/h2>\n
A. Poor Performance or Misconduct: What Counts as a Real and Serious Cause<\/h3>\n
B. The Mandatory Ritual: Invitation, Preliminary Meeting and Timed Notification<\/h3>\n
II. What Does the Dismissal Cost and How Do You Survive the Twelve-Month Challenge?<\/h2>\n
A. Notice, Severance Floor and Final Papers<\/h3>\n
B. The Twelve-Month Challenge, the Macron Scale and the File That Protects You<\/h3>\n