Fixed-term contracts

Following completion of the trial period, a fixed-term contract can only be terminated for the following reasons, otherwise the dismissal will be unfair:

1. For serious or gross misconduct.

2. For an act of god.

3. On agreement between the parties.

In addition, the employee can terminate the contract unilaterally if offered an indefinite-term contract by another employer.

Indefinite-term contracts

An indefinite-term contract can be terminated by both parties at any time, subject to observing a notice period and complying with relevant legal procedures.

An employer can only terminate an indefinite-term employment contract on real and serious grounds and only for the following reasons, otherwise the dismissal will be unfair:

1. Personal. Personal grounds can include either misconduct or conduct such as:

- poor performance or unsatisfactory professional skills;

- inability to perform the assigned task; or

- conduct within the company.

2. An employee's repeated absence or absence over a long period of time (which is not related to a work-related accident or illness) may constitute, in certain circumstances, valid grounds for dismissal.

Economic grounds. The Labour Code permits two fundamental economic grounds for dismissal:

- economic difficulties facing the company or the relevant business sector at international group level;

- technological changes.

Case law allows a third economic ground for dismissal where it is necessary to safeguard the competitiveness of the company or the relevant business sector at international group level.

After deciding which positions are to be eliminated, the employer must select which employees are to be made redundant in accordance with the following criteria, which apply regardless of the number of redundancies:

- Number of dependants (particularly for single parents).

- Length of service.

- Potential difficulties in finding new employment (such as age or disability).

- Professional skills.

An employee can only be made redundant after all training initiatives have been carried out in the company or in the group. The employer must do its utmost to redeploy employees facing redundancy to another position in the same company or group. Non-compliance with these rules results in the redundancy being considered unfair.

Employees made redundant benefit from a rehiring priority during a one-year period, under certain conditions (in particular, they must indicate their intention to benefit in this way).

The employee's length of service is taken into account for the calculation of severance pay and the award of damages in the event of unfair dismissal.

Protected employees

Certain employees enjoy varying levels of specific protection against dismissal, including:

- Pregnant women.

- Employees on sick leave as a result of a work-related illness or accident.

- Staff representatives.

LAFOURCADE AVOCATS staff will be happy to advise you and is available for a free introduction meeting.