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Certain French industrial tribunals have recently been in the spotlight for having set aside the Macron scale of damages for unfair dismissal.

Auteurs: Séverine Martel Fernando Lima Teixeira

Since the entry into force of French President Emmanuel Macron’s labor reforms on September 24, 2017, the amount of damages for unfair dismissal has been subject to both a floor and a cap, depending mainly on the employee’s length of service. However, the scale used in determining damages does not apply to dismissals held null and void in, for example, the case of discrimination or sexual or workplace harassment.

The goal of the so-called “Macron scale” under the labor reforms was to improve the predictability of the damages that an employer may have to pay in case of unfair dismissal. Needless to say, the measures were also adopted with a view to attracting foreign investors, who are – let’s be honest – often scared off by the complexity of French employment law.