How to Dismiss an Employee: Steps of the Procedure

Knowing how to dismiss an employee is an essential skill for any HR professional or company executive. Dismissal constitutes the termination of the employment contract at the employer's initiative and requires compliance with a legal procedure governed by labor law. To dismiss an employee legally, it is imperative to justify a real and serious cause and to scrupulously follow each step of the process. At AssessFirst, we observe that companies that master these procedures not only avoid costly litigation but also preserve their employer brand. The process for dismissing an employee varies depending on whether it involves personal grounds (disciplinary or not) or economic grounds, each case involving specific obligations, particular timelines, and different consequences for both parties.

Key Takeaways

• Any dismissal must imperatively be based on a real and serious cause, whether personal (misconduct, professional inadequacy) or economic, or risk being deemed wrongful.
• The legal procedure is strict and sequential, mandatorily involving a summons to a preliminary meeting, the holding of that meeting, then the sending of a motivated dismissal letter, all while respecting precise timelines.
• Failure to follow these steps or the absence of a valid reason exposes the company to significant financial penalties and costly litigation, potentially leading to the nullification of the dismissal in the most serious cases.

What Are the Different Grounds for Dismissal?

To understand how to dismiss an employee correctly, it is fundamental to determine the precise grounds justifying this decision. French legislation distinguishes two major categories of grounds that determine the entire procedure to follow. The choice of grounds is not trivial since it determines not only the procedural steps to follow but also the employee's rights in terms of compensation and notice. When an employer considers dismissing an employee, they must ensure that their grounds meet the legal requirements of real and serious cause, a central concept in French dismissal law that will be systematically evaluated by judges in case of dispute.

Personal Grounds

Dismissal on personal grounds concerns any decision to dismiss an employee due to facts directly attributable to them. This category is divided into two distinct subgroups: disciplinary and non-disciplinary grounds. To dismiss an employee on personal grounds, the employer must imperatively justify a real and serious cause, meaning an objective, accurate, and sufficiently serious reason to justify the definitive termination of the employment contract. In the disciplinary framework, the employer can dismiss an employee in case of simple misconduct (inadequate behavior, non-compliance with directives), serious misconduct (serious breach making it impossible to keep the employee in the company, even temporarily), or gross misconduct (intent to harm the company). Each level of misconduct entails different consequences, particularly regarding the right to compensation. Non-disciplinary grounds mainly include professional inadequacy, which must be demonstrated through concrete and repeated facts, medical unfitness certified by the occupational physician, or prolonged or repeated absences disrupting company operations. To avoid having to dismiss an employee for inadequacy, many companies now work to combat skills obsolescence through adapted continuous training programs.

Economic Grounds

Dismissal on economic grounds fundamentally differs from personal grounds because it is independent of the employee as a person. To dismiss an employee on these grounds, the employer must demonstrate that their decision is justified by economic difficulties, technological changes, a reorganization necessary to safeguard the company's competitiveness, or complete cessation of activity. The law imposes particularly strict obligations before dismissing an employee on economic grounds. The employer must notably explore all possibilities for redeployment within the company or the group to which it belongs. This redeployment obligation constitutes a mandatory prerequisite, and failure to comply can result in the reclassification of the dismissal as wrongful. The scope of assessment for economic grounds extends to the group's sector of activity in France, meaning that even if a subsidiary is experiencing difficulties, the dismissal could be deemed without real cause if the group as a whole is prosperous in the same sector. To dismiss an employee in this context, the employer must also define criteria for the order of dismissals when several similar positions are affected, taking into account seniority, family responsibilities, and professional qualities.

How to Dismiss an Employee: The Procedure to Follow

The procedure for dismissing an employee involves several successive and mandatory steps, regardless of the grounds invoked. Knowing how to dismiss an employee means perfectly mastering this sequential process and scrupulously respecting each legal deadline. A breach, even minor, of this dismissal procedure can lead to significant legal and financial consequences for the employer. Failure to follow the steps can make the dismissal procedurally irregular, or even a dismissal without real cause on substance, exposing the company to significant financial penalties. This is why many employers consult experts or refer to detailed resources to ensure they correctly follow the complete dismissal procedure. Each phase of the process to dismiss an employee has its importance and deserves particular attention.

Summoning the Employee to a Preliminary Meeting

The first essential step to dismiss an employee is the summons to a preliminary meeting. This mandatory formality must comply with precise rules regarding both form and timing. The employer must send this summons by registered letter with acknowledgment of receipt or by hand delivery against signed receipt, which constitutes essential evidence. The content of this summons to dismiss an employee must explicitly mention the purpose of the meeting (namely that the employer is considering a dismissal), the date, time, and precise location of the meeting. The letter must also inform the employee of their right to be assisted by a person of their choice from the company's staff or, in the absence of staff representatives, by an employee advisor registered on a prefectural list. A minimum period of 5 working days must imperatively be respected between the presentation of the letter and the date of the preliminary meeting. This period allows the employee to prepare their defense and, if applicable, to contact an assistant. To dismiss an employee properly, this period constitutes a fundamental protection that cannot be reduced under any pretext, under penalty of procedural irregularity.

The Meeting Itself

The preliminary meeting represents a crucial step in the process to dismiss an employee. During this meeting, the employer must precisely explain the reasons leading them to consider dismissal and gather the employee's explanations. This exchange must be genuine and allow the employee to present their version of the facts or their arguments. During this meeting, the employee can be assisted by a person of their choice from the company or, in the absence of staff representatives, by an external advisor registered on a prefectural list. The employer who wishes to dismiss an employee cannot oppose this assistance, which constitutes a fundamental freedom of the employee in the procedure. It is important to note that the employee's absence from this meeting, although regrettable, does not constitute misconduct and does not prevent the continuation of the procedure. The employer who plans to dismiss an employee can then continue the process but must be able to prove that the summons was properly sent and presented to the employee's home. Although no official minutes are legally required, it is strongly recommended to take detailed notes on the meeting proceedings, arguments exchanged, and persons present.

Sending the Dismissal Letter

To finalize the decision to dismiss an employee, the employer must notify their decision by dismissal letter sent by registered mail with acknowledgment of receipt. This notification cannot occur less than two working days after the date of the preliminary meeting, a mandatory reflection period for the employer, intended to avoid hasty decisions. The dismissal letter constitutes a determining legal document that must be carefully drafted. To dismiss an employee correctly, this letter must explain precisely and in detail the grounds for dismissal. These grounds must be sufficiently clear and detailed, as they set the limits of the dispute in case of subsequent challenge before the courts. The Court of Cassation has regularly stated that an employer cannot invoke other grounds than those mentioned in this letter during potential litigation. Since the Macron ordinances, the employer who wishes to dismiss an employee can clarify the grounds stated within 15 days following the dismissal notification, either on their own initiative or at the employee's request. This possibility of subsequent clarification does not, however, allow adding entirely new grounds, but simply clarifying those already mentioned.

The Notice Period

After notifying the decision to dismiss an employee, the employer must observe a notice period during which the employment contract continues to be performed normally. The duration of this notice varies according to the employee's seniority in the company and the provisions of the applicable collective agreement. In the absence of more favorable conventional provisions, the Labor Code provides for a notice period of one month for employees with between six months and two years of seniority, and two months for those with at least two years of seniority. To dismiss an employee with less than six months of seniority, the notice period is determined by local and professional customs. There are, however, exceptions to this notice obligation. Notably, to dismiss an employee for serious or gross misconduct, the employer is exempt from notice, the contract termination being immediate. Furthermore, the employer may decide to exempt the employee from serving their notice period, but must in this case pay a compensatory allowance equivalent to the remuneration the employee would have received had they worked during this period.

The Effective Termination of the Contract

The termination of the contract occurs either at the end of the notice period served, or immediately in case of notice exemption or dismissal for serious or gross misconduct. At this precise moment, to finalize the process of dismissing an employee, the employer must provide several mandatory documents whose absence can be sanctioned. These documents include the work certificate, the Pôle Emploi (employment agency) certificate allowing the employee to claim unemployment benefits, the receipt for final settlement detailing all sums paid, and a summary statement of all amounts and securities saved under profit-sharing schemes. The employee who wishes to challenge their dismissal has a period of 12 months from the notification of termination to bring the case before the labor tribunal. This relatively short period, established by the 2017 Macron ordinances, has considerably reduced the period of legal uncertainty for employers. However, certain specific actions such as those relating to discrimination or harassment benefit from longer periods. To dismiss an employee with full legal security, it is therefore essential to retain all evidence justifying the decision for several years.

What Mistakes Should Be Avoided When Dismissing an Employee?

• Not justifying the dismissal with a real and serious cause
• Using discriminatory grounds (age, gender, health status, union activities)
• Not respecting legal timelines between the different steps
• Orally notifying the dismissal before sending the letter
• Writing an imprecise or insufficiently motivated dismissal letter
• Refusing the presence of an assistant during the preliminary meeting
• Dismissing a protected employee without labor inspection authorization
• Not seeking redeployment in case of economic dismissal
• Forgetting to provide mandatory end-of-contract documents

Putting Forward False Grounds

Dismissing an employee by invoking inaccurate or insufficient grounds constitutes one of the most serious mistakes an employer can make. Dismissal without real cause will be systematically sanctioned by the courts. To dismiss an employee legally, the employer must rely exclusively on precise, objective, and verifiable facts, constituting a sufficiently serious cause to justify the definitive termination of the employment contract. Judges examine with particular attention the reality of the grounds invoked and do not hesitate to reclassify a dismissal when the alleged facts are not established or are manifestly insufficient. A dismissal based on discriminatory grounds (related to age, gender, origin, union activities, health status, or pregnancy) is considered null, which can lead to the employee's reinstatement if they so wish. Similarly, dismissing an employee by invoking professional inadequacy without being able to demonstrate this inadequacy through concrete evidence, or by using a misconduct that was not committed as a pretext, exposes the employer to conviction for wrongful dismissal. The financial consequences can be heavy, with compensation potentially reaching up to 20 months of salary depending on the employee's seniority and the company's size, not counting potential damages for moral prejudice.

Failure to Follow the Dismissal Procedure Steps

To dismiss an employee in compliance with the law, each step of the procedure must be scrupulously followed. Failure to respect legal timelines, the absence of a formal summons to the preliminary meeting, or an insufficiently motivated dismissal notification constitute irregularities that legally weaken the decision. These procedural failures can have different consequences depending on their severity. A simple procedural irregularity, such as not respecting the period between the summons and the meeting, can be sanctioned by a specific compensation of up to one month's salary. However, more substantial irregularities, such as the complete absence of a preliminary meeting or an unmotivated dismissal letter, can lead to reclassification as dismissal without real and serious cause. Particular attention must be paid to employees benefiting from special protection. To dismiss a protected employee (staff representative, union delegate, employee advisor, occupational physician), the employer must first obtain authorization from the labor inspection. The absence of this authorization renders the dismissal null, with particularly heavy consequences, including mandatory reinstatement of the employee and payment of salaries for the entire period of exclusion, without any cap.

What About Dismissal Compensation?

When an employer decides to dismiss an employee, various forms of compensation may be due depending on the grounds for dismissal and the employee's seniority. The statutory dismissal compensation constitutes a right for any permanent contract employee dismissed for grounds other than serious or gross misconduct, provided they have at least eight months of uninterrupted seniority in the company. This compensation is calculated based on seniority and the reference salary per year, generally the average of the last 12 months preceding the dismissal. To this statutory compensation may be added the compensatory notice allowance (in case of exemption) and the compensatory paid leave allowance for accrued but unused rights. The compensation regime varies considerably depending on whether it is an economic dismissal, a dismissal on non-misconduct personal grounds, or a dismissal for serious misconduct. To dismiss an employee while fully understanding the financial implications, it is essential to master these different configurations.

Economic Dismissal and Dismissal on Personal Grounds Other Than Misconduct

In the context of an economic dismissal or a dismissal on non-misconduct personal grounds, the employee is entitled to the statutory dismissal compensation, the amount of which is set by the Labor Code at one quarter of a month's salary per year of seniority up to 10 years, then one third of a month per year beyond that. To dismiss an employee under these conditions, the employer must also verify whether the applicable collective agreement provides for a more favorable conventional compensation, in which case the latter will apply. The employee also benefits from the notice period or its compensatory allowance in case of exemption, as well as the compensatory paid leave allowance for accrued and unused rights. An important specificity of economic dismissal is the priority for rehiring that the employee benefits from for one year, provided they request it. To dismiss an employee on economic grounds, the employer may also be required to offer a professional security contract (CSP) or a redeployment leave depending on the company's size.

Dismissal for Misconduct

In case of dismissal for misconduct, the compensation due varies considerably depending on the classification of the misconduct. To dismiss an employee for simple misconduct, the employer must pay the statutory dismissal compensation as well as the notice allowance or have the notice served. Simple misconduct, while constituting a breach of contractual obligations, is not considered sufficiently serious to deprive the employee of their compensation rights. However, to dismiss an employee for serious misconduct, defined as a breach making it impossible to keep the employee in the company even for the limited duration of the notice period, the employer is exempt from paying the dismissal compensation and the notice allowance. Gross misconduct, which implies intent to harm the company, entails the same consequences as serious misconduct. It is important to note that the compensatory paid leave allowance remains due in all cases, including in case of gross misconduct, following a 2016 Constitutional Council decision that considered depriving an employee of this allowance constituted a disproportionate infringement of the right to compensation. An employee dismissed for misconduct can generally benefit from the return-to-employment assistance allowance paid by Pôle Emploi, except in cases of gross misconduct where a specific waiting period may be applied.

What Should Be Remembered About the Procedure for Dismissing an Employee?

Dismissing an employee is a legally regulated process that requires rigor and scrupulous respect for procedures. The employer must imperatively ensure they have a real and serious reason, respect each procedural step in order and within prescribed timelines, and pay all compensation due according to the situation. The steps to dismiss an employee cannot be improvised or simplified without major legal risk. A poorly conducted dismissal exposes the company to potentially costly and time-consuming litigation. Depending on the severity of the breaches, sanctions can range from a simple compensation for procedural irregularity to conviction for dismissal without real and serious cause, or even nullification of the dismissal in the most serious cases. To dismiss an employee with full legal security, it is often recommended to seek guidance from a labor law expert or consult specialized resources on hiring incentives and departure management.

Transform Your Practices for the Better

Before considering dismissing an employee, companies have every interest in exploring possible alternatives and implementing preventive HR practices. The first approach is to identify early on the difficulties encountered by an employee and implement appropriate support: training, coaching, position or department change. These measures can not only avoid a costly dismissal but also reduce turnover and preserve skills within the organization. In certain situations, alternatives to dismissal can be considered, such as mutual termination agreement which allows an amicable separation with negotiated conditions. For temporary economic difficulties, short-time working can constitute an alternative to economic dismissal, allowing the company to retain skills while awaiting an improvement in the situation. The most effective companies in talent management adopt a proactive approach, implementing regular evaluations and personalized development plans. To avoid having to dismiss an employee for professional inadequacy, they invest in continuous training and adapting skills to market developments. This preventive approach generally proves more effective and less costly than managing the consequences of a dismissal, both financially and in terms of employer brand image.

Predictive HR Solutions

Predictive assessment tools can play a crucial role in anticipating and preventing situations that could lead to considering dismissing an employee. These solutions enable early identification of mismatches between an employee's skills and their position requirements, or between their personality and the company culture. A scientifically validated personality test can, for example, reveal behavioral traits that could create tensions in certain work environments, thus allowing anticipation and adaptation of support.

About AssessFirst

AssessFirst offers predictive HR solutions that help companies optimize their recruitment and develop their talent, thus significantly reducing the need to dismiss an employee due to mismatch. Our approach based on soft skills analysis and behavioral sciences enables identifying each employee's potential and guiding them toward functions where they can fully thrive and contribute to collective performance.

The Essentials in 3 Questions

What are the mandatory key steps to dismiss an employee?

The dismissal procedure requires three successive and mandatory steps. First, the summons to a preliminary meeting by registered letter, respecting a minimum period of 5 working days. Then, the holding of the meeting during which the employer explains the envisaged grounds and gathers the employee's explanations. Finally, the dismissal notification by a new registered letter, sent at least 2 working days after the meeting, which must precisely detail the grounds for termination.

On what grounds can an employer dismiss an employee?

Dismissal must imperatively be based on a real and serious cause. There are two major categories of grounds: personal grounds, which are directly related to the employee (simple, serious, or gross misconduct, professional inadequacy, medical unfitness...), and economic grounds, which are independent of the employee (economic difficulties, company reorganization, technological changes...).

What are the most serious mistakes to avoid during a dismissal?

The most serious mistakes are dismissing an employee without real and serious cause (inaccurate, insufficient, or discriminatory grounds) and not scrupulously following the legal procedure (timelines, formalism of the summons and letter). Writing an imprecise dismissal letter is also a major mistake, as only the grounds stated therein can be debated in case of dispute before the labor tribunal.Sources:

• LegalPlace, "Dismissal: grounds, procedure and compensation", 2025.
• Ministry of Labor, "The procedure in case of dismissal on personal grounds", 2025.