The Court of Cassation confirms the Macron scales of indemnification

24/05/2022

The Court of Cassation confirms the Macron scales of indemnification

In a judgment of 11 May 2022, the French Supreme court rules that the Macron scales cannot be set aside by the French courts.

 The executive orders of 22 September 2017, known as the "Macron" orders, introduced a fixed compensation scale for the damage suffered by an employee in the event of dismissal without real and serious cause. This compensation depends on the employee's seniority and remuneration, according to a scale set out in Article L. 1235-3 of the Labour Code.

 This "scale" had given rise to much criticism, as it seemed to contradict the principle of full compensation of the damage suffered by the employee, which is not necessarily a function of the employee's seniority in the company.

 Several employees had invoked the non-conformity of the scales with international standards to challenge these scales and obtain a higher compensation. In this ruling, the French Supreme Court confirms that the Macron scales allow for an "adequate" compensation of the employee within the meaning of article 10 of the ILO (International Labour Organisation) Convention No. 158.

 According to the Court, judges cannot disregard the Macron scales and proceed to an assessment based solely on the circumstances of the case (known as an in concreto assessment) of the damage suffered by the employee. They are bound by the damages set out in the scale.

#labourlaw #dismissal #macronscales