Learn about the legal processes for employee termination and severance in Reunion
In Reunion, the legal requirements for notice periods during employment termination are primarily governed by the French Labour Code. However, individual employment contracts and collective bargaining agreements can also establish specific notice periods.
The French Labour Code does not set a statutory minimum notice period for all employment terminations. Instead, minimum notice periods are determined based on employee categories and dismissal reasons:
The notice periods mentioned above are minimums. Employment contracts or collective bargaining agreements can stipulate longer notice periods for both employers and employees (article L. 123-1 of the French Labour Code).
Employment contracts can establish specific notice periods that supersede the legal minimums outlined above. These contractual notice periods must be balanced and respect a fairness principle (article L. 123-1 of the French Labour Code).
Collective bargaining agreements negotiated by trade unions can also define notice periods that apply to employees covered by the agreement. These agreements may establish longer notice periods than the legal minimums or those stipulated in individual employment contracts.
Severance pay in Reunion is a legal entitlement for employees who are involuntarily terminated from their employment, with certain exceptions. The French Labor Code provides the guidelines for the conditions and calculations for severance pay entitlements.
An employee is entitled to severance pay in Reunion if they meet the following conditions:
The calculation of severance pay in Reunion is based on two factors:
Despite meeting the standard conditions, certain circumstances can lead to the loss of severance pay entitlement:
The employment termination process in Reunion follows specific legal guidelines outlined primarily in the French Labour Code. Individual employment contracts and collective bargaining agreements may also contain additional provisions.
There are two main types of termination:
Dismissal for Personal Reasons: This type of dismissal focuses on the employee's conduct or professional capacity. The French Labor Code distinguishes between ordinary dismissal, dismissal for serious misconduct, and dismissal for gross misconduct.
Dismissal for Economic Reasons: This is based on the company's economic situation or necessary restructuring.
The process for dismissal for personal reasons involves a preliminary interview, where the employer must summon the employee to a preliminary interview via registered letter with acknowledgment of receipt. This letter states the reasons for the potential dismissal. Upon completion of the notice period (or if notice is not applicable), the employer sends a dismissal notification letter via registered letter with acknowledgment of receipt. The letter must clearly state the reason for dismissal.
Dismissal for economic reasons requires a process of informing and consulting with employee representatives in companies of a specific size. The company needs administrative approval for a redundancy plan, depending on the scale of layoffs. Similar to dismissal for personal reasons, it includes a preliminary interview, notice period, and dismissal notification letter.
Employees can challenge a dismissal before the Labor Court, particularly in cases where they believe the termination was unjustified or procedural requirements were not followed. The termination process can become more complex depending on specific situations, such as protected employee categories or collective dismissals.
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