Following the ruling of the Supreme Court on 17 July 2019[1], the Paris Court of Appeal, by a judgment dated 30 October 2019[2], validated the Macron grid capping damages for unfair dismissal.

This policy, which limits the compensation that may be awarded to employees dismissed without a real or serious cause, has been challenged by many French labor courts since its implementation by an order dated 22 September 2017[3].

As a matter of law, its compliance with several international agreements, in particular Article 10 of Convention 158 of the International Labour Organisation (“ILO”), has been contested.  Meanwhile, the French labor court judges are vigorously defending their authority to determine, in a sovereign way, the amount of damages awarded to employees.

The Supreme Court has brought some order to this cacophony.  In an opinion of 17 July 2019, the plenary assembly of the Supreme Court (i.e., the full court and its most solemn setup) ruled that the Macron grid was in conformity with international labor law.

The Social Chamber of the Paris Court of Appeal, the most listened to court on the merits, agreed with this assessment in its judgment of 30 October 2019.

After two years of dispute, the Macron grid finally seems to have found more solid ground.

Bryan Cave Leighton Paisner LLP has a team of knowledgeable lawyers and other professionals prepared to help employers address French employment laws. If you or your organization would like more information on this or any other employment issue, please contact an attorney in the Employment and Labor practice group.

 

[1] Court of Cassation, Plenary Assembly, 17 July 2019, Opinion No. 15013

[2] Paris Court of Appeal, 30 October 2019, n°16/05602.

[3] Ordinance No. 2017-1387 of 22 September 2017 on the predictability and security of labour relations.