As an entrepreneur, we dream of growth, recruitment and shared success. However, the life of a company is made of cycles. Sometimes, the economic situation, a necessary technological change or the preservation of competitiveness force us to make the most difficult decision: parting ways with an employee for economic reasons.
It is not just a legal procedure; it is a moment of ethical and emotional tension. In 2025, the number of business failures and restructurings served as a reminder that economic resilience sometimes requires painful choices. But be careful: the form is as important here as the substance. A procedural flaw can turn a necessary management decision into a legal nightmare.
Here is how to go through this stage with rigor and respect.
1. The framework: Why now?
The economic motive cannot be invoked lightly. Since recent reforms and the lessons of the COVID-19 crisis, the case law is clear: dismissal must be the last resort.
The legacy of the crisis and the current context
If the pandemic has popularized partial activity and State Guaranteed Loans (PGE), the context of 2026 is marked by the repayment of these debts and the inflation of energy costs. Studies by the Altares firm show that VSEs/SMEs are the first affected by restructuring. For your reason to be valid, it must be based on:
- Serious economic difficulties (significant drop in orders or turnover).
- Technological changes (automation, AI making a position obsolete).
- The need to safeguard the competitiveness of the company.
2. The absolute prerequisite: Reclassification
Before even writing a summons, ask yourself this question: “Have I really tried everything to keep this talent? » The law imposes a reinforced obligation of means on you in terms of reclassification. You must propose to the employee, in writing:
- A job of equivalent category with identical remuneration.
- Failing this, and with his express agreement, a lower category job.
The number to remember: Nearly 25% of economic dismissals contested by the Industrial Tribunal are invalidated because of a search for reclassification deemed “insufficient” or “pro forma”.
3. The procedure: Respect of the schedule
Formality is your armor. Don’t skip any steps.
The preliminary interview: A moment of exchange
You cannot dismiss people without having heard your employee.
- The summons: Sent by registered mail or delivered by hand against discharge.
- The deadline: The interview cannot take place less than 5 working days after receipt of the letter.
- Support: It is imperative to mention that the employee can be assisted. Forgetting to mention this could cost you up to a month’s salary in compensation.
During the interview
This is where the “human tone” takes on its full meaning. Explain the economic reasons transparently. This is not the trial of the employee, it is the observation of an economic reality. It is also the time to offer him the Professional Security Contract (CSP) (for companies with fewer than 1,000 employees), an essential system which allows a smoother transition for him.
4. Notification: A goldsmith’s precision
Once the interview has passed, you must respect a reflection period before sending the dismissal letter:
- 7 working days for a non-executive.
- 15 working days for a frame.
The letter must be ultra-precise. It must mention:
- The precise economic reason (supporting figures).
- The impossibility of reclassification.
- Priority for rehiring (for 1 year).
- Rights to the CPF (Personal Training Account).
5. Administration: From DIRECCTE to DDETSPP
The administrative landscape has evolved. We no longer talk about Direccte, but about DDETSPP (Departmental Directorate of Employment, Labor, Solidarity and Population Protection).
You must inform the administrative authority of your decision within 8 days of sending the dismissal letter. This notification is now mainly done via the “RUPCO” dematerialization portal.
Special cases: The workforce counts
| Number of licensees | Procedure |
| 1 employee | Classic individual procedure. |
| 2 to 9 employees | Consultation of the CSE (if present) and information of the administration. |
| 10 employees and more | Implementation of an Employment Protection Plan (PSE) if the company has more than 50 employees. |
6. Departure: Notice and end of contract
The notice period begins on the date the letter is first presented. Its duration often varies between 1 and 2 months depending on seniority (unless more favorable provisions of your collective agreement).
If you exempt the employee from carrying it out, you must pay him compensatory compensation. Within the framework of an accepted CSP, the contract is terminated by mutual agreement at the end of the reflection period, without notice being required.
The final word: After
Layoffs are a challenge for those who leave, but also for those who stay (and those who decide). A 2024 study highlights that “survivor syndrome” often affects remaining teams, creating a climate of insecurity.
My advice: Once complete, communicate with your remaining teams. Be factual about the health of the company and the vision for the future. Legal formality protects your business, but empathy protects your corporate culture.
