France: the ‘Barème Macron’ (‘Macron scale’ – employment termination compensation corridor) weakened by the European Committee of Social Rights

The European Committee of Social Rights (previously, the European Committee of Social Rights) established under the auspices of the Council of Europe, has challenged the capping of industrial labour tribunal compensation, in spite of its validation by the Court of Cassation in May. In a decision that should be made public in September but has been revealed in an article in the Le Mondepublication the European Committee of Social Rights, which is responsible for the application of the European Social Charter, has judged that the flagship measure of the 2017 labour ordinances (c.f. article No.10330) runs counter to France’s international commitments. Consequently, the so-called ‘Barème Macron’ (‘Macron scale’) which provides for an employment termination compensation scale calculated in reference to career length for contract terminations with no ‘real and serious cause’, would thus contravene the principle of ‘the right to adequate compensation or other relief in cases of unfair dismissal.’ Although the European Committee of Social Rights agreed with the CGT and FO unions, to which they had referred the matter the committee’s recommendations are not binding. “We are very surprised that the Court of Cassation is stubbornly refusing to see the problem, there are beginning to be many instances and jurisdictions that are going in our direction,” Céline Verzeletti, CGT Confederal Secretary, regretted to Planet Labor, continuing, “The compensation payments do not repair the damage and do not play any dissuasive role vis-à-vis the employers, indeed the contrary is the case. We will continue to call on the government to abolish this scale and on the industrial labour tribunals to repair the damage, outside this framework.” In February, the ILO judged the provision required regular reviews regarding its compliance with ILO Convention No. 158.