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.

Legal Minimum 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:

• Employees with Less Than One Year of Service: No legal minimum notice period applies.
• Employees with One Year or More of Service (Dismissal for Reasons Other Than Serious Misconduct):
  • One month for employees (article L. 123-1 of the French Labour Code).
  • Two months for employees with supervisory roles (article L. 123-1 of the French Labour Code).
• Dismissal for Serious Misconduct: No legal minimum notice period applies (article L. 123-2 of the French Labour Code).

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).

Notice Periods in Employment Contracts

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

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.

Conditions for Severance Pay Entitlement

An employee is entitled to severance pay in Reunion if they meet the following conditions:

• The termination must be initiated by the employer, such as dismissal for economic reasons or redundancy. Resignation, retirement, or termination due to the employee's serious misconduct do not generally qualify.
• The employee must have completed at least eight months of continuous service with the employer.

Calculating Severance Pay

The calculation of severance pay in Reunion is based on two factors:

• Length of Service:
  • 1/4 of a month's gross salary per year of service for the first ten years.
  • 1/3 of a month's gross salary per year of service beyond ten years.
• Gross Salary: The average gross monthly salary over the last twelve months before termination or the last three months if more favorable to the employee.

Exceptions to Severance Pay

Despite meeting the standard conditions, certain circumstances can lead to the loss of severance pay entitlement:

• If the termination is due to the employee's serious misconduct, the severance pay entitlement is forfeited.
• Employees under fixed-term contracts or temporary employment contracts may not be eligible for severance pay.
• In cases of dismissal for economic reasons, employees who refuse a comparable redeployment offer from the employer may lose their severance pay entitlement.

Additional Notes

• Collective bargaining agreements or employment contracts can sometimes provide enhanced severance pay entitlements beyond the legal minimums.
• Severance pay is generally exempt from taxation and social security contributions in Reunion.

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.

Types of Termination

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.

Procedures for Dismissal for Personal Reasons

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.

Procedures for Dismissal for Economic Reasons

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.

Legal Disputes

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.