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04/06/2014 PROFILE > Chef d'entreprise , Direction , Service comptable

Court of cassation: what compensation should be paid in the event of dismissal for incapability without reclassification?

Article L. 1226-14 of the Labour Code makes provision that "termination of an employment contract [where the employer is unjustified or unable to offer a job to the employee or where the latter has refused the job] opens up the entitlement, for the employee, to compensation to an amount equal to that of the compensation for notice".

However, the judges at the Court of Cassation have reiterated in a ruling of 30 April 2014, that "compensation for which provision is made under article L. 1226-14 of the Labour Code, […] of which the amount is equal to that for which provision is made under article L. 1234-5 of the Labour Code, does not have the nature of compensation for notice".

This compensation cannot therefore lead to the entitlement for the dismissed employee to any compensation for paid leave during the notice period.

Consult decision no. 12-28374 D of 30 April 2014 of the Court of Cassation.