What Severance Pay Rules Must Employers Follow in French Guiana?

Which Employees Qualify for Severance Pay?

• Employees on an open-ended (CDI) contract dismissed for reasons other than serious or gross misconduct generally qualify for statutory severance.
• The employee must usually have at least 8 months of continuous service with your company at the time notice is given.
• Fixed-term (CDD) employees may be entitled to an end-of-contract indemnity, except where the contract is converted to a CDI or ends for serious misconduct.
• Employees covered by a sectoral or company collective bargaining agreement may qualify for enhanced severance if that agreement sets higher rights.
• Part-time employees and those with variable hours can qualify, with severance calculated pro rata to their average pay and working time.
• Employees who resign for a legally recognized “constructive dismissal” situation or for certain protected reasons may be treated as if dismissed and gain severance rights.

What Are the Legal Timelines for Paying Severance?

In French Guiana, you should pay severance at the latest on the employee’s final pay date, which is typically the last working day or the end of the notice period. In practice, severance is usually included in the final payslip together with accrued salary, unused paid leave, and any bonuses due. Delaying payment beyond the contract end date can expose your company to late-payment interest and potential damages. To stay safe, calculate the severance as soon as notice is given and schedule payment for the final day of employment. Where amounts are disputed, pay the undisputed minimum on time and document any ongoing calculation review.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in French Guiana, you risk both financial and procedural sanctions under the French Labour Code. Employees can challenge the termination before the labour court (conseil de prud’hommes), which can award unpaid severance, interest, and additional damages. Non-compliance can also undermine the validity of the dismissal itself, increasing your exposure.

• Courts can order payment of the full severance plus statutory interest.
• You may owe additional damages for unfair or abusive dismissal.
• Procedural errors can lead to penalties even if the severance amount was broadly correct.
• Disputes consume management time and legal fees and can damage your local reputation.
• Repeated breaches may attract closer scrutiny from labour authorities or unions.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as https://www.playroll.com/employer-of-record does not remove the need to follow French Labour Code rules in French Guiana. The EOR is typically the legal employer on paper and is responsible for calculating and paying statutory and contractual severance. However, your company, as the client, usually defines the grounds for termination and can be held economically or even jointly responsible if instructions lead to unlawful dismissal. You should ensure your EOR contract clearly allocates severance costs, dispute handling, and documentation duties. In practice, courts may look beyond the contract and consider who truly controls the employee’s work when assigning liability.

Be 100 Percent Compliant in Offering Severance with Playroll

French Guiana’s alignment with French labour law means severance rules are technical, formula-based, and often supplemented by collective agreements. Playroll helps your team navigate these layers by mapping the applicable convention collective, checking eligibility, and applying the correct statutory or enhanced formula. You get clear breakdowns of how each euro is calculated, from reference salary to length-of-service brackets, so you can explain outcomes confidently to employees and auditors.

Beyond the numbers, Playroll builds compliant workflows around notice, documentation, and final payments, whether you employ directly or via our EOR model. We coordinate with local payroll providers, ensure severance is paid on time with the final payslip, and maintain records that stand up in a French labour court. That way, your managers can focus on fair, well-communicated exits while we handle the legal and payroll precision.