OD FLASH | Special severance pay and occupational incapacity: seniority considered for the calculation of special severance pay does not need to be extended by the notice period

Court of Cassation, Civil Division, Social Chamber, October 22, 2025, 24-17.826, Unpublished – Légifrance

In a decision dated October 22, 2025, the Court of Cassation specified that the compensation paid pursuant to Article L.1226-14 of the Labor Code is not considered severance pay. Its payment therefore has no effect on the date of termination of the contract or on the length of service to be taken into account for the calculation of special severance pay.

In this case, an employee was declared unfit for work following an accident at work and was subsequently dismissed because she could not be redeployed. The Rennes Court of Appeal ruled that, in order to calculate the special severance pay, equivalent to twice the statutory severance pay, the employer had to include the theoretical notice period in the length of service, considering that the compensation provided for in Article L.1226-14 had the same effect as notice.

The Court of Cassation rejected this analysis and dismissed the employee’s claim for the balance of her special severance pay. It thus specified that the compensation provided for in the event of occupational disability does not have the same legal nature as compensation in lieu of notice. Seniority for the calculation of special severance pay should therefore not be increased by the length of the theoretical notice period.