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Dismissal in Tunisia 2026: valid grounds, procedure and severance
Valid grounds, notice, end-of-service pay and its cap, and damages for unfair dismissal under the Tunisian Labour Code in 2026.
Termination of an open-ended contract (CDI) by the employer is governed by the Labour Code, mainly articles 14 to 24, as amended by Law No. 96-62 of 1996. These articles set the notice period, the end-of-service pay and the damages for unfair dismissal.
Law No. 2025-9 of 21 May 2025 on the organisation of employment contracts and the ban on labour subcontracting made the CDI the rule, regulated the probation period and limited fixed-term contracts. It did not change the amount of end-of-service pay or the scale of damages.
This article answers three questions employees and employers both ask: is the dismissal valid? How much is the severance pay? What damages apply if the dismissal is unfair?
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A dismissal must rest on a real and serious cause and follow the legal, regulatory or contractual procedures. If either condition is missing, it is unfair (art. 14 ter). The employer must state the reasons in the letter sent to the employee.
Two families of grounds are accepted:
Personal grounds, including serious misconduct. Article 14 quater gives examples, such as absence from or abandonment of the post without authorisation, being clearly drunk at work, violence and unjustified refusal to follow work instructions.
Economic or technological grounds, which require prior notice to the competent regional labour inspectorate, with the reasons and the list of workers concerned (art. 21), before the specific procedure for this type of dismissal.
The judge assesses whether the cause is real and serious and whether procedures were followed, based on the evidence produced (art. 14 quinquies). The employer therefore needs a documented file: written warnings, reports, witness statements and, where relevant, proof that the employee was heard.
Procedure and notice
An individual dismissal usually follows these steps:
Send the employee a registered letter stating the reasons for dismissal (arts. 14 bis and 14 ter).
Give at least one month's notice before termination (art. 14 bis), unless the applicable collective agreement or the contract provides for a longer period.
During the whole second half of the notice period, the employee may be absent to look for another job. These absences count as actual work, with no reduction in pay or allowances.
Follow the disciplinary procedure set by the sector collective agreement or internal rules: summons, hearing, disciplinary board where one exists.
The Code distinguishes three separate amounts: the indemnity for failure to give notice, the end-of-service pay and the damages for unfair termination (art. 23). They can be combined in the same case.
End-of-service pay: basis and cap
An employee on a CDI dismissed after the probation period is entitled to end-of-service pay, except in case of serious misconduct (art. 22).
Article 22 sets the amount:
Basis: one day's pay per month of actual work in the same company.
Cap: the payment may not exceed three months' pay.
Exception: more favourable provisions in a law or collective agreement apply.
Illustrative example (the way daily pay is computed varies with the collective agreement and pay structure):
Employee with 36 months' service and a monthly salary of 1,500 dinars: approximate daily pay of 1,500 divided by 26 days, about 57.7 dinars.
The payment equals 36 days, about 2,077 dinars, below the three-month cap (4,500 dinars).
The cap is reached at roughly six and a half years of service; beyond that, the statutory payment no longer increases unless the collective agreement provides a better scale.
For a quick estimate, E-Tafakna's free severance pay calculator applies the rule of one day's pay per month of actual work with the three-month cap. The sector collective agreement still needs checking, as several provide higher amounts.
Unfair dismissal: how damages are calculated
Damages for unfair dismissal are added to the end-of-service pay and the notice indemnity; they do not replace them. The employee cannot waive them in advance (art. 23). Article 23 bis sets the amount by case:
Dismissal without real and serious cause: between one and two months' pay per year of service, never exceeding three years' pay in total.
Real and serious cause but procedure not followed: between one and four months' pay, depending on the nature of the breach and its effect on the employee's rights.
The judge sets the amount within these limits based on the facts of each case. Example: an employee with five years' service dismissed without serious cause may obtain between five and ten months' pay, plus about sixty days' pay as end-of-service pay if there was no serious misconduct.
What about fixed-term contracts?
The article 22 payment applies only to the CDI. If the employer unfairly ends a fixed-term contract (CDD) before its term, the employee is entitled to damages equal to the pay for the remaining period of the contract or the work still to be done (art. 24).
Since Law No. 2025-9, a CDD is allowed in only three cases; it must be written and state its term, or it is deemed a CDI (new art. 6-4). The CDI rules on dismissal and end-of-service pay then apply.
Time limit and end-of-contract documents
Time limit: the claim for damages is filed with the labour court registry within one year of the termination, or the right lapses (art. 23).
Certificate of employment: at the end of the contract, the employee may require a certificate stating the start and end dates, the type of job and the periods worked (art. 27).
Useful documents: contract and amendments, payslips, dismissal letter, written exchanges, and any proof of length of service and actual pay.
To prevent disputes from the hiring stage, a clear written contract records pay, length of service and job category. E-Tafakna offers a CDI contract template and a CDD contract template that follow Law No. 2025-9, with electronic signature using TunTrust certificates.
Frequently asked questions
What is unfair dismissal in Tunisia?
A dismissal without a real and serious cause, or without following the legal, regulatory or contractual procedures (art. 14 ter of the Labour Code).
How much is severance pay in Tunisia?
One day's pay per month of actual work in the same company, capped at three months' pay, unless a collective agreement is more favourable (art. 22). It is not due in case of serious misconduct.
How much compensation for unfair dismissal in Tunisia?
Between one and two months' pay per year of service, capped at three years' pay. If the cause is serious but the procedure was irregular: between one and four months' pay (art. 23 bis).
What is the notice period for dismissal in Tunisia?
At least one month, by registered letter (art. 14 bis), unless the collective agreement or contract provides longer.
How long do I have to challenge a dismissal?
One year from the termination, before the labour court, or the claim lapses (art. 23).
Sources
Labour Code, Law No. 66-27 of 30 April 1966, as amended by Law No. 96-62 of 1996, arts. 14 to 14 quinquies, 21, 22, 23, 23 bis, 24 and 27 (text published by the Tunisian Observatory for the protection of children's rights, observatoire-enfance.tn)
Law No. 2025-9 of 21 May 2025 on the organisation of employment contracts and the ban on subcontracting, Official Gazette (JORT) No. 61 of 23 May 2025, new art. 6-4 (arp.tn)
DLA Piper, New legislation overhauling Tunisia's employment framework, 2025
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Dismissal in Tunisia 2026: valid grounds, procedure and severance
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