• Reform of staffing thresholds

    Two decrees to apply the French Pacte Law (law relating to business growth and transformation), dated 31 December 2019, specified the new procedures for the unified calculation of the staffing thresholds and for rationalising staffing threshold levels (prioritising the thresholds of 11, 50 and 250 employees). Several of these measures came into force on 1 […]

  • Unemployment Insurance Reform

    Three decrees, dated 26 July 2019 and 30 October 2019, introduced several measures to reform unemployment insurance. Several of these measures came into force on 1 November 2019. Changes concerning employees Among the significant measures that have applied since 1 November, we note that: – the employee is now entitled to unemployment benefits after working […]

  • Case law developments in labour law

    Two decisions handed down in October respectively by the Cour de Cassation (C. Cass. 16.10.2019) and the Appeal Court in Paris (C.A. Paris 30.10.2019) clarified the effects of a settlement agreement and the validity of the “Macron” scale. Scope of a settlement in employment law Settlement agreements are frequently used in labour law to resolve […]

  • The social security funding bill

    The members of parliament have been considering the social security funding bill for 2020 since 22 October. Several measures could come into effect on 1 January 2020. The special purchasing power bonus (also known as the “Macron” bonus) The bill provides for a continuation of the special purchasing power bonus that was introduced in December […]

  • The reform of retirement saving

    The PACTE law of 22 May 2019 created a new legal framework for retirement savings plans. The application procedures of the new rules to apply as of 1 October 2019 are defined by three texts issued by the executive. The new legal framework of the retirement savings plans (PER) On and after 1 October 2019, […]

  • Measures against illegal employment

    The French act of 5 September 2018 referred to as the “Professional Future Act” strengthened measures against illegal employment. Its application is now effective following publication of a decree on 4 June 2019. Extended right to discovery Pursuant to Article L.8271-6-2 of the French Labour Code, inspectors who have authority to investigate illegal employment offences […]

  • Obligation to employ disabled workers

    The French act of 5 September 2018 referred to as the “Professional Future Act” changed the obligation to employ disabled workers. Two implementing decrees of 27 May 2019 specify the new rules that will apply from 1 January 2020. Employment obligation according to an approved agreement The company must sign an approved agreement providing for […]

  • Non-disclosure clause in employment contracts

    A non-disclosure clause may be included in the employment contract of any employee who has access to strategic or sensitive information or documents (plans, studies, methods, designs, manufacturing processes, trade secrets, financial data, business information, etc.) within the framework of their work, and the disclosure of which would be detrimental to the employer. Condition of […]

  • Deductible debts for real estate wealth tax

    On 1 January 2018, French Wealth Tax, i.e. Impôt de solidarité sur la fortune (ISF), was abolished and replaced with a new wealth tax on real estate, the Impôt sur la fortune immobilière (IFI). Whereas the base for ISF consisted of the taxpayer’s entire wealth, the new IFI only applies to real estate and interests […]

  • PACTE, the action plan for business growth and transformation

    The Plan d’Action pour la Croissance et la Transformation des Entreprises (PACTE) aims to give businesses the means to innovate, grow, make transformations and create jobs. The PACTE law was finally adopted by Parliament on 11 April 2019 but is undergoing review by the French Constitutional Court. Subject to the outcome of this review, we […]

  • The Scope of Settlements in Labour Law

    The settlement or settlement agreement is a contract by which the employer and the employee conclude a dispute. After an employment agreement is terminated, it is legally required that such an agreement be made, so it should not be confused with a termination of the employment agreement according to a collective bargaining agreement, which is […]

  • The supplementary social protection reform

    Since 1 January 2016, companies have been required to offer their employees a minimum level of supplementary social protection. By 1 January 2020 they will be required to revise their employment agreements and other documents concerning their employees’ coverage of health costs. Two decrees, dated respectively 11 January 2019 and 31 January 2019, have provided […]