• Payroll measures under the law establishing emergency economic and social measures

    French law no. 2018-1213 establishing emergency economic and social measures was passed on 24 December 2018. Companies may now pay their employees a special purchasing power premium and overtime is exempt from tax and social security contributions within a certain limit. A bonus exempt from tax and social security contributions The special purchasing power bonus […]

  • Equal pay for women and men

    The law of 5 September 2018 introduced new measures in favour of equal pay for women and men. Article L.1142-7 of the French Labour Code now requires that “the employer take into account the goal of eliminating the pay gaps between women and men.” These new provisions will be mandatory starting from 1 January 2019. […]

  • Exceptional bonuses received in 2018

    On 1 January 2019, deduction at source comes into effect, along with the calculation of a tax credit (the “CIMR” – Collection Modernisation Tax Credit) which obviates the tax on income received in 2018, which would in practice have led to double taxation in 2019. In this context, Parliament arranged that the CIMR would wipe […]

  • The Law on Trust

    The law for a “State in the service of a trust society” was adopted on 10 August 2018 in France. Several provisions of this law that came into effect on 11 August 2018 concern corrective statements, applications, proposals for corrections and notices sent since that date. This is the legal transcription of the “right to […]

  • The “Career Future” law

    The law on the freedom to choose one’s career future was adopted on 1 August 2018. This reform, the battle cry during the presidential campaign, amends the regulations concerning vocational training and apprenticeships, and various other employment-related provisions. Vocational Training The personal training account (“CPF”) is now credited in euro rather than in hours as […]

  • Tax reductions/credits and withholding tax system

    The withholding tax system will be introduced on 1 January 2019 for most taxpayers. This measure will eliminate the current interval that exists between the moment income is received and the moment it is taxed. However, the rules specific to income tax calculation are maintained, particularly as regards the allowance for dependents and the numerous […]

  • Homeworking

    French Ordinance 2017-1387 of 22 September 2017 simplified the rules governing the organisation of homeworking. Homeworking is defined as “any type of work organisation by which work that could have been done within the employer’s premises is voluntarily performed by an employee outside these premises, using information and communications technologies”. According to a survey conducted […]

  • Compensation for dismissal without any “real and serious” grounds

    Order no. 2017-1387 dated 22 September 2017 reformed the rules concerning compensation for dismissals without any “real and serious grounds.” Additionally, it also amended the rules that apply to the redress for certain irregularities and for invalidity of the termination. These measures relate to dismissals that were made since 24 September 2017. Application to dismissals […]

  • Negotiated separations

    Since 23 December 2017, companies are able to make use of a new mode of termination of the employment agreement, (which is not a dismissal) with the aim of eliminating jobs. This mode is referred to as a “negotiated separation,” and its acronym in French is “RCC.” On 17 April 2018, the Ministry of Labour […]

  • The General Data Protection Regulation

    The General Data Protection Regulation (GDPR) was adopted by the European Union on 27 April 2016 and will come into force as of 25 May 2018. Therefore, on that same date, it will become applicable in France. Privacy Requirements The GDPR will apply to all companies and other organisations within the European Union. It will […]

  • The real estate wealth tax

    As of 1 January 2018, the “wealth solidarity tax” (“ISF”) was repealed and replaced by the “real estate wealth tax” (“IFI”). While the basis for the ISF included a taxpayer’s entire asset base, the IFI includes only real estate assets and entitlements. Taxpayers affected The assessment applies to the real estate wealth of the tax […]

  • Deduction at source of personal income tax

    Deduction at source of personal income tax, while initially planned for 2018, will now not come into effect until 2019. One reason this additional time was provided was to determine certain aspects of the reform that was adopted in the context of the finance law for 2017. How deduction at source works Starting in January […]