France Labor Management QA

Email: par4ww@evershinecpa.com
Manager Christine Yang, speak French, English and Chinese

LRC – France Labor Regulations

LRC-FR-20.10
What must be included in the contents of a labor contract in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1221-2 to L1221-26.
Whether written or not, the employment contract must contain the following information:

1. the work to be performed by the employee.
2. the compensation to be paid by the employer.
3. the legal subordination of the employee to the employer.

LRC-FR-20.11
Does France arrange labor contracts in the fixed term?
What should be the length of the labor contract in France?

Evershine RD:
A written work contract is not mandatory except in certain typical situations (eg: fixed term, part-time).

Fixed-term contracts
A short-term contract may only be used:

•  to replace an employee who is temporarily absent
•  to deal with a temporary increase in business activity
•  for seasonal work
•  in business sectors where fixed-term contracts are traditional (tourism, entertainment, etc.) and
•  for trainees or apprentices.

The maximum duration of a short-term contract—or of an initial contract and the one allowable renewal – is 18 months.
This duration may be reduced to 9 months or increased to 24 months.

LRC-FR-20.20
What is the minimum age for hiring a new employee in France?

Evershine RD:
According to French Code (as amended), arts. L4153-1, L5212-2.
The minimum legal age for employment in France is 16.

LRC-FR-20.40
Is it a requirement for employers in France to conduct a pre-employment background check?

Evershine RD:
According to the French Labor Code (as amended), art. L1221-6.
Employers can require job applicants to provide information only if it is linked to the open position and aimed at assessing the applicant’s professional skills.
Criminal record checks are permitted for specific positions, such as security staff, people working with vulnerable individuals or regulated roles in the financial sector.

LRC-FR-20.50
Is the Non-Competition indemnity clause in a labor contract in France having legal effect?

Evershine RD:
According to Law No. 2018-670 on the Protection of Business Secrecy, 2018.
Pursuant to rulings handed down by the French Supreme Court, a noncompete clause in French employment contracts must be limited in time (maximum two years) and geographic scope (e.g., French territory).
Its implementation must be fair and necessary to protect the company’s interests.

The contract must specify payment to the employee in compensation for the temporary loss of employment freedom (usually between 20 percent and 40 percent of the employee’s salary at termination, paid during the entire prohibition period), which cannot be reduced because of the reason for termination (e.g., poor performance, misconduct).
The company can waive the noncompete clause if allowed by the employment contract.
Anyone found to have unlawfully acquired, used, or disclosed a trade secret may be held civilly liable.
All rights and actions concerning the protection of trade secrets are subject to a five-year statute of limitations.

LRC-FR-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in France?

Evershine RD:
According to the French Labor Code (as amended), arts. 1132-1, 1142-1 to 1142-8.
Employers may not discriminate against employees or prospective employees based on origin, sex, lifestyle, sexual orientation, age, family situation or pregnancy, genetic characteristics, membership or nonmembership in an ethnic group, nation or race, political beliefs, trade union activities, religious beliefs, physical appearance, surname, state of health or disability.
Employers must provide men and women equal pay for equal work.
Companies with more than 50 employees must complete an annual ‘equality report’ that compares the average monthly salary of men and women in each professional category.
Companies with more than 300 employees must provide additional information, including the number of women who are in the top 10 in salary in the company.

LRC-FR-50.10
Can the employer in France collect, or process data transmitted by employees over the internet?

Evershine RD:
According to the French Labor Code (as amended), arts. L2323 (French).
Employers can observe employees’ e-mails and use of the Internet to ensure network security and limit risks of abuse.

LRC-FR-60.10
What are the regulations on working hours in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L3121-1 to L3121-4.
Under French law, the standard workweek is 35 hours.
Employees may be required to work more than 35 hours per week, but all hours over 35 must be compensated as overtime.

LRC-FR-60.30
What are the regulations on overtime hours in France? What is the overtime premium rate in France?

Evershine RD:
According to the French Labor Code (as amended), art. L3121-36.
Employees required to work additional hours beyond the standard workweek of 35 hours are entitled to overtime pay based on the following criteria:

• 125% of the normal hourly wage for the first 8 hours and
• 150% for every additional hour.

LRC-FR-60.50
Is it common to pay a 13^th month’s salary in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L3312-2 to 3312-5.
There are various incentive plans set forth in the Labor Code, including profit-sharing, stock options and free allotment of shares.
Companies with more than 50 employees are required to offer a profit-sharing plan negotiated as part of a collective agreement with employee representatives.
Employers may also pay year-end bonuses.

LRC-FR-70.10
What are the regulations on general leave policy for employees in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L3141-3 to L3141-8.
Employees are entitled to 5 weeks of annual leave accrued at the rate of 2.5 days per month during a reference period from June 1 to May 31 of the following year.
At least 12 consecutive days of leave must be taken between May 1 and Oct. 31.
Employees cannot be forced to take their leave in another period.
However, employers may refuse or postpone employees’ vacations for legitimate business reasons.
Unused leave in most cases cannot be carried forward.

LRC-FR-70.20
What are the public holidays in France?
What is the overtime premium rate during public holidays in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L3133-1 to L3133-12.
France observes the following 11 public holidays:
Jan 1: New Year’s Day
Easter Monday
May 1: Labor Day
May 8: End of World War II
Ascension (40 days after Easter Sunday)
Whit Monday (Pentecost)
July 14: Bastille Day
Assumption
Nov 1: All Saint’s Day
Nov 11: Remembrance Day
Dec 25: Christmas
An employee required to work on May 1 is entitled to 200 percent premium pay.
French law is silent as to whether employees required to work on the other public holidays are compensated at a higher rate than normal salaries.

LRC-FR-70.30
What is the maternity leave policy for female employees in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1225-1 to L1225-30.
Under French law, employees are required to take maternity leave applying the following formula:

Mothers who suffer an illness during pregnancy are entitled to 2 more weeks before the childbirth and 4 more weeks after the childbirth.
A female employee cannot be dismissed during her entire pregnancy (starting on the date of the doctor’s certificate) or during the 10 weeks following her return to work, except for gross misconduct or the employer’s impossibility to maintain the contract.
When returning to work, the mother is guaranteed the same or equivalent job.
Employees with at least one year’s service on the date of the birth can take unpaid leave up until the child’s third birthday or return to work on a part-time basis.

LRC-FR-70.40
What is the paternity leave policy for male employees in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1225-35 to L1225-36.
Working fathers are entitled to 3 days’ leave upon the birth of their child.
In addition, they are granted 11 consecutive days of paid paternity leave (including weekends), 18 days in the event of multiple births, within the 4 months following a child’s birth.
Effective July 1, 2021, working fathers are entitled to 28 days of paid paternity leave upon the birth or adoption of their child.
New fathers will be required to take at least 7 days of leave immediately after the birth of a child.
Working fathers with at least one year’s service on the date of the birth can take unpaid leave up until the child’s 3rd birthday or return to work on a part-time basis.

LRC-FR-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in France?

Evershine RD:
According to the French Labor Code (as amended), art. L1226-1 and L3142-1, L3142-4.

Sick leave:
An employee’s absence due to illness suspends the work contract and the employer’s obligation to fully compensate the employee.
Over the first 30 days of absence, the employee is paid 90% of the gross salary he or she would have earned had he or she continued to work.
For the following 30 days, the employee receives 2/3 of this salary.
These periods are increased by 10 days per 5 years’ service over and above the initial period of 1 year, but the full period of paid sickness absence may not exceed 90 days.
This applies (subject to more favorable provisions) where the employee:

•  has at least one year of service within the company,
•  has notified the employer of his or her absence within 48 hours and provided a medical certificate if applicable,
•  is covered by social security, and
•  benefits from medical treatment in France or another EU member state.

If sick leave lasts longer than 30 days, the employee must undergo a medical examination before returning to work.

Family leave:

Any employee may take paid family leave of:

•  4 days for her/ his own wedding (without distinction between civil or religious ceremonies),
•  4 days for his/ her own civil union,
• 1 day for his/ her child’s wedding,
• 5 days for the death of a child (7 days of the child is under age 25),
• 3 days for the death of a spouse or partner,
• 3 days for the death of a close relative (father, mother, parents-in-law, siblings), and
• 2 days in case of occurrence of a disability of a child.

LRC-FR-70.60
What are the regulations on pension benefits and social security insurance benefits for employees in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L3511-1 to L3511-11.
The legal retirement age in France is gradually increasing to 67 years by 2020.
Employers and employees pay contributions to health insurance (including sickness, maternity, disability, and death), the national pension scheme, and unemployment insurance.

LRC-FR-70.70
What are the regulations on Workers’ Compensation for employee in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1226-6 to L1226-22.
Benefits for accidents at work and occupational disease are paid by the local Health Insurance Fund.
Any accident at work must be reported to the employer within 24 hours.
In turn, the employer must report the accident to the Health Insurance Fund within 48 hours.
The injured worker is entitled to their full wage for the day of the accident which is paid by the employer.
Thereafter, the worker is paid a daily allowance by the Health Insurance Fund.

LRC-FR-80.05
Can the employee in France join labor union?

Evershine RD:
According to the French Labor Code (as amended), arts. L2141-1, L2141-4.
The Labor Code gives employees the right to organize in unions, and the constitution gives them the right to strike.

LRC-FR-80.06
How to handle labor dispute in France?

Evershine RD:
According to the French Labor Code (as amended), art. L1421-1 to L1421-2, L2522-1.
Employee disciplinary sanctions must be specified in each employer’s inhouse regulations. These usually include:

• warning,
• temporary suspension,
• transfer,
• demotion and
• dismissal.

Fines and pecuniary sanctions are illegal, as are sanctions based on discrimination.
Discipline must be imposed within 2 months of the employer’s learning of the infraction.
Employers – both the corporate entity and its owners and senior managers – are liable under both civil and criminal law for noncompliance with French Labor Law and regulation.
Individual disputes arising between an employer and the employee are heard by the Labor Tribunal.
Collective disputes are heard by the Tribunal of First Instance.
However, before going to court, the parties may seek to resolve their dispute through conciliation, mediation, or arbitration.

LRC-FR-90.10
What are the regulations on workplace safety and health for employees in France?

Evershine RD:
According to French Labor Code (as amended), Part Four (French).
Under the Labor Code, employers must ensure that the workplace is clean and sanitary and must develop policies and practices.
Employers also must provide practical and appropriate safety training to employees.
Employers with more than 50 employees must establish a health, safety and hygiene committee composed of employees designated by the members of the works council and the staff delegates.
This committee holds quarterly meetings and has some vote powers over health and safety issues in the workplace.

LRC-FR-100.10
What are the circumstances that an employer can terminate an employee in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1231-1 to L1233-18.
An employer may terminate an employment contract unilaterally only if there is a real and serious cause.
Dismissal without cause is considered abusive treatment and can result in damages of up to 2 years’ salary for the employee.
Just cause for dismissal can be personal or economic.
Personal reasons for which an employee can be justifiably terminated include disobedience, violence or verbal abuse, theft, repeated unauthorized leave, inappropriate behavior in the workplace, sexual/ moral harassment, professional inadequacy, and nonachievement of objectives.
Economic reasons for dismissal include abolition or transformation of positions due to financial difficulties, restructuring to protect the company’s competitiveness, and winding up of the business.

LRC-FR-100.11
What is the notification period for terminating an employee in France?
How much is the severance pay?

Evershine RD:
According to the French Labor Code (as amended), arts. L1231-1 to L1233-18 and L1234-1 to L1234-13.
Except in cases of gross misconduct, a notice period during which the worker continues in employment, the duration of which depends on the employee’s length of service (the employer may ask the employee not to work during the notice period and pay compensation in lieu of notice).
The notice period is generally between one and three months.
Employees with at least 8 months of service dismissed for a reason other than gross misconduct are entitled to ¼ of a month’s salary per year of service up to 10 years and 1/3 of a month’s salary per year above 10 years.
In cases of unfair dismissal, minimum awards are as follows:

• 3 months’ salary for employees with at least 2 years’ seniority in a company with at least 11 employees or
• a half months’ salary for employees with less than 1 year of service in companies with fewer than 11 employees.

Maximum damages for unfair dismissal are 20 months’ salary for employees with at least 30 years’ service at a company that has at least 11 employees.
Employers can decide to exempt employees from the performance of their notice periods (which typically vary from one to three months) provided the employee is paid in lieu of the end of the notice period.

LRC-FR-100.12
What is the reporting requirement for employer in France to notify the termination of employees to the competent authority?

Evershine RD:
The employer will have to inform the Labour Authorities in writing of certain details of the redundancies, within 8 days of the sending of the dismissal letters.
A special procedure applies in the case of a dismissal for economic reasons or when the dismissal concerns a ‘protected employee’ (e.g. members of the social and economic council, and trade union delegates notably).
The social and economic council must be informed and consulted (with an advisory but formal vote of its members) when a mass redundancy is planned, or for the planned dismissal of a protected employee or physically disabled employee.
When a company employs more than 50 workers, trade unions may be involved in a mass redundancy procedure to negotiate an ‘employment saving plan’.

LRC-FR-100.20
What are the regulations on mass layoffs in France?

Evershine RD:
According to the French Labor Code (as amended), arts. L1233-21 to L1233-45.Dismissals can be considered mass layoffs where 2 or more employees are at risk of dismissal over 30 days.
In general, mass layoffs are allowed if they result from an employer’s economic difficulties, from significant changes in technology, or from the employer’s need to restructure to remain competitive.
If an employer has at least 50 employees and seeks to dismiss 10 or more within 30 days, it must draft a plan that limits as much as possible the number of employees to be laid off.
The French labor authorities must also be informed of the proposed layoffs.
If the employer does not establish and follow a plan for a mass layoff or if a court finds the plan insufficient, all layoffs are voided, and dismissed employees must be given their jobs back.

LRC-FR-100.30
What is the time limit for employers in France to pay employees upon termination?

Evershine RD:
Severance compensation is paid upon the gross monthly salary of reference and the years of seniority before the termination of the contract.
On the other hand, labor compensation for unfair dismissal is paid after a judge from the labor court recognizes damages to the employee for the unfair dismissal.

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