In case of dismissal for personal or economic motives, the Macron decrees allow for an employer to specify, after having sent the dismissal letter, the motives that were already outlined in the letter. This is a softening of the obligations regarding the justification/motivation of dismissals that will nevertheless not allow for employers to entirely compensate for a total absence of justification in the original letter. This measure will enter into effect upon publication of a decree that will define the conditions and relevant deadlines. At the latest, it shall enter into effect on January 1, 2018.
The French supreme court (Cour de cassation) ruled that that a dismissal was valid when the employee, a sales representative, had his driving license suspended for 8 months by a Spanish court in personal circumstances. The judges recognized that the use of a car was essential to the employee’s functions and that he was no longer able to work.
According to a draft text, the social security ceiling should be set at € 3,311 per month in 2018 (€ 39,732 per year). This ceiling is used to calculate the deductions of certain social security contributions made each month on the salaries of employees. This increase has implications for the calculation of many benefits and entitlements for employees.
In order to secure dismissals, the decree of 22 September 2017, regarding the forseeability and securisation of emploment relations, sets the framework for the conditions of formalities of terminating the contract. The employer may further specify the grounds in the dismissal letter, after said letter has been notified to the employee. These provisions require an application decree for an entry into force set for January 1, 2018 at the latest.
An employee with executive status who criticizes and insults the employer in front of employees and commits defamation by accusing the employer of “stealing “ rest days, in order to encourage the employees to rise up against the employer oversteps the limits of freedom of speech. Such behavior that is aimed at destabilizing the company can justify a termination for gross misconduct.
The statutory dismissal indemnity is increased: up to ten years of service, it increases to a quarter of a month’s salary (instead of 1 / 5th of a month) and then one third of a month of service (no change for this period)
The Works Council, the Health, Safety and Working Conditions Committee, and the Staff Delegates merge to become the Social and Economic Committee. This single structure takes over the prerogatives of the existing bodies. There is also provision for the creation of a company council which, in addition to the information-consultation role, has the capacity to negotiate certain types of agreements
An agreement setting up working time under an annual lump sum in days must provide for an effective and regular follow-up by the employee’s hierarchy of the times indicated and not just schedule a weekly time-table. The French supreme court has just ordered a company to pay overtime to employees whose working time agreement was deemed invalid
The President’s reform promises to increase flexibility and reduce risk in French labour law. It also strengthens workers’ rights
President Macron’s reforms has two main goals: increase flexibility for companies and reduce risks. The reform is considerable and affects nearly all parts of French labour law