Every year’s end, the French parliament votes the social security financing law that aims to control social and health spending in the next year. It determines the conditions necessary for the financial equilibrium of the Social Security and sets the spending objectives according to the revenue forecasts as of January 1st of the coming year. This year, a general relief of employer contributions in two stages was voted, on January 1, 2019 then on October 1, 2019, as well as an overhaul of the exemption related to the hiring of apprentices and a modification of the exemptions applicable in regions of France overseas. The law clarifies the legal regime of benefits paid in the context of the new collective mutual termination system (rupture convention collective) or a “mobility leave” (congé mobilité): their social and tax system is fully aligned with that of employment protection plans used in layoffs. They are therefore not subject to the tax known as the forfait social. Moreover, the forfait social is also removed for some companies on payments of incentive bonuses and profit sharing programs. Finally, new penalties are provided for illegal work (including the withdrawal of the benefit of the contribution exemptions).
Many new measures provided by law require decrees for their implementation.