E-Newsletter in French Employment Law: employment market, purchasing power and Social Security

E-Newsletter in French Employment Law: employment market, purchasing power and Social Security

On the occasion of the start of the year 2023, the employment law team at BDO Avocats in Paris reviews the news of the end of 2022 by successively addressing the Employment Market Law (“loi Marché du travail”), the Purchasing Power Law (“loi Pouvoir d’achat) and the update of the Official Bulletin of the social Security (“Bulletin officiel de la Sécurité Sociale”).

 

The Employment Market Law

This law was definitively adopted on November 17th, 2022 and published in the Official Journal on December 22nd, 2022.

The most significant measure is the presumption of resignation in case of abandonment of post. This measure provides that when an employee voluntarily abandons his or her post, the employer may give the employee formal notice to justify his or her absence and to return to work within a time period set by the employer. After the expiry of this period, if the employee does not go to work, he or she will be presumed to have resigned. An implementing decree setting out the terms of application of this provision, in particular the minimum time period to be respected, is still pending. In the meantime, it seems that this measure cannot be implemented in practice.

Another key measure is the suppression of unemployment insurance in the event of refusal of two indefinite-term employment contracts (“contrat à durée indéterminée”). An employee on a fixed-term (“contrat à durée déterminée”) or temporary employment contract (“contrat d’intérim”) will no longer be able to benefit from unemployment insurance if he or she refuses two offers of an indefinite-term employment contract in a similar position. An implementing decree setting out the terms of application of this provision is still pending. In the meantime, it seems that this measure cannot be implemented in practice.

The other main measures of the Employment Market Law are the multi-replacement fixed-term employment contract, the electorate and the eligibility of employees with employer's attributions and the extension of the provisions relating to the modulation of the rate of unemployment insurance contribution to be paid by employers, known as the “bonus-malus”.

 

The Purchasing Power Law

Following the publication of the Purchasing Power Law on August 18th, 2022, a decree dated December 26th, 2022 specifies the new rules relating to non-mandatory profit-sharing (“intéressement”).

As a reminder, the Purchasing Power Law has extended the possibility for companies with less than 50 employees to implement non-mandatory profit-sharing by way of a unilateral decision. The decree specifies the terms and conditions of implementation, indicating in particular the nature of the documents that the employer must submit to the French Labour administration. It also states that when the employer's unilateral decision results from a failure of the negotiations, the employer must file the minutes of the consultation of the Social and Economic Committee in addition to the disagreement minutes, containing the respective proposals of the parties.

 

The Official Bulletin of the social Security (“BOSS”)

Finally, on December 21st, 2022, the Official Bulletin of the social Security (“Bulletin officiel de la Sécurité sociale” or “BOSS”) has been updated, in particular concerning the restaurant meal costs allowance, the calculation of the general reduction of employer's contributions following the repurchase of RTT days and the optional coverage of public transport subscription costs.

Regarding the meal costs allowance, it is explained that this allowance may result from the practices of the profession. Thus, if the employee is obliged by professional practice to eat in a restaurant, the employer will pay the meal costs to the restaurant owner up to a certain limit. 

 

The employment law team of BDO Avocats in Paris is at your disposal for any clarification and/or request for additional information on these new provisions.