Macron's labour reforms will ensure more predictability and security for employers and more training for employees. With a total of 36 measures, the Reforms will result in profound changes to the dialogue between employers and employees, secure the costs of dismissals and ease redundancies.
1) Reinforced and simplified collective bargaining at the level of the company:
- Wider opportunities to negotiate company’s agreements (including without Union delegates).
- More possibilities to appoint Union delegates (where there is none).
2) Simplified social dialogue - one single representative body: the end of the Works Council, Health and safety committee and Staff representatives … Welcome to the Social and Economic Committee!
- Merger of the Employee representatives, the Works council and the Health and safety committee into a single body: the Social and Economic Committee (CSE): a major reform, a single place for collective discussion, much easier and less time consuming for employers.
- A Health, safety and working conditions Commission in companies with over 300 employees and a Corporate council (Conseil d’entreprise) possible by agreement.
- Strengthening the means and trainings of union representatives.
3) Termination of employment contracts - compulsory sliding scale of capped damages for unfair dismissal, increase of statutory compensation, reduction of the time limit for litigation
- Statutory compensation increased to 25 % of monthly salary per year of service (10% previously).
- Sliding scale of capped damages for unfair dismissal. In companies with over 11 employees: from three months’ salary (two years of service) up to 20 months maximum (30 years of service), with a minimum of three months (two years of service and more).
- 12 month time limit to bring court proceedings.
4) Redundancies : Geographical scope and redeployment obligation
- Appreciation of the redundancy reasons at the company or group level in France and in the same business sector (vs worldwide level) - Significant step forward for foreign groups and investors.
- Possibility for employees whose redundancy is considered to have access to a redeployment job fair on the intranet of the company.
5) This reform will be accompanied by a strengthening of employees’ training and a reduction of labour costs (reduction of employees’ and employers’ contributions) to be negotiated in the coming months
These five Reforms will be presented to the Council of Ministers on 22 September 2017 and will come into force at the end of September 2017.
- Extended construction contract
- Professional Prevention Account
- Voluntary redundancy schemes (outside PSEs/ mass redundancy plans)
- Digital Labour Code
- Dismissal standard form
- Health at work.
Save the date
We have organised a breakfast briefing on the Ordinances on 28 September 2017 in Paris (in French) at Simmons & Simmons LLP, 5 boulevard de la Madeleine, 75001 Paris. Click here for more information and to sign up for the event.
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