France: Exceptional release of employee savings up to €10,000 authorized by the Purchasing Power Act: employee information
The so-called “purchasing power” law has opened the possibility of exceptional early release of profit-sharing and incentive rights, up to a limit of €10,000, upon the beneficiary’s request submitted by December 31st, 2022. This release concerns not only employees but also former employees and managers as well as their spouses who are beneficiaries of such a scheme. The amount released must be used to finance the purchase of one or more goods or the provision of one or more services.
The amounts released benefit from a favourable tax and social security regime.
By October 16th, 2022, the employer must have informed employees of the existence of this prerogative.
Key Action Points for Human Resources and In-house Counsel
The information can be communicated by any means: registered letter with acknowledgement of receipt, posting, e-mail.