Looking Ahead 2024: France

Impact of recent legislations/case law

 

• Olympic Games

Following the law adopted on 19 May 2023, companies will be able to benefit from certain flexibility during June-September 2024 to cater to the upcoming Olympic games. This will, namely, include the possibility of more easily require staff to work on Sundays.

 

• Alignment of French law with EU case law regarding holiday accrual during sick leave

In a series of rulings in September 2023, the French Supreme Court aligned French law with European law and confirmed that employees continue to accrue rights to paid holidays during their sick leave.

This has led to an increase in claims, and several companies have already been condemned to pay compensation to employees based on this new caselaw. The practical and financial impact of this caselaw is still unclear as to whether employees will only be able to claim unpaid holiday rights for the last 3 years.

The French Government intends to clarify the situation via a new law, which is currently before Parliament and which is expected to be passed in spring 2024. Meanwhile, employers should identify which employees are on long-term sick leave and seek legal advice to ensure that they have taken the necessary measures to limit the impact of this new case law.

 

• The “value-sharing” law of 29^th November 2023

Companies employing more than 50 staff are required by 30 June 2024 to enter into negotiations to update their mandatory profit-sharing scheme regarding rules that apply in cases of exceptional profits.

 

• The transposition of the EU Directive on transparent and predictable working conditions

Following the transposition into French law of EU Directive 2019/1152, employers have been subject since 1 November 2023 to new information requirements when hiring employees. In terms of internal job openings and international secondments, they need to ensure that they have properly updated their employment contract and international secondment contract templates.

 

• The transposition of the EU Directive on work-life balance for parents and carers

Following the transposition into French law of EU Directive 2019/1158, employees can benefit from certain longer family-related leaves of absence and company leave policies should be updated accordingly.

 

• The transposition of the EU Corporate Sustainability Reporting Directive

Following the transposition into French law of EU Directive 2022/2464, EU and non-EU companies listed on European markets with over 500 employees and exceeding one of the following thresholds: balance sheet > €20m or turnover > €40m, will be obliged to publish a sustainability report in line with the Directive’s requirements starting in 2025. Other EU companies, including subsidiaries of non-EU groups exceeding 2 of the 3 following thresholds: employees > 250, balance sheet > €20M, and turnover > €40M will have to publish this same report from 2026 onwards. This sustainability report will need to include extensive information regarding the company’s workforce and requires the prior consultation of the company’s Works Council.

Upcoming legislations

• New immigration law

A new law on immigration was voted on 19 December 2023 but has not yet been published pending a review by the French Constitutional Court. If confirmed, the law will allow more flexibility for the hiring of non-EU employees in sectors of activity facing work shortages and for inter-group transfers, but also higher sanctions in cases of non-compliance with immigration rules.

 

• New bill on discrimination testing

Adopted by the French Parliament’s National Assembly in December 2023, a new bill is currently under review by the Senate. The law would allow a new type of statistical testing with mandatory remedial action imposed on companies in cases of test results demonstrating discriminatory practices and a maximum fine equal to 1% of the company’s total wage bill in cases of non-compliance.

 

• New bill on senior employees in the workplace

Following the pension reforms of 2023, the French government is envisaging new legislation on the working conditions of senior employees, which is expected in the summer. This could include stricter rules on early retirement schemes, more flexibility in hiring senior employees, and the obligation to publish information on the percentage of senior employees in the workplace along the same lines as the existing equal opportunity index.

 

• New legislative package aims to revitalize the French employment market

During President Macron’s New Year’s press conference, a possible new legislative package similar in scope to the reforms carried out in 2017 was announced. This could, namely, include measures such as stricter time bars in which to challenge dismissals, reducing the number of different thresholds which trigger different employment obligations and reducing parental leave from 3 years (unpaid) to 6 months (full pay).