France: The New French Government Announces its Intentions for Employment

The new French government, headed by Prime Minister, Michel Barnier, has announced its roadmap. Regarding employment, the government intends to slightly raise the minimum wage but mostly concentrate its efforts on ensuring employees do not stay at this level over time. Certain industries such as the private hospitals, service, rubber, home furnishing and tourist industries are encouraged to review the salary scales set out in their Collective Bargaining Agreements.

The government has also agreed to open discussions on the recent pension reform while also seeking to address the issue of the employment rate of employees aged over 60 years old.

In an effort to reduce France’s level of debt, certain government subsidies and/or social security contribution exonerations, such as those on apprenticeships, will be reduced.

Key Action Points for Human Resources and In-House Counsel

Check if you operate in an industry where the salary scale is due to be reviewed. If you employ a number of apprentices, anticipate the financial impact of the reduction of government subsidies and/or exonerations.