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French labor law
TALINK 2024-05-09

The current French Labor Code is designed to protect the rights of employees and satisfy the economic interests of businesses. Labour relations are governed by the Labour Code and industry-specific negotiated agreements, which reflect industry practices. Promote employee profit sharing and employee stock ownership plans through income tax and payroll tax incentives. Flexible working hours and shifts are available to accommodate production conditions.


The most common form of employment contract is the non-fixed-term employment contract (CDI), which is generally written in French (not necessarily in writing). The employment contract must specify the employee's remuneration, job description, working hours and place of work. The employer can change the employee's labor contract, but whether it is a substantial change or a minor change in the working environment, it needs to obtain the consent of the employee. Enterprise management personnel do not sign labor contracts with the enterprise, and their appointment, remuneration and removal are clearly stipulated in the articles of association of the company. Termination of the employment contract may be initiated by the employee (resignation) or by the employer (dissolution). Except for the probationary period, employers must give genuine and serious reasons for dismissal and must comply with legal procedures. In the process of recruiting foreign employees (except for EU member states, European Economic Area, Switzerland), the enterprise also has the obligation to check the employee's residence permit and work permit.


Corporate layoffs can be individual or collective. If it is personal, it must be discussed with the employee in advance. If the layoff is of a collective nature, the employer must notify and consult with the staff Committee. Individual redundancies or collective redundancies of two to nine employees can only be made seven days after the consultation, and if there is a reduction of managers, it must be made after 15 days.


【 Working hours 】 The legal working hours of employees in French enterprises are 35 hours per week.
The maximum working hours are 10 hours per day and 48 hours per week. Over the 12-week period, the average maximum work week was 44 hours.
Working hours other than legal working hours are overtime hours. The statutory maximum amount of overtime per year is 220 hours, or 39 hours per week for 47 weeks per year. If both the employee and the owner agree and there is a collective agreement, the working hours may be extended (optional working hours system). The 35-hour work day, night work regulations, daily and weekly rest periods and holiday regulations do not apply to company officers.

According to the law implemented on 1 October 2007, employees who work overtime are provided with an important incentive mechanism, and overtime wages are not subject to social security and personal income tax, and can be reduced by up to 21.5% of the employee's salary.
Paid leave can be taken separately and French employees are entitled to 5 weeks of paid leave per year. Employers can deny employees leave if their work requires it, but they must allow them to take at least four weeks off between May 1 and October 31. In addition to paid holidays, employees are entitled to 11 statutory holidays and private leave (for weddings, births and funerals) per year. Employees without special conditions should have at least 1 day off per week, that is, Sunday. The government can also allow temporary Sundays without rest, and employees who work on Sundays can receive overtime pay and enjoy an extra day off.


The French security system includes four types of insurance: health insurance (sickness, maternity, disability and death), pension insurance, family benefits and workers' compensation.
The social security contributions of employees and enterprises are collected by the French Social Security and Family Benefits Collection Federation (URSSAF). Corporate employers pay the largest share, 42 percent of pre-tax wages,
The employee share is about 20%. Low-wage employees, depending on the size of the company (more than or less than 20 employees), share 17% to 19% of the statutory minimum wage (SMIC), which has been significantly reduced.

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