France Employment Legislation Changes 2024
Businesses in France will need to be ready to implement these new regulations for their employees in 2024
In this article, we will delve into the 2024 Employment Legislation Changes for Employers in France. Let’s understand the key updates and amendments in employment legislation that are expected to impact employers across various sectors.
In 2024, France introduced several significant amendments to its labor laws, affecting various aspects of employment, including recruitment procedures, sick leave policies, minimum wage adjustments, and social security contributions. These changes are crucial for employers to understand and implement to ensure compliance with French labor regulations.
Mandatory Employment Information
Employers in France are now required to provide in writing, essential information regarding the employment relationship to both new hires and existing employees. Although not legally mandated for indefinite-term contracts, it is highly recommended.
The French labor code specifies that this documentation must include
- The employer’s legal entity name,
- Trial period details, and
- Remuneration specifics, including overtime bonuses and conditions.
This information is typically conveyed through a written contract at the beginning of any employment relationship.
Sick Leave Policy Adjustments
French employees on sick leave are entitled to a daily allowance from social security after a three-day waiting period. However, starting January 1, 2024, this waiting period has been removed for cases of miscarriage within the first 22 weeks of pregnancy, with social security benefits being paid from the first day of leave.
Additionally, from July 1, 2024, the waiting period is also eliminated for abortions performed on medical grounds.
Sick leave requests or extensions based on video conference medical appointments are now limited to a maximum of three days per request or extension.
Social Security Contributions for Foreign Companies
Effective March 1, 2024, foreign companies without an establishment in France must register with the French Company Formalities Office to declare and pay social contributions for employees working in France.
This requirement ensures compliance with French labor and social security laws and eliminates the previous option for foreign companies to delegate these responsibilities to a third party in France.
Minimum Wage and Social Security Adjustments
As of January 1, 2024, the legal minimum hourly wage in France has increased to €11.65, translating to a monthly minimum wage of €1,766.92 for a standard 35-hour workweek.
Additionally, the monthly social security ceiling has risen by 5.4% to €3,864 from the earlier €3,666, with the annual ceiling now set at €46,368. This amount is revalued each year on 1 January, in line with wage trends.
Employer contribution to old-age insurance has also increased from 1.90% to 2.02%.
These adjustments align with the latest wage trends and impact the calculation of various social security benefits, including sickness and maternity leave allowances, disability pensions, and retirement benefits.
Internship Stipends and Other Monetary Adjustments
The minimum hourly stipend for internships has been increased to €4.35, up from the previous €4.05 in 2023, applicable when the internship lasts at least two months (consecutive or not). This change is tied to the revaluation of the social security ceiling.
New Regulations for Fixed-Term and Permanent Contracts
“Pôle Emploi” is now called “France Travail.” The new name will gradually appear on all documents.
A new regulation requires employers to notify employees when offering a permanent contract (CDI) at the end of a fixed-term contract (CDD) or temporary contract. This notification must be provided before the initial contract ends, allowing the employee reasonable time to decide. Employers must also inform the newly established “France Travail” of any refusal of a CDI offer within one month, as repeated refusals may result in the elimination of that employee’s unemployment benefits.
Updates to Profit-Sharing Laws
A decree from June 30, 2024, has introduced changes to the implementation of profit-sharing plans, including the allocation of bonuses to employee savings or retirement plans. The decree also increases the ceiling for employer contributions to these plans and provides guidelines on investment qualifications and early payment options for profit-sharing bonuses.
Employer-Initiated Medical Examinations
A decree issued on July 5, 2024, allows employers to request a medical examination to verify the legitimacy of an employee’s sick leave. If the examination, conducted either at the doctor’s office or the employee’s home, determines that the sick leave is unjustified, the employer is not obligated to continue salary payments.
The decree also outlines the information that can be shared by the doctor with the employer and mandates that the employee be informed of the examination results.
Mandatory Information for Works Council Elections
As of June 8, 2024, a new decree clarifies the mandatory information that employers must provide to trade unions during the negotiation of pre-electoral agreements for Works Council elections.
This includes details such as the employer’s name and address, the applicable collective bargaining agreement, and the schedule for the first negotiation meeting.
Initiatives Against Discrimination
The French Ministry of Labor has published a guide on June 18, 2024, aimed at educating Works Council members on their responsibilities in preventing and combating racism, antisemitism, and discrimination based on origin. This guide serves as a resource for promoting inclusivity and ensuring that workplaces are free from discriminatory practices.
How Beyond Borders HR Can Help You
These 2024 employment legislation changes for France can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.
