French employment law update – foreign companies: few traps you should be aware of
On September 21, 2016 By Benoît LAFOURCADE
For most foreign investors, operations in France are often a source of insecurity when it comes to social matters like « Prud’hommes » litigation or URSSAF reassessments. But other areas with significant financial implications are less known to employers.
Recent Continental layoff cases, put forward this financial risk on various criteria.
The Annual Day Package Agreement (“ forfait-jours”)
With this Annual Day Package Agreement, employees work a certain amount of days during the year (approx. 218 depending on the applicable collective bargaining agreement).
The main advantage for the employers is that their employees are not subject to certain employment regulations like the 35 working hours per week or the 10 hours maximum length per day.
This Package can be used under two conditions:
it must be expressly authorized by a collective bargaining agreement.
it must be clearly mentioned in the employment contract signed with the employee.
However, this system has recently been the subject of a legal turmoil as several courts’ decisions have held that this package was illegal in three kind of industries (chemistry, wholesale and services).
As a consequence, employees who, in principle, were contractually exempt from any overtime compensation, became entitled to claim such compensation.
The translation of work documents
French Employment Code requires that work documents that impose obligations to employees are written in French. In particular, Article L.1221-3 of the French Code requires that all the employment contracts must be translated into French.
Failure to provide an employee with French version of this documents can lead to the employer’s liability. The penalty is a 4th class offense (fine of 750 euros) but in a case decided in 2006, GE Medical Systems was ordered to pay a penalty of 580,000 euros for refusing to translate several work documents at the request of its work council.
Our latest news
DELCADE ranked in the 2024 edition of the Chambers & Partners Europe guide
The entire DELCADE team is proud to be ranked in the prestigious international legal guide Chambers & Partners 2023 in the category France – The Regions as one of France’s leading law firms. This distinction confirms the excellence of our lawyers’ know-how in all areas of business law and their ongoing commitment to their clients. […]
ReadWebinar | EU AI Act Impact: Your Business Game Plan now – Isabelle Gavanon speaker on April 10th
On April 10, 2024, at 6:00 PM Paris time, Isabelle Gavanon, partner at DELCADE, will participate as a speaker to the webinar organized by Consulegis, an international network of independent law firms and accountants of which DELCADE is a member. This webinar will address the real impact of the European Union’s AI Act on businesses […]
ReadDELCADE announces the appointment of Julie Piquet and Guilhem Argueyrolles as partners
DELCADE is delighted to welcome Julie Piquet and Guilhem Argueyrolles as partners. The arrival of these two lawyers, each with their complementary skills, allows for the creation of a new department specialized in the field of insurance law.
Read