In order to improve working conditions for employees and increase the competitiveness of companies, many decrees have been issued and are already in effect since Emmanuel Macron came to power. Not intending to stop on such a good path, he plans to continue his efforts to reform the Labor Code. Below are three main reforms anticipated for 2018.
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Reforms Related to Dismissal
Contrary to the current situation where there are 1 year and 2 years as the time limits for appealing to labor courts, respectively for economic dismissals and other types of dismissal, this period will be reduced to a base of one year for all types of dismissal. Furthermore, for legal dismissal indemnities, it is expected that they will be 3 months for an employee with 2 years of seniority and will gradually reach 20 months for an employee with 30 years of seniority.
In addition to these two provisions, in the 2021 reform calendar, employers are not left out. They will now be able to invoke the “right to make mistakes” in cases of procedural defects in good faith for dismissals in very small enterprises and small and medium-sized enterprises.
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Reforms Related to Negotiations at the Branch or Company Level
According to the reforms made to the Labor Code, many measures will now be left to the discretion of the branch. In practice, according to a branch agreement, it will be possible to work 44 hours per week for three months, and through a company agreement, the weekly working time can be increased to 46 hours over twelve weeks. However, the legal working time (35 hours) remains unchanged.
Additionally, the characteristics of fixed-term contracts (the duration, the number of renewals, the cooling-off period, the terms of recourse, etc.) initially set by law will now be determined by the branch. As for permanent contracts, the creation of a project-based permanent contract is planned. Specifically, in the construction sector, the project-based permanent contract will expand from the existing construction contract. This contract would be concluded solely for the duration of a project, and its terms will be set by the branch.
One of the reforms of the Labor Code concerns the negotiation of bonuses. This negotiation, which currently takes place at the level of collective agreements and branches, will now occur directly at the company level.
Social Progress Expected for Employees in 2018
With the reforms of the labor law, additional rights are granted to employees and job seekers. Indeed, during their rest periods and vacations, employees will benefit from the right to disconnect. Furthermore, it is expected that the legal duration of leave will increase from 2 years to 5 years for the death of a child. As for the leave granted for the death of another close family member such as a brother or sister, a parent, or a step-parent, it will increase from one day to 2 days. Additionally, the reforms include better protection for seasonal contracts. The renewal of these contracts can therefore be negotiated with the possibility of obtaining a seniority bonus.