FRANCE Law and Practice Contributed by: Véronique Millischer, Léna Sersiron, Eléonore d’Anthonay, Guillaume Nataf, Olivia Chriqui-Guiot, Pauline Celeyron, Damien Berruyer and Nella Picou, Baker McKenzie Paris
• Companies with 11 to 49 employees : The CSE pri - marily presents individual and collective employee claims relating to the application of labour law, CBAs and company policies, and promotes health, safety and good working conditions. • Companies with 50 or more employees : The CSE has broader information and consultation rights. The employer must inform and consult the CSE before implementing decisions affecting the organi - sation, management or general operation of the company, including, for example: (a) collective redundancies and restructuring projects; (b) significant organisational or technological changes; (c) changes affecting working conditions or work - ing time; (d) introduction of monitoring or surveillance sys - tems; (e) implementation of technologies affecting em - ployees; and (f) economic and financial matters, strategic busi - ness orientations and social policy. The consultation must take place before the employ - er’s final decision is implemented, allowing the CSE to issue a reasoned opinion (generally within one month). While the CSE’s opinion is generally advisory and does not bind the employer, failure to comply with the information and consultation obligations may result in civil and criminal sanctions, suspension of the project by the courts in certain circumstances, and claims for damages. For certain significant projects, the CSE may appoint independent experts (at the employer’s expense in many cases) to assist it in the consultation process, particularly in relation to economic matters, health and safety, or major organisational changes. In addition, trade unions may appoint union repre - sentatives in companies meeting the statutory con - ditions (generally at least 50 employees and where a representative trade union is established). Union representatives negotiate CBAs with the employer on matters such as remuneration, working time and working conditions.
Finally, employees benefiting from representative mandates (such as CSE members and trade union representatives) enjoy special protection against dis - missal. Their dismissal requires prior authorisation from the labour inspectorate.
5. Tax Law 5.1 Taxes Applicable to Employees/ Employers Tax Residency of Employees
From a French domestic legislation standpoint, an individual is considered to have their tax residence in France if one of the following criteria set out in Article 4B of the French Tax Code ( Code général des impôts ) is met: • The individual has their household in France, or otherwise, this corresponds to the location of their main abode. Note : An individual is considered to have their household in France if they live there on a permanent basis, with their spouse (or civil partner and/or children) or alone. If no household can be identified, the location of the main abode is determined based on the individual’s actual pres - ence in France, irrespective of the accommodation conditions. • The individual carries on a professional activity in France, whether as an employee or otherwise, unless such activity is of a secondary nature. Note : A professional activity is considered primary where it accounts for the majority of the individual’s effec - tive working time. • The centre of the individual’s economic interests is located in France. Note : An individual who derives a greater proportion of their income from French sources than from foreign sources is deemed to have the centre of their economic interests in France. Individuals meeting at least one of the above crite - ria are, in principle, regarded as French tax residents under domestic law, unless they qualify as residents of another jurisdiction under an applicable double tax treaty.
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