FRANCE Law and Practice Contributed by: Laetitia Tombarello and Audrey Demourgues, Bredin Prat
form and specify the number of hours worked (or days worked per year). 1.3 Working Hours Standard Working Time The standard working time arrangement in France is 35 hours a week. Overtime Any hour worked beyond this threshold is considered overtime, and is usually compensated with a salary increase of 25% (for the first eight overtime hours) or 50% (beyond the eighth hour), unless an applicable collective bargaining agreement provides for lower compensation, with a minimum of 10%. Unless provided otherwise by applicable collective bargaining agreements, an employee cannot do more than 220 overtime hours within the same year. Beyond this limit, any overtime hours must be compensat - ed (in addition to salary) by additional days of paid leave. Since January 2019, overtime is exempted from income tax up to EUR7,500 per year, and subject to a reduced rate of social contributions (ie, an exemption from pension contributions within the limit of 11.31% of salary). Day-Year Scheme (Forfait-Jours) Employees performing their work with a certain degree of autonomy and responsibilities can be subject to a day-year scheme called forfait-jours , under which they must work for a certain number of days per year (no more than 218 days). They receive lump-sum remu - neration that covers all their hours of work, without any distinction between ordinary and overtime hours. This particular scheme is very popular, especially for executives who are thus not subject to the 35-hour week. However, to be valid, this scheme must be pro - vided for in a collective bargaining agreement (wheth - er industry-level or company-level). This agreement should include guarantees ensuring that the employ - ee’s working hours and workload remain reasonable, and should provide safeguards in respect of the pro - tection of employee health and safety. In the absence of such provisions, or if the employer does not comply with them, the day-year scheme
could be deemed invalid, and the rules related to over - time would then apply. This gives rise to significant liti - gation in France, with a three-year limitation period for claims related to compensation. As a consequence, employers are strongly advised to design their day- year schemes carefully. Part-Time Contracts Unless otherwise agreed, part-time employees may not work less than 24 hours or more than 35 hours a week (or a pro-rated number of days for forfait-jours ). A part-time employee may divide their working hours over a week, a month or even a year, as provided in their employment contract. French Language Employment contracts, as well as any amendments or schedules to the contracts, must be written in French to be enforceable against the employees. Bilingual contracts are also permissible, providing that the French version prevails. 1.4 Compensation In France, employees are usually remunerated in cash on a monthly basis, according to the number of hours A statutory minimum wage called the SMIC is fixed every year by the French State by reference to the rate of inflation for the past year, based on the retail price index (including tobacco). If inflation exceeds 2% dur - ing the year, the SMIC is automatically increased. In principle, no employee working full-time can be remu - nerated under the SMIC regime. As of November 2024, this minimum wage was set at EUR1,801.80 (gross) per month and EUR11.88 (gross) per hour. or days worked. Minimum Wage In addition, industry-wide national collective bargain - ing agreements can provide a minimum wage that depends on the employees’ status and classification, provided that it is higher than the SMIC. Additional Compensation Collective bargaining agreements also commonly provide for supplementary compensation (eg, an indi -
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