FRANCE LAW AND PRACTICE Contributed by: Michael Doumet, François-Xavier Naime, Guillaume Nataf, Léna Sersiron, Eléonore d’Anthonay, Nella Picou, Pauline Celeyron and Magalie Dansac Le Clerc, Baker McKenzie Paris
Overtime hours may be worked in addition to the legal working time, but only within two limits: • the total working time in a single week must not exceed 48 hours; and • the average weekly working time calculated over any 12 consecutive weeks must not exceed 44 hours. In principle, every employee is entitled to a minimum daily rest period of 11 consecutive hours. Employees are entitled to at least five weeks of paid leave and a minimum statutory salary. However, there are numerous exceptions to this working time dura - tion. Health and safety obligations Employers have a duty to protect employees’ physi - cal and mental health. They must assess and control risks, maintain safe premises and equipment, pro - vide appropriate information and training, implement emergency measures and health surveillance where required, and comply with statutory occupational health standards. Dismissal (or, more generally, terminations) Dismissals are based on real and serious personal or economic grounds and must be implemented in com - pliance with specific procedural requirements. Weak dismissal grounds or procedural missteps can lead to employee claims for damages and/or reinstatement. Resignation or amicable termination agreements are alternative means of ending an employment relation - ship. Collective Bargaining, Works Councils and Labour Unions Collective bargaining agreements are prevalent and often establish industry-specific minimum standards for wages and benefits. These agreements are bind - ing and automatically apply to most employers within a sector. Mandatory for companies with 11 or more employ - ees during 12 consecutive months, the works councils with extended prerogatives in large companies must
be consulted on major decisions, including restructur - ing and redundancies. Trade unions are influential, often leading sector-wide or company-wide negotiations and protests. Key Considerations for Foreign Investors Employers face high social costs, including payroll taxes for healthcare, pensions and unemployment insurance, which can amount to nearly 50% of gross salaries. Furthermore, French dismissal regulations/ costs and required consultations with the works coun - cils can add complexity to workforce restructuring efforts. 10.2 Employee Compensation Employee Compensation Frameworks in France Employee compensation in France includes base salaries, variable remuneration, statutory or optional benefits, optional pension plans, and optional equi - ty-based incentives. The principle of “ à travail égal, salaire égal ” (equal pay for equal work) ensures fair compensation for employees performing similar roles under similar conditions. Base salary Salaries must meet the statutory minimum salary or higher thresholds set by the applicable collective agreements. Bonuses and equity compensation Employees may receive performance bonuses or participate in equity-based plans (eg, stock options or restricted stock units), which may offer tax advan - tages if statutory requirements are met. Pension and benefits Employers contribute to France’s statutory pension system and may offer supplementary pension plans. Health insurance ( complémentaire santé ) and provi - dent ( prévoyance ) scheme coverage are mandatory. Compensation in Corporate Transactions In cases of automatic transfer, employment contracts and related benefits automatically transfer to the new employer.
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