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Labour law reform in France

The project of the labour law reform defended by the French government is partially inspired by implemented measures in several countries of Europe, Italy, Spain and Germany.

It allows intern company agreements negotiated between employers, employees and labour unions to replace national branch agreements. This should bring more flexibility in the functioning of the SMEs especially in the management of working hours, extra hours and the vacation. The government was inspired by Germany where this kind of measures allowed to increase the competitiveness and to save numerous jobs in the industry. This reform also redefines the dismissal for economic motive which can be justified now by a turnover decrease or even a degradation of the booked orders. This Labour Law softens this possibility of redundancy.

This new law also aims at the improvement of the working conditions with a better protection, in particular seasonal workers and implementation of a personal account of activity (CPA) to manage the training and the hardness of each.

It seems that, after months of debates, tensions and demonstrations, this law makes the unanimity in no camp, except that the European Union which widely supported this reform was followed in its last recommendations to be known; “maintain the reductions of the labour cost resulting from the CICE*”, “Limit the rigidity of the lab or market” …

Besides, in the eyes of some, the Euro appears as overvalued with regard to the French economic situation. It harms in the competitiveness, makes the companies losing market shares and destroys jobs. The labour law El Khomri appears as one of the solutions trying to get back of the competitiveness for lack of being able to depreciate the currency.

*CICE Crédit Impôt Compétitivité Emploi which is a tax reduction implemented few years ago in order to push back resources towards enterprises employing people under certain conditions.

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