France
Reducing the threshold for exemption from social security contributions for apprentices
Impact date: 1 March 2025 Décret no. 2025-290 amends the exemptions from employee contributions for apprenticeship contracts signed as of 1 March 2025. The cap for the exempted portion of remuneration is now set at 50% of the minimum wage, or €901, instead of 79% as previously.
Employer implications/action needed The updated rules should be taken into account when entering into apprenticeship contracts.
Compensation for failures to monitor the workload of employees (case law)
Impact date: 11 March 2025 The French Supreme Court has ruled out an established right to compensation where an employer has failed to fulfil its obligations with regard to the assessment and effective monitoring of employee workload under working-time-in-days arrangements.
In the first case, the breach was related to the employer’s failure to comply with the clauses of the collective agreement establishing the working-time-in-days arrangement or the applicable legal provisions in this area.
In the second case, the employer’s breach was related to insufficient guarantees provided by the contractual provisions allowing for the use of the working-time-in-days arrangement.
Employees can only be awarded additional compensation if they can demonstrate the existence of ‘distinct harm’ from that which the granting of overtime compensation is intended to repair. (Cass. soc., March 11, 2025, no. 21-23.557; Cass. soc., March 11, 2025, no. 23-19.669).
On the same day, the French Supreme Court also handed down rulings in cases of failure to provide enhanced medical monitoring for night workers and failure by the employer to fulfil the obligation to ensure that paid leave days are actually taken. (Cass. soc., March 11, 2025, no. 23-16.415; Cass. soc., March 11, 2025, no. 24-10.452).
Employer implications/action needed Although the Supreme Court has ruled out an established right to compensation for the failure to fulfil assessment and monitoring of workload obligations for working-time-in-days arrangements, employers should nonetheless ensure that they adhere to legal obligations in this respect.
Employer risk Disputes can arise in the event of failure to fulfil assessment and monitoring of workload obligations for working-time-in-days arrangements.
Guide on senior citizens’ employment
Impact date: The Guide was published on 18 March 2025 A Guide has been published by Medef, summarizing the key measures of the National Cross-Industry Agreement (ANI) of 14 November 2024 in favor of senior citizens’ employment. The Guide provides recommendations and best practices to help companies apply the provisions of ANI.
Employer implications/action needed N/A
Employer risk N/A
A law incorporating European Union law approved
Impact date: 2 May 2025 A Law containing various provisions adapting European Union law (known as the ‘DDADUE’ law) has been approved.
The measures relating to employment law are as follows:
- Unification of the legal regime for class actions, including:
- Extension of the scope of class action in employment matters to include discrimination, the protection of personal data and the cessation of an employer’s breach of its legal or contractual obligations, or compensation for damage caused by such breach
- Maintenance of the right of representative trade unions to take legal action
- Changes in the conditions under which class action may be brought by associations
- An obligation to ask the employer to remedy the breach before bringing a class action. The employer must then inform the works council and the representative trade unions within one month. Class actions may then be brought after the employer has rejected the request or at the end of a period of six months following that request
- Revision of the EU Blue Card framework to make it more attractive to highly skilled foreign workers (shorter minimum period of employment, more flexible intra-Community mobility conditions, etc.)
- A two-year postponement for the application of the CSRD Directive (Directive (EU) No. 2022/2464 of December 14, 2022, Corporate Sustainability Reporting Directive) implementing corporate sustainability reporting requirements. These rules have already been in force since 1 January 2025 for the largest companies (including listed companies and credit and insurance institutions with more than 500 employees)
Employer implications/action needed N/A
Employer risk N/A
Immigration law
Impact date: To 31 December 2026 A discretionary power has been given to the préfets until 31 December 2026 to regularize illegal workers working in jobs and geographical areas where there is a recruitment shortage. In practice, this involves granting a one year’s residence permit, applicable if the individual has:
- Worked as a salaried employee in a job included in the list of jobs and geographical areas that have experienced recruitment difficulties for at least 12 consecutive or non-consecutive months over the last 24 months
- Held a job in one of these jobs or areas
- Proven uninterrupted residence in France for at least three years and
- A clean criminal record (“bulletin n°2”) with no convictions, inabilities or disqualifications
There is discretion to refuse regularization even if the above conditions are met. Préfets will have to take into account the social and family integration of the illegal workers, whether they comply with public order, whether they are integrated into French society and whether they embrace the way of life and values of French society and the principles of the Republic.
Other changes include training for foreign non-French speaking employees, and social security benefits for foreign nationals who are not EU nationals.
Employer implications/action needed Employers should note the changes and review their policies and procedures for the employment of foreign workers to ensure compliance.
Employer risk Employers that fail to comply with the new requirements risk the payment of damages. Employers should remain alert to the prohibition on hiring or employing a foreign worker without authorization (such offence being punished by criminal penalties and administrative sanctions).
Upcoming measure on birth leave
Impact date: Awaited (entry into force expected in 2026) The French Government has announced the creation of birth leave to replace the current parental leave.
The details are yet to be finalized but are expected to include:
- The replacement of parental leave by a six months’ birth leave for both parents
- The leave can be taken by one or both parents, at the same time or successively, full-time or part-time
- The leave will be compensated by social security at 50% of the last salary, up to a limit of €1,800 that could be supplemented by the employer
Employer implications/action needed Employers should continue to monitor the progress of this proposal.
Employer risk N/A
Link N/A
Contact
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.