Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New Profit-Sharing Act of November 19, 2023

New Legislation Enacted

Author: Maya Beauville, Associate – Littler France

A new Profit-Sharing Act adopted on November 19, 2023, sets a deadline of January 1, 2025, for companies with at least 11 employees to implement a mandatory profit-sharing program if they have a pre-tax net profit of at least 1% for three consecutive years. This requirement will last for five years as an experiment, although it is to be expected that this new obligation will continue after that. A whopping 48,000 companies will have to comply with this new requirement.

There are a number of options that companies can choose from to comply with the new requirement:

• a voluntary profit-sharing scheme (intéressement or participation),
• a contribution by the company to a company savings plan (PEE) or a pension plan (PER), or
• a value-sharing bonus (PPV).

Additional details are available on Littler.com.

Transcript of Recordings Made Without Employee’s Consent Can Be Admissible Evidence

Precedential Decision by Judiciary or Regulatory Agency

The French Supreme Court (Cour de cassation) recently overturned a ruling excluding the transcript of recordings made by an employer without an employee’s consent in a case involving dismissal of the employee for gross misconduct. The Court ruled that unlawfulness or unfairness in obtaining or producing evidence does not necessarily require its exclusion from court proceedings. Rather, the judge must assess whether the evidence undermines the fairness of the proceedings as a whole, balancing the right to the evidence against the conflicting rights at stake and assessing whether the evidence is indispensable and the infringement on opposing rights is proportionate to the aim pursued.

Employers Must Detail the Economic Reasons for Proposing Contract Modifications

Precedential Decision by Judiciary or Regulatory Agency

In another recent case, the French Supreme Court (Cour de cassation) found that the employer failed to demonstrate the existence of economic difficulties or technological change as the reasons for its proposed modification of an employment contract. Accordingly, the modifications could not be enforced.

Exclusion of Stock Options and RSUs in the Calculation of Severance

Precedential Decision by Judiciary or Regulatory Agency

For several years, there has been uncertainty regarding whether stock options and restricted stock units (RSUs) are to be included in the calculation of termination pay. The French Supreme Court has now definitely put an end to this uncertainty in its November 15, 2023, ruling, holding that neither should be taken into account when calculating severance pay upon termination of an employment contract. Additional details are available on Littler.com.