Employment Newsletter N°31 – February 2016
- Gross hourly minimum wage provided by the law is increased to €9.67, that is €1,466.62 gross per month as from 1 January 2016, representing a +0.6% increase.
- The monthly social security cap (« plafond mensuel de la Sécurité sociale ») for 2016 is €3.218.
- Decree n°2015-1811 dated 18 December 2015 relating to the employees’ information in case of a sale of their company: as from 1 January 2016, the employees’ information created by the Hamon law only applies in the event of a sale of the company (and not anymore to all kinds of company disposals) and the applicable sanction should this obligation be breached is a civil fine the amount of which cannot exceed 2% of the sale.
Ordinance 2015-1625 dated 10 December 2015: as from 1 January 2016, the advance ruling procedure for social security contributions (« rescrit social ») is extended to all claims aiming at knowing the application to a specific situation of legislation relating to social security contributions controlled by social security contributions collection organizations.
This ordinance also set up an advance ruling procedure for assessing the compliance with the law of an agreement or action plan relating to professional equality and disability.
- Decree 2015-1579 dated 3 December 2015: as from 5 December 2015, French Administration can issue a decision of temporary suspension (up to 1 month) for services provisions provided by an employer located out of France seconding employees on national territory, in the event of serious breach relating to minimum wage, weekly rest, weekly and daily maximum work duration, or when work conditions or accommodations incompatible with human dignity are ascertained.
Social security financing act for 2016 n°2015-1702 dated 21 December 2015: as from 1 January 2016, termination indemnities paid to top executives and corporate officers amounting more than 5 PASS (and not anymore 10 PASS) are fully considered to be remunerations for the calculation of social security contributions and CSG, CRDS contributions. Indemnities linked to the termination of the employment contract and forced termination of the corporate office must be added for applying this provision.
However, for the sole indemnities linked to the termination of the employment contract, the threshold of 10 PASS remains applicable for the payment of CSG and CRDS contributions as from the first euro, but this threshold is cancelled regarding social security contributions. Taking into consideration the fact that this last measure contradicts the will of the legislature, this mistake could be corrected in the future under conditions yet to be defined.
ZOOM on case law Cass. Soc. N°14-24.244 dated 25 November 2015
In this decision, an Air France chief purser who had a panic attack in 2006 claimed that his employer failed in his security requirements following the 11 September 2001 attacks which he had witnessed.
The French Supreme Court considered that « the employer justifying that he took all measures provided by articles L.4121-1 and L.4121-2 of the French Labor Code does not breach the legal obligation under which he must take all necessary measures in order to ensure security and protect the employees’ physical and mental health ».
By this decision of principle, the French Supreme Court narrows the scope of the employer’s security obligation, which was previously an obligation to achieve a result. The employer can now avoid liability by demonstrating that he took all necessary measures in order to ensure security and protect the employees’ physical and mental health. It is therefore more than ever necessary and useful to take actions aiming at preventing professional risks, as well as information and training actions notably.
To be followed…
- A reform aiming at « having a simpler labor law code » should be voted before 2016 summer.
Email : firstname.lastname@example.org
Nathalie Guézet (Lyon)
Patrick Bannwarth (Marseille)
Anne Pitault (Bordeaux)