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New French Employment Legislation One Year Later
On June 14, 2013, France enacted the so-called “Employment Securization Law.” Promised to be a “small revolution” by the then Minister of Labor (now Minister of Finance) Michel Sapin (of the Socialist Party), it affects almost all aspects of the employer-employee relationship, including recruiting, benefits, training, employee representatives, and termination. It is therefore of the highest importance to all corporations having operations in France. However, the most significant changes the law enacted affect companies with at least 50 employees in France. This, of course, includes the operations in France of companies whose headquarters are located in other countries, such as the United States.
The text of the law is a relatively faithful transcription by the legislature of an agreement reached after months of intense negotiations between unions and employer federations at the national level. Only two (the CGT and FO) out of five unions refused to sign, leading moderate policymakers, employers and unions to be cautious optimistic that the law would bring more balanced, consensual and therefore more efficient ways of addressing, among other things, restructurings and headcount reductions in France. Now, just about one year after the law came into force, employers, professionals and policymakers alike are asking: Did the new law keep its promises?
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