HOW DOES FLEXICURITY TRANSLATE IN FRENCH?

Overview of the recent changes to improve flexibility and security of

employment

Sybille Idrac RaphaelAncien Avocat au Barreau de Paris

Solicitor of the Supreme Court Human Resources Manager

A dangerous word

• Accord interprofessionnel sur le marché du travail (11/01/08)

• Projet de loi portant modernisation du marché du travail (8/04/08)

A dangerous word

1. The traditional route: a dismissal

2. The damage control strategy: settlement agreement

3. The alternative way: fixed-term contract

1.The traditional route: a

dismissal

1. The traditional route:a dismissal

Currently: slow and sticky

• procedure: long• 5 days, 15 days, 3 months• Collective redundancies: “Plan de

sauvegarde de l’emploi”

• Justification : precise and objective

1. The traditional route: a dismissal

Loopholes:

• Trial period

• CNE (Contrat Nouvelle Embauche)1.1 millions in 2 yearsbut contrary to ILO convention 158?

1. The traditional route: a dismissal

The changes: more secure than flexible

- Suppression of CNE (art. 9)

- Real and serious justification communicated to the employee (art. 4)

1. The traditional route:

a dismissal

- Notice during trial period (art. 2)48 h during 1st month,1 week after 1 month,1 month after 3 months.

- Dismissal indemnity (art. 4)if > 1y seniority, 1/5e month/seniority year

2. Damage-control strategy:

settlement agreement

2. Damage-control strategy: settlement agreement

Currently: highly desirable but delayed and risky

• France ¼ of dismissal for personal motive result in a claim for unfair dismissal

• Unfair dismissal claims: 35.000 UK 140.000

France

2. Damage-control strategy: settlement agreement

• How long? 1 year (1st instance),18 months (appeal)

• How much? Min 6 months if > 2 y seniority2 to 3 years if staff representative

• How many?20.000 in UK, 100.000 in France

2. Damage-control strategy: settlement agreement

Settling:

• Delayed : after reception of the dismissal letter by registered mail and cooling off period of 2 weeks

• Resignation not an option because of taxable regime and loss of unemployment benefits

• Risky : cancellation if insufficient consideration

2. Damage-control strategy: settlement agreement

A new consensual termination (art. 5): quicker, flexier but still secure

• Avoids dismissal procedure and resignation tax regime

• Dismissal and unemployment indemnity

• Cancellation right of 14 days • Homologation by Labour Inspectorate (15 days)

3. The alternative route: fixed-term

contract

3. The alternative route: fixed-term contract

Currently: an escape route tightly controlled

- More expensive

- Termination… at the term

- Permissible only in specific listed cases

3. The alternative route: the fixed-term contracts

The flexisecure improvements

• COD « Contrat de travail dont le terme est déterminé par la réalisation d’un objet défini défini » (art. 6)

• Longer (18 to 36 months)

• Early termination for real and serious cause

Conclusion: flexi, secure or neither?

Sybille Idrac Raphael

Ancien Avocat au Barreau de Paris,Solicitor of the Supreme Court,

Human Resources Manager