Labour reform: the main points of the project El Khomri – Europe1

Increase in overtime, capping prud’homales allowances referendums in business, redundancy: Here are the main points of the bill of the Minister of Labour Myriam El Khomri. It will be presented on March 9 in the Council of Ministers.

• Refoundation labor law. Article 1 creates a preamble to the labor code, consisting of “essential principles” which will serve as a basis for the Commission’s overhaul of the labor code.

• SMIC, CDI, 35 hours Three “fundamentals” are written in the text. “a minimum wage is set by law”; “The employment contract is open-ended”; “The legal term of actual work of full-time employees is thirty-five hours a week” and “any time accomplished beyond (…) is an extra hour” which qualifies for compensation. However, under the law, “the rule of the company agreement on working time becomes the common law principle.”

• overtime. the minimum increase of 10% for the overtime pay is maintained. Thus, companies will now fall below the threshold of 25% increase so far defended by professional sectors. Failing agreement, the increase is 25% for the additional first eight hours, and 50% for the following.

• Dismissal . economic more specific criteria define the economic reason of dismissal: the economic difficulties are characterized “by either a drop in orders or sales for several consecutive quarters compared with the same period of previous year, with operating losses for several months, or by a significant deterioration in cash or by any evidence to prove these difficulties. ”

• Capping prud’homales benefits. It is applicable in case of dismissal without just cause. The minimum allowance for six months now applicable to employees over two years’ is deleted. For an employee whose seniority is less than two years, compensation shall be three months salary; between two and less than five years, six months salary for nine months for a seniority between 5 and 10 years. The maximum is 15 months for a tenure of over 20 years.

• Referendum. The collective agreements will be the majority. But to avoid deadlock situations, unions representing at least 30% “of employees may request an employee consultation. And an agreement will be” valid if approved by the employees to the majority of votes cast “. Currently for an agreement to be valid it must collect either having obtained the signature of unions at least 50% of the vote professional.

• personal business account. Aiming to “protect assets” and presented by François Hollande as the great social reform five years, it is open to anyone aged at least 16 years old, employed or looking for a job. It consists “of training personnel account (CPF) and the account of the hardship prevention staff.”

• package-date. the “secures” the day-package and allows its use in small and micro businesses. the day pass is a derogation to 35 hours which allows to remunerate employees based on the number of working days per year, not weekly schedules.