Discover (or Rediscover) French Employment Law: Your Questions, Our Answers

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1 D Discover (or Rediscover) French Employment Law: Your Questions, Our Answers

2 About Us Dechert is a global specialist law firm. Focused on sectors with the greatest complexities, legal intricacies and highest regulatory demands, we excel in delivering practical commercial judgment and deep legal expertise for high-stakes matters. In an increasingly challenging environment, clients look to us to serve them in ways that are faster, sharper and leaner without compromising excellence. We are relentless in serving our clients delivering the best of the firm to them with entrepreneurial energy and seamless collaboration in a way that is distinctively Dechert. Dechert s labor and employment team has the ability to provide rapid, integrated solutions to any employment, benefits or labor matter. We work closely with companies of all sizes in virtually every industry to assure that their interests are protected. Our lawyers navigate clients through the ever-changing landscape of federal, state and local laws and regulations governing the workplace, assisting them with structuring and implementing effective workplace policies and procedures, preserving their intellectual property, addressing the full range of labor and employment law issues, and guiding them through the challenges of litigation. In France, our employment law practice accompanies French and international clients in an environment that is undoubtedly in constant evolution. We provide guidance to companies across sectors as diverse as IT, telecom, life sciences and automotive. Our lawyers provide advice, services and training to help businesses prevent employment disputes. However, when such disputes arise or are part of the strategy, we handle all types of litigation related to employment and social security issues in both individual and collective cases. At all stages of the litigation, we provide appropriate analysis of the case, to ensure that priority is given to amicable resolution of the conflict, if need be.

3 Editorial Philippe Thomas, Head of Labor and Employment in France Clementine Saunier Senior Associate, Labor and Employment France Is French employment law an aggregation of rules enacted over time? Yes. Is French employment law protective of employees? Yes. Is French employment law complex? Yes, indeed. But to all these questions, we would like to stress that the situation in France is not dissimilar to that of other countries. The legal rules change and are complex because our world continues to evolve. International groups are accustomed to facing different cultures, different legal systems and ultimately different court systems. They are therefore well equipped to apply French law. What matters is to avoid surprises and be ready to adjust to specific legal requirements. This is only possible with a proper understanding of what the legal system is and how it may change. French law should be simple to approach thanks to a codification of the rules. But the French labor code is a compilation of numerous rules that are not always harmonized, and the industry-wide collective bargaining agreements as well as the case law provide additional layers of rules. This guide, put together by Dechert s dedicated Labor and Employment lawyers in France, aims to explain in a pedagogical way the main rules an employer needs to know to manage staff effectively in France. We hope that you will enjoy this learning experience!

4 Table of Contents 1 Terms and Conditions of Employment Employee Representation and Industrial Relations Discrimination Maternity and Family Leave Rights Business Sales Termination of Employment Protecting Business Interests Following Termination Court Practice and Procedure - 22 D

5 Title Terms and Conditions of Employment

6 Dechert LLP Terms and Conditions of Employment 1 What are the main sources of employment law? The main sources that govern the employment relationship, in order of importance, are: EC law; the French Constitution; the French Labor Code; case law; collective bargaining agreements; company collective agreements; internal rules and regulations; company practices and the employment contract. 2 What types of workers are protected by employment law? How are different types of workers distinguished? There are two main types of workers under French employment law: employees and the self-employed. Employees have greater protection as they benefit from the provisions regarding termination as detailed in section 6 and could be entitled to benefit from unemployment allowances if they are dismissed. Individuals are employees if they perform duties for a company under a subordinating link and receive remuneration in return for their work. The self-employed are less protected by French law. An individual is self-employed if he chooses to work for himself without being answerable to an employer. 3 Do contracts of employment have to be in writing? If not, do employees have to be provided with specific information in writing? While it is generally advised to have all contracts in writing, it is not a legal requirement to have written employment contracts, except when an applicable collective bargaining agreement requires it or when the contract is for a fixed-term, part-time or an apprenticeship. It should be noted that oral fixed-term contracts are categorically deemed to be indefinite-term contracts, and oral part-time contracts are considered to be fulltime contracts. Moreover, in the absence of a written contract, in accordance with EU law, an employer should provide every employee with a written statement of the main terms that determine the employment relationship. The main terms are: names of the parties; place of work; position; starting date; length of paid holidays; name of applicable collective bargaining agreement; salary; and working time. 4 Are any terms implied into contracts of employment? Employers and employees are expected to behave in a correct manner towards one another, and mutual trust should be maintained and respected. Employees should respect their duties of loyalty, should not disclose confidential information to people outside of the workplace and are expected to carry out reasonable tasks when asked to do so, while employers engage to pay wages and to provide a safe working environment. 5 Are any minimum employment terms and conditions set down by law that employers have to observe? Minimum wage All employees who are employed under an employment contract, either indefinite or fixed term, are entitled to receive a minimum gross monthly wage (in 2014: 1, gross for a 35-hour work week). Depending on the job category, collective bargaining agreements also frequently determine the minimum monthly wage. Do not hesitate to contact us to request the full version of our guide Discover (or Rediscover) French Employment Law philippe.thomas@dechert.com or parmarketing@dechert.com Telephone:

7 Labor and Employment Contacts BELGIUM Karla Vuyts Associate karla.vuyts@dechert.com CHINA HONG KONG Angelyn Lim angelyn.lim@dechert.com Annie Lau Associate annie.lau@dechert.com CHINA PRC Jingzhou Tao jingzhou.tao@dechert.com FRANCE Philippe Thomas philippe.thomas@dechert.com GERMANY Dr. Olaf Fasshauer National olaf.fasshauer@dechert.com Giovanni Russo National giovanni.russo@dechert.com IRELAND Declan O Sullivan declan.osullivan@dechert.com KAZAKHSTAN Sergei Vataev National sergei.vataev@dechert.com LUXEMBOURG Marc Seimetz marc.seimetz@dechert.com RUSSIA Evgenia Korotkova National evgenia.korotkova@dechert.com UNITED ARAB EMIRATES Samer Y. Amro National samer.amro@dechert.com UNITED KINGDOM Charles Wynn-Evans charles.wynn-evans@dechert.com Jason Butwick jason.butwick@dechert.com Georgina Rowley Associate georgina.rowley@dechert.com UNITED STATES Alan D. Berkowitz, Philadelphia alan.berkowitz@dechert.com Nicolle L. Jacoby, New York nicolle.jacoby@dechert.com Thomas K. Johnson, II, Philadelphia thomas.johnson@dechert.com Andrew S. Wong, Los Angeles andrew.wong@dechert.com

8 Philippe Thomas, Head of Labor and Employment in France Clementine Saunier, Senior Associate Labor and Employment in France 2014 Dechert LLP. All rights reserved. This publication should not be considered as legal opinions on specific facts or as a substitute for legal counsel. It is provided by Dechert LLP as a general informational service and may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. This publication uses actors to portray fictionalized events and scenes. We can be reached at the following postal addresses: in the US: 1095 Avenue of the Americas, New York, NY ( ); in Hong Kong: 27/F Henley Building, 5 Queen s Road Central, Hong Kong ( ); and in the UK: 160 Queen Victoria Street, London EC4V 4QQ ( ). Dechert internationally is a combination of separate limited liability partnerships and other entities registered in different jurisdictions. Dechert has more than 900 qualified lawyers and 700 staff members in its offices in Belgium, China, France, Germany, Georgia, Hong Kong, Ireland, Kazakhstan, Luxembourg, Russia, the United Arab Emirates, the UK and the US. Further details of these partnerships and entities can be found at dechert.com on our Legal Notices page D

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