Actance Tribune

What's NEW under French Employment Law?

N° 23 – January 15, 2024

Reinforcing the fight against discrimination in France: an overview of the proposed law adopted on December 6, 2023

On December 6, 2023, the French Parliament adopted a bill aimed at intensifying the fight against discrimination via the use of individual and statistical tests. 

This text plans to systematise the use of individual and statistical tests to reveal whether or not companies and public employers have discriminatory practices.

  • Creation of a Government service

The text proposes the creation of a service whose mission will be to help people to complete individual tests to check if they are victims of discrimination. Within this service, a special committee would be responsible for carrying out statistical tests on companies, according to a work program defined by the Government. The names of companies whose discriminatory behaviour has been confirmed could be published. 

  • Procedure in case of alleged discriminatory practices

When the result of a test suggests that there are discriminatory practices, the service in charge of these tests must inform the employer concerned as well as the local competent administrative authority and send them the results of the test.

In this case, the company must begin “negotiations on measures aimed at preventing or correcting discrimination, in order to conclude an agreement within six months of the transmission of the test results ”. Failing an agreement, the employer must establish, within the same time frame, a plan of action with the same goal, following consultation with the social and economic committee.

Failure to comply with these measures would result in an administrative fine. To date, the administrative fine is up to 1% of remuneration and earnings subject to contributions paid during the calendar year preceding the expiration of the 6-month time period granted the employer to conclude an agreement or to implement an action plan.

The adoption of this proposal is part of the government’s anti-discrimination policy.

Note that discrimination of any sort is prohibited in France. This means unequal or unfavourable treatment of a person due to personal characteristics, such as: origin, sex, morals, sexual orientation, age, family situation or pregnancy, vulnerable economic situation, political opinions, trade union or mutualist activities, religious beliefs, physical appearance, last name, health, etc.

It can be direct (a person is treated less favourably than another person due to criteria prohibited by law) or indirect (a seemingly neutral measure leads to the same result as direct discrimination).

In France, discrimination is prohibited both by the French Penal Code which provides for sanctions of up to 5 years of imprisonment and a fine of €75,000, as well as by the French Labour Code which provides for a sanction of one year imprisonment and a fine of €3,750 when the discrimination takes place in a professional context.

Precaution to note:

We recommend that our clients take preventive measures to ensure equal treatment among employees and to train staff, particularly those managing human resources and recruitment, about the risks linked to discrimination.

The appointment of a discrimination adviser or the establishment of an internal reporting procedure which would allow the employer to react quickly and appropriately should any risky situations arise could also constitute preventive solutions. 

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Employee avenues of appeal: aiming to reduce the time limit for disputing dismissal

On December 2, 2023, the French Minister of Economy and Finance announced his desire to reduce the appeal period granted to employees to dispute their dismissal.

Currently 12 months, this period could be shortened to two months.

In France, an employee who is dismissed has one year to dispute the justification of their dismissal. After this time, any action is inadmissible.

According to the Minister, this 12-month period is too long. Reducing this period to 2 months would align French legislation with that of other industrialised countries.

Indeed, the deadline for disputing the justification of a dismissal is:

  • 3 weeks in Germany;
  • 20 working days in Spain;
  • 2 months in the Netherlands;
  • 3 months in the UK.

This proposal is part of a simplification policy for businesses. The Minister specified that companies are currently faced with a procedural workload which prevents them from focusing on growth and development.

This reform could be proposed as part of the Pacte II law, to be presented in the first months of 2024.

Let us remember that the limitation period for disputing a real and serious cause of dismissal has been drastically reduced over the last more than 20 years, successively from 30 years to 5 years, then to 2 years and finally to 1 year in 2017.

In addition to dismissal, in France, an employee has one-year to dispute the termination of their employment contract.

They also benefit from a period of 2 years to dispute the execution of their employment contract and a period of 3 years to request back pay.

Note

This measure has not yet been adopted. This is simply an announcement. The scope of this reform has yet to be determined, if it is upheld.

The time limit for disputing a dismissal remains at 1 year.

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