The Most Important Reforms In Macron's New Labor Laws

Since his campaign, Emmanuel Macron has promised drastic changes to labor regulations. On Thursday, French authorities revealed their plan to put these reforms into action.

The ultimate goal of these revisions is to generate jobs. According to Labor Minister Muriel Penicaud, this legislation, which constitutes the first large-scale policy change of Macron's presidency, intends to help smaller businesses.

Some of the most important changes include:

1. Regulated labor payouts

"Prudhommes", the courts that host wrongful firing lawsuits and distribute awards to former employees, face major changes. The new legislation will limit these employee payouts: three months' pay for employees of up to two years to at the most 20 months' pay for employees of over 30 years. Fired employees also have only a year to put together their suit.

2. Less powerful national legislation

National legislation won't hold sway over select concerns, such as how long fixed contracts may last and the number of times they could be extended. These specific issues will be handled regionally. Meanwhile, rules within companies will decide subjects like employee bonuses.

3. Increased options for small companies

Negotiations about issues like salary and hours will take place between business owners and a representative from the workers if the company has no union agent. Businesses with fewer than 20 employees can now decide issues by referendum.

While viewed as strict by some, these changes still don't meet the demands of employer's organizations, who asked that businesses with as many as 300 workers be able to make direct negotiations. This reform will impact over 80% of French companies.

The French movement Attac has criticized the new legislation, arguing that this will permit "employers to negotiate downsizing in the way that best suits them".

4. Simplified Layoff Process

Both local and multinational companies will run into fewer challenges when presenting voluntary or other redundancies. In response, the French government will raise yearly layoff payments from one-fifth of a month's pay to one-quarter.

5. Easier employee representation

Currently, three committees speak for worker issues within a company-- this will streamline them into one shared voice.

Proponents of the reform legislation will bring it before the French council of ministers on September 22nd. The council will submit a draft to parliament, which will then decide if it will be made into law.

Share Share