Thursday, August 31, 2017
The French government just announced a proposed set of changes to its Labor Code. The proposal touches on several areas, such as:
- Allows small employers to bargain directly with employees;
- Creates bigger bargaining units at a workplace;
- Increases severance pay;
- Lowers cap on wrongful dismissal awards;
- Lowers statute of limitations on wrongful dismissal claims; and
- Prevents labor courts that consider a company's financial health as part of a wrongful dismissal claim from considering operations outside of France.
I would expect some pretty significant protests over these changes. But Macron seems intent on pushing forward, so things should be interesting.
In the meantime, this seems like an appropriate time for a plug: Sam Estreicher and I have an article in which we evaluate the unjust dismissal laws of France and several other countries, including the U.S. In the article, we provide among other things the relevant rules for dismissal and give estimates for average awards, win rates, and time to litigate. This may be of interest to those who want to compare the new proposal with what's occurring now.