Reminder of the penalty for illegal employment

Penalties

On the 2nd of November 2015 the official public services web site republished a note about the penalties for illegal employment. Here is a summary of the note.

What is the illegal employment?

Illegal employment is:

  • The employment of work force without declaration to the authorities.
  • The illegal loan of work force.
  • The illegal addition of employments.
  • The employment of illegal foreigner (without work permit).
  • The false declaration (of unemployment) to received subsides.

Warning! In case of outsourcing agreements, the company subcontracting has the responsibility to insure that the subcontractor company has declared its employees. Otherwise the subcontracting company can be considered an accomplice of the illegal employment.

What are the penalties?

The penalty for illegal employment is of 3 years of imprisonment and a 45 000€ fine for an individual. The fine is increased to 225 000€ if the offender is a company.

The penalty is increase to 5 years of imprisonment and a 75 000€ fine in case of illegal employment of an underage.

The penalty for the illegal loan of work force is of 2 years of imprisonment and a 30 000€ fine for an individual. The fine is increased to 150 000€ if the offender is a company.

The penalty for the employment of illegal foreigners is of 5 years of imprisonment and a fine of 15 000€ per foreigner. If the offender is a company, the imprisonment applies to the CEO and the fine is increase to 75 000€ per foreigner.

Additional penalties.

Some penalties can be added:

  • The offender can be banned of some professional activities.
  • The offender can be excluded of public businesses.
  • The judgement can be published in the newspaper and on the official black list.
  • Forfeiture of civic, civil and family.

Administrative penalties.

Administrative penalties can be added to the penal ones. They are the following:

  • Cancellation of all subsides and public financial helps.
  • Reimbursement of all subsides and public financial helps already received.
  • Administrative closure.

Source
Public services: https://www.service-public.fr/professionnels-entreprises/vosdroits/F31490

Find out more on the hiring process in our database accessible on our site for registered members.

Database Database
FPExpert

 

 

The update of the French labour code is set.

Court judgement

Every one agree that the French labour code is old, complex and unpractical. With this idea in mind, the French government requested a study of the changes to be brought to the code.

This study is the Combrexelle report. The government received it in September 2015.

Based on that report a planning for the update of the labour code has been set. The update of the code should take 2 years and is planned for the 1st semester 2018.

However, part of the code related to the working hours, the rests and the leaves should be updated by a law proposed to the legislator in 2016.

The content of the law is yet unknown. But some example of the modifications has been provided:

  • The employer should have the possibility to increase the working hours in case of an increase in the activity.
  • For specific project the employee should be allow to work more than the maximum legal working hours.

The changes made to the labour code should have the purposes of:

  • Increasing the feasibility of collective agreements.
  • To reduce the number of professional branches (from over 700 to 100).
  • To make the collective bargaining accessible to small companies.

Source
RF Social : http://rfsocial.grouperf.com/depeches/35150.html
FPExpert

Subsidies to improve working conditions.

Subsidies

The FACT (Fonds pour l’amélioration des conditions de travail) can provide subsidies to companies looking to improve the work conditions of their employees.

Only companies of less than 300 employees can benefit from this help. The subsidy is provided by project. The employee’s representative must be informed of the project.

The subsidies cannot exceed 80% of the total cost of the project.


source
RF Social : http://rfsocial.grouperf.com/depeches/35128.html
FPExpert

Retirement contributions increase expected for January 2016.

French Retirement contribution

On the 30th of October 2015, the social partners agreed on the retirement system update.

This agreement includes an increase of the AGFF contribution for the executive officers.

This contribution is of 2,00% of the gross salary up to 1 social security sealing. And of 2,20% of the gross salary from 1 to 4 social security sealing. There is no contribution on the gross salary exceeding 4 social security sealing.

It is expected that on the 1st of January 2016 the gross salary from 4 to 8 social security sealing will also be subject to the AGFF contribution at a rate of 2,20%.

This agreement also includes the merge of the retirement system (ARRCO and AGIRC) as of January 2019.

This agreement is yet to be signed.


 

Source
RF Paye : http://rfpaye.grouperf.com/depeches/35113.html

Reminder
The split of the AGFF contribution is: 40% employee / 60% employer.
The annual social security sealing for 2015 is of 38 040€ (3 170€ per month)

Find out more on the social contributions in our database accessible on our site for registered members.

This content is for registered users only. Please login.
FPExpert

The judge cannot be too generous.

Court judgement

In this specific case, and employee has had successive short term employment contracts.

When the final contract ended, the employee asked the judge to have the contracts reclassified as one undefinite term contract.
The judge agreed. He then condemn the company to the pay the employee:

  • 2 indemnities for dismissal without just cause.
  • 1 notice period indemnity.
The cassation court disagreed with the judge.
The employee could only have claimed:
  • One indemnity for reclassification. Which cannot be inferior to one-month salary.
  • One indemnity for dismissal without cause.

The judge of the court of appeal has been too generous and the judge of the cassation court has cancelled the judgment.


Reminder
Without proper cause successive short term employment contracts can be reclassified as one indefinite term contract.
In case this the company must pay the termination indemnity as if the short term contract has been an indefinite one. And the employee is untitled to an indemnity for dismissal without just cause as the process for termination of an indefinite term contract has not been completed.

Source
RF Paye : http://rfpaye.grouperf.com/depeches/35094.html
FPExpert

Personal account for prevention of arduousness.

arduousness

Since January 2014, every employee has a personal account for prevention of arduousness.

When an employee work under harsh conditions, he acquires point on his personal account for prevention of arduousness.

Those points can be used for:

  • Professional training.
  • Reduction of working time.
  • Early retirement.

This personal account for prevention of arduousness bring the following obligation to the employer:

  • The employer must do a yearly evaluation to the exposure to harsh conditions.
  • The employer must also establish a written register of the collective data related to the exposure of harsh conditions.
  • The employer must have a process to diminish exposure to harsh conditions.
  • Finally, the employer must declare the harsh conditions to which each employee have been exposed.

Sources
Public services news : https://www.service-public.fr/professionnels-entreprises/actualites/007041
FPExpert

The number of interns per company is now limited.

Internship

On the 10th of July 2014 a law regulating internship in France has been voted.

Today the application decree has been published.

As of now the number of interns working at the same time in one company is limited to:

  • 3 if the company has less than 20 employees.
  • 15% of the workforce the company has at least 20 employees.

Also, the decree indicates that one tutor cannot supervise more than 3 interns at the same time.


Reminder
An intern is a student with an internship agreement between himself, his school and the company. The duration of the internship cannot exceed 6 months per academic year.
An employee of the company must be designated as a tutor for the intern.
An intern can receive a gratification. The part of this gratification which exceeding 3.6€ per hour (as of the 1st of September 2015) is subject to social contribution.

No more « sommes isolées » as of the 1st of January 2016.

Termination payroll

The “sommes isolées” are exceptional gross amounts paid to the employee and due to the termination of his employment contract.

The retirement contributions paid on these gross amounts were distinct from the normal retirement contributions.

As of the 1st of January this will no longer be the case.


Exemple of “sommes isolées” :
Indemnity for unpaid vacation | indemnity for unpaid RTT | Termination indemnity subject to social contributions | Definite term contract indemnity | Indemnity for non-concurrence clause …

Reduction by half of the termination indemnity exempted from social contributions

Part of the termination indemnity is exempted from social contributions and CSG/CRDS contributions. However, when a termination indemnity exceeds 10 times the annual social security sealing it is fully subject to social contributions.

This may change in 2016 as the parliament modified the 2016 finance law to have this exemption limit reduced to 5 time the annual social security sealing.


Reminder :
2015 annual social security sealing: 38 040 €
Expected 2016 annual security sealing : 38 616 € (to be confirmed)

FPExpert