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Employment
By Bredin PratRecent trends and developments in French Employment law
The year 2022, which saw the reelection of President Emmanuel Macron, has brought with it some changes to the French employment and HR landscape. The Macron damages scale for unfair termination was upheld by the French Supreme Court, French digital platform workers voted for employee representatives for the first time, and new legislation was implemented in order to enhance whistleblower protection.
1. The Macron scale upheld by the French Supreme Court
The French Supreme Court (“Cour de cassation”) rendered two significant decisions on May 11, 2022 that upheld the validity of the compensation scale for unfair dismissal, commonly known as the "Macron scale."
The Macron scale was established in 2017 to set up minimum and maximum levels of damages for unfair dismissal based on the employee’s seniority and remuneration and the company’s headcount.
The French Constitutional Court held in 2018 that the Macron scale complied with the French Constitution.
However, its validity has since been challenged by various Employment Courts and Courts of Appeals on the grounds that it fails to comply with international law (in particular the International Labour Organisation (ILO) Convention) and European law, which imply that the employee be compensated for the total harm suffered and/or that the judge can order the payment of "adequate" compensation to the employee in case of unfair dismissal, on a case-by-case basis.
In the May 2022 decision, the Supreme Court ruled that the ILO Convention was directly applicable to domestic law but considered that the Macron scale was compatible with these texts for the following main reasons:
- The compensation provided under the scale was adequate since it was sufficiently dissuasive to avoid an unfair dismissal taking notably into account other amounts that the employer could be ordered to pay in case of unfair dismissal.
- The employer's fault was taken into account, since the application of the scale is set aside when the dismissal is ruled null and void for one of the reasons defined by the law, namely: violation of a fundamental freedom, moral or sexual harassment, discrimination, etc.
- The European Committee of Social Rights held in a March 23, 2022 decision (that was made public in October 2022) that the Macron scale runs afoul of the European Social Charter as the caps are insufficient, they do not serve as a deterrent and the courts have a limited scope of appreciation. However, this decision has no effect on French law as was recently made clear by the French Supreme Court.
- Certain Employment Courts and Courts of Appeals are still trying to avoid applying the Macron scale, such as the Court of Appeals of Douai in a recent decision dated October 21, 2022.
- management powers (as evidenced by the mandatory use of the company’s branded outfit, the rating of the driver's skills according to a precise grid provided by the company, a schedule and a geographic area of activity determined by the company, etc.);
- oversight and supervision powers (as illustrated by the use of geolocation data and the absence of negotiations regarding applicable rates);
- disciplinary powers (as highlighted by the degree of measures to be taken in the event absenteeism (reminder of the rules, decreased rates, demotion in shifts, termination of the contract)).
- The terms of the representation of the professional digital platform organizations (drivers and two-wheel delivery workers) were defined.
- Collective agreements can now be concluded in each sector by representatives of workers' trade unions and representatives of platform organizations. A collective agreement will be considered valid if it is signed by workers' organizations representing more than 30% of the votes cast. Valid agreements may be made binding for all platforms and self-employed workers in the sector concerned by means of an approval from the ARPE.
- It sets out new obligations for platforms, such as the obligation to disclose the location of the services offered and give workers a reasonable timeframe to decide whether or not to accept them. It also reinforces the independence of workers by prohibiting platforms from imposing the use of specific equipment, subject to regulations concerning health, safety and the environment, and guaranteeing them the right to freely choose their itinerary. The exercise of these rights may not be sanctioned by any measure, such as occasional disconnections or the suspension or termination of the VTC driver's or delivery person's commercial contract with the platform.
- report externally (with or without a prior internal report) to specific authorities or courts at the French or EU level, including as set out by a decree; and
- disclose publicly in certain cases set out by law (in some cases, after at least an external report that was made did not lead to appropriate follow up actions).
- the list of prohibited types of retaliation against whistleblowers or their relatives has been consolidated to include intimidation and harassment; reputational damage (including online); financial losses (loss of business or revenue), etc.
- the protection of whistleblowers against abusive proceedings has been strengthened (i.e the maximum fine has been increased to EUR 60,000 and the whistleblower may be awarded a provision for legal costs or, when his/ her financial situation has been seriously impacted as a result of the report or public disclosure, a provision for financial assistance (in French “subsides”);
- the protection of whistleblowers in terms of liability has been extended so that they will not be criminally or civilly liable for damages caused by reporting publicly if they had reasonable grounds to believe that public disclosure was necessary to protect the interests at stake;
- the guarantees of confidentiality are strengthened, in particular concerning "any third party mentioned in the alert."