ARTICLE · 31 AUGUST 2017

France's Employment Reforms To Go Into Effect In September

Ogletree, Deakins, Nash, Smoak & Stewart

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As President Emmanuel Macron had promised, major employment reforms are under way in France and the related ordinances have been published on August 31, 2017, after ...

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As President Emmanuel Macron had promised, major employment reforms are under way in France and the related ordinances have been published on August 31, 2017, after extensive negotiations with national unions, concerning, in particular, the following issues:

Capping Damages Awarded by Employment Tribunals in Unfair Dismissal Cases

Damages will now be capped at three months' salary for employees with two years of seniority (employees with fewer than two years of seniority will be entitled to an award equal to one month's salary). Damages will be capped at 20 months' salary for employees with more than 30 years' seniority. Before this ordinance went into effect, the amount of damages awarded in unfair dismissal cases was left to the discretion of the employment tribunals and was not capped, leading to extensive uncertainty for employers. These damages caps will not apply in discrimination-related cases.

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