Salary is not the only remuneration that employees can
receive.
Profit sharing is a significant example.
According to Article L. 3322-2 of the French Labor Code,
companies employing at least 50 employees must share the results
with their employees with by means of a redistribution of part of
the profits.
The Labor Code provides for special methods of calculation of
profit sharing amounts.
There are two types of formula for the calculation and
distribution of the profit sharing: the first is set out by law and
the other, secondary formula, can be provided in a collective
agreement that applies to the company.
In both formulas, the net profit figure is essential. The
determination of net profit is not an easy task as there are a
number of subtleties.
