Welcome to the West Thames HR Exchange Club

1. Welcome to the West Thames HR Exchange Club Meeting at Royal Holloway College 10th January 2001

2. Agenda • Minutes of Last Meeting • Update on Participants and Welcomes • Feedback on Employment Law Seminar • Round Robin and Salaries for 2001 • Domestic Relocation Survey Feedback • Country Profile Discussion – France • Presentation from ORC – relocation allowances • Useful HR Websites • Any other business

3. France

4. Employment Status • There are recognised employment Statuses • Non Cadre • Ouvrier (Worker) • Employe (White collar worker) • Cadre (Managers) • Cadre Superieur (Senior Managers) • These statuses have an impact on representation on works councils and on Risk benefits • Directeur General • Generally a form of self employed status although many have employment contracts • The Fudge category - Assimile Cadre • White collar on Management conditions!

5. Forms of Contracts • EU - A written statement of the main terms of employment must be given to the employee within one month of the agreed start date of employment. • There is no statutory definition of an employment contract and they only need to be in writing for certain occupations such as seamen. However good practice makes it advisable • If the contract is for a salaried employee or manual worker it may well refer to any applicable collective agreement as the terms of that take precedence over the individual contract.

6. Contents of Statement • Statement must show (EU) • name of employee • Start date • job description • amount of pay and method of payment • termination date if it is a fixed term contract • reference to internal regulations • any applicable collective agreements • length of any probationary period

7. Contract • The contract must have the three key elements of French law: • consent • capacity • lawful purpose

8. Probationary Periods • A probationary period can be specified in the contract and may be reached by collective bargaining. Typically the amounts by category of employee would be: • manual workers - one to two weeks • employees - one to two months • executives - three to six months • During this period termination by the employer can be without notice provided there is no malicious intent.

9. Employment Covenants • Confidentiality • Employees must not disclose to third parties trade or business secrets, either during employment or thereafter. • May not work for a second employer during the same employment period without permission which can be competitor • Non-Compete Clause • Non compete clauses permitted – must not prevent earning a living, and specifies duties, time and geography • Employee is paid a sum to compensate for reduced earning power.

10. Employment Covenants • Two types of inventions, • Those developed by employees in the normal course of their employment • Belong to employer • Employee entitled to bonus and may have name associated • arrived at independently by the employee. • belong to the employee unless the employer can demonstrate that it was as a result of information gained during employment.

11. Working Hours • The Aubry Law • The working week has been 39 hours, but will be 35 hours according to the following timetable: • 01/01/2000 Companies with more than 20 employees • 01/01/2002 Companies with 20 or fewer employees. • French Working Time Directive more restrictive than EU • Maximum of 46 hours averaged over 12 weeks and further maximum of 130 hours overtime in any year • There is mandatory rest break of 11 hours between any two consecutive shifts and a break of 20 minutes after 6 hours continuous working. • In addition there must be a 24 hours break at least once per week and this must fall on a Sunday unless special conditions apply. • Time off in exchange for reduction in working hours allowed • Time off in lieu as well as overtime pay for 50% of hours (complex – see law)

12. January 1st Easter Monday May 1st May 8th Ascension Day Whit Monday July 14th August 15th November 1st November 11th December 25th Public Holidays • Employees not allowed to work on Public Holidays under Labour Code • Only 1st May paid by law, rest by collective agreement or custom. • There are some local religious holidays so check….

13. Holidays • The basic entitlement is five weeks, • one week has to be taken separately. • Holiday accrued at the rate of 2.5 days per month of service • Use to calculate holiday pay or entitlement of an employee leaving or joining a new company. • Annual Vacation Period which is May 1st to October 31st. • Common to have an annual shutdown - company must notify the dates at least 15 days in advance, but if employees are forced to work in this period it is not counted against holiday. Many companies work staggered holidays however. • To persuade to stagger holidays outside main period, • supplementary days for those who take holiday outside the main period, at the rate of 1 day for 3 to 5 days taken outside and 2 days if six or more are taken. The fifth week does not count towards this, only days from the main four weeks. • Extra Holidays for minors

14. Time Off • Maternity Leave • Not last two before or six after (exceptions!) • Can start at 6 before and up to 10 after • Multiple birth or dependent children extends – roughly 8 before, 22 after • Paternity Leave • 3 days in week before or after

15. Time Off • Parental Leave • Usual EU Laws apply • Health and Safety Committees • Elected members of Health and Safety Committees are entitled to be credited with between 2 and 20 paid hours off according to the size of the organisation • Public Duties • Employees standing for election for public office such as the National Assembly or Senate may take 20 days off unpaid.

16. Time Off • Personal Time • time off for weddings and funerals in the family • "Case Law" Time Off • Cour de Cassation has granted time off • Typical cases are Paid leave of 12 days off for trade Union Education , 12 days unpaid for attending a Union Convention or Occupational training, • Employees under 25 years old may take 6 days unpaid for youth or sporting activities. • Employees may claim up to 6 months off, unpaid for “International solidarity" projects - usually charitable - employer can refuse on business grounds

17. National Minimum Wage • There is one! • SMIC (salaire minimum interprofessionnel de croissance) • Applies to each hour worked and to each month • Minimum pay amounts established in industry wide collective agreements can be extended to non-signatory parties • Reviewd annually in line with inflation • Applies to 18 year olds and over • Covers about 11% of workforce • Currently FF7101.38pm reviewable now

18. Pay • PAYE does not operate for Tax • Compulsory Social Security deductions • Compulsory payslip for all pay transaction– must show: • Pay and voluntary deductions • Social Security deductions • Grade and scale plus collective agreement name • Holiday pay • Bank transfers or cheques compulsory over FF10,000

19. Social Security Ceiling • Current Ceiling for 2000 is FF14700pm • Contributions to the various Social Security schemes are based on percentages of income between specific fixed limits. Each tranche is given a letter, i.e. Tranche A, B, C, D etc. The tranches are defined by reference to the current Social Security ceiling, so Tranche A is from 0 - 4 times the ceiling, B from 4 to 8, C from 8 - 12, etc.

20. Contributions • The contributions for Risk benefits are currently around 12.8% of total salary for employers and 0.75% of total salary for employees. Employees also carry an additional 0.1% total salary for widow(ers) benefit.

21. Sick Pay • State Short term Disability • 50% of Tranche A of salary up to a daily limit of 1/720 the annual SS ceiling. Payable immediately in case of accident, from the fourth day in case of illness, for up to one year, or three years in case of serious illness. Increased to 2/3rds of Tranche A from the 29th day where the employee has three dependent children, subject to a limit of 1/540 of the annual SS ceiling. • Company • Typically provides benefits from the end of a pre-determined waiting period, which can vary from 4 to 180 days, but generally around 90 days for cadres and 30 days for non-cadres. • The benefits provided are a top up of pay to 75% of salary, including the Social Security amount. • In the high tech area and under collective agreements, benefits can be more generous than this, with the top up applying from the fourth day and providing benefits for 3 months to a year depending on service.

22. Long Term Sickness • State LTD - There is a benefit related to the degree of disability and an average of the last ten years salary to the SS ceiling. • Benefit Insured according to State Classification • Benefit tops up social security amount to 75% plus • 1st level disability would attract a 60% top up target • Additional 5% per dependent child up to 15%, for a second level disability. • Third level may attract the same as second level plus the death benefit in advance.

23. Death The social security amount is three months salary, up to 25% of the social security ceiling. Employer Cover Situation Level of Cover Married 280% of salary Single 240% of salary With dependent children 70% of salary for each child, usually subject to a maximum of 4 children Accidental Death double the above Death of dependent relative 50 - 300% of Social Security monthly ceiling Death of surviving spouse 100% of revalued sum if spouse with dependent children dies after employee dies, for the children

24. Medical • State • Reimbursement of expenses off tariff negotiated annually, ranging from 35 - 100% of the tariff. • plus Non Convention tariff , unchanged since 1960! • Company • Insured • Reimbursed 100% actual cost, less the social security re-imbursement, • Two causes of shortfall, • gap between Social Security tariff and percentage state reimbursement. (Ticket Moderateur.) • second is difference between actual expenditure and the tariff.

25. Equality and Discrimination • Sex discrimination rules apply, although exceptions – heavy manual work, or modelling!! • Must accommodate physical disabilities for work and environment • No Sexual harrassment – FF100,000 fine • More than 50 Employees requires annual report on Actions to help inprove situation against last year

26. Retirement • 60 is minimum age. • To qualify for full pension, have to make150 quarterscontributions • Wll be increased by one quarter per annum starting 1994 • Number required in 2003 is 160, i.e. 40 years • In effect this creates an average age of retirement in excess of 60, and is estimated to be 61 for men and 63 for women.

27. Pensions • Multiple Pensions Schemes • 1. The Social Security Pension • 50% basic salary - average of best years basic salary, up to Social Security ceiling, (ssc) • Was the best 10 years, but being increased to best 25 in stages from 1994 to 2008. • Contributions are 6.55% of Tranche A for employees and 8.2% of Tranche A and 1.6% of total salary for employers.

28. Pensions • 2. ARRCO Pension • ARRCO is calculated from basis of acquired pension points and reference salary. • Contributions amass vested points, up to retirement. Points and salary used frequently revalued – see tables • Contributions - 6% for all up to ssc and up to 3 times ssc for non cadres. • Additional contribution of 1.5% up to the Tranche A limit, plus for cadres. 12.5% between one and three times ssc. • These rates uneconomic for funding and "calling rate" of 125% of these amounts is currently required. • Contribution rate chosen by company - can be increased but not decreased. The total contribution split 60% employer, 40% employee. • The pension is paid on a pay as you go basis.

29. Pensions • 3. AGIRC Pension • Operates exactly as ARRCO - main difference is contributions paid on Tranche B and Tranche C of the salary, between 4 and 8 times the ssc and 8 and 12 times the ssc for tranche c. • The rates of contribution are also higher, being 16% in 1999 and also subject to a calling rate of 25% . • 4. Company Complementary Schemes • Insured schemes - company operates policy compulsory for all eligible employees, generating a whole life annuity. Contributions are split between the employer and employee.

30. Termination • Notice periods • Varies according to seniority. • All employees are entitled, during their first six months of employment, to the amount specified in any collective agreement or as is custom and practice. • Between six months and two years service it is one month's notice • More than two years it is two months'. • More favourable periods in collective agreements would take precedence.

31. Unfair dismissal • Service • two years service and the company has at least 11 employees. • The compensation cannot be less than six months pay and up to two years. • The court may suggest that the employee is reinstated, if this is not acceptable then compensation must be paid.

32. Unfair dismissal • Severance pay entitlement after two years service unless dismissed for serious fault • For manual workers - 20 hours of hourly pay averaged over the previous three months and multiplied by the years of service up to 10. For each year over 10 an additional one-sixth of a month's pay must be added. • For salaried employees- 10% of monthly earnings averaged over the previous three months and multiplied by the years of service up to 10. For each year over 10 an additional one-sixth of a month's pay must be added. • Contractual bonuses (e.g. 13th month) must be included proportionately as well as accrued holiday supplement. • Collective agreements may provide for payments above this level.

33. Severance Payments • For Cadres superieur the periods are much longer, especially for Directeur General: Length of Service Payment (in month's pay) Age 40 Age 50 5 years 4 – 8 4 - 8 10 years 5 – 10 6 - 12 20 years 6 – 18 8 - 24

34. Redundancy • Under 10 with at least 11 employees inform Personnel Delegate, over 50, Consult Works Council • Notify Labour Department • 10 or more, Consult Works council – give time to respond 14, 21 or 28 days depending on number • Works council can call in experts to advise at company’s expense • Labour Department must give permission, if given implementation can be after 21, 28 or 35 days depending on number

35. References • The employer may collect, hold and process personal information on employees for specified purposes. The Works Council and Candidates must be given details of the recruitment methods and this would include references. The employee has the right of access to information held and the right to append comments. • Tend to use Trial Period to deal with problems