HOW DOES FLEXICURITY TRANSLATE IN FRENCH? Overview of the recent changes to improve flexibility and security of employment Sybille Idrac Raphael Ancien Avocat au Barreau de Paris Solicitor of the Supreme Court Human Resources Manager

A dangerous word Accord interprofessionnel sur le marché du travail (11/01/08) Projet de loi portant modernisation du marché du travail (8/04/08)

A dangerous word 1.The traditional route: a dismissal 2. The damage control strategy: settlement agreement 3. The alternative way: fixed-term contract

1.The traditional route: a dismissal

Currently: slow and sticky procedure: long 5 days, 15 days, 3 months Collective redundancies: “Plan de sauvegarde de l’emploi” Justification : precise and objective

1.The traditional route: a dismissal Loopholes: Trial period CNE (Contrat Nouvelle Embauche) 1.1 millions in 2 years but contrary to ILO convention 158?

1.The traditional route: a dismissal The changes: more secure than flexible -Suppression of CNE (art. 9) -Real and serious justification communicated to the employee (art. 4)

1.The traditional route: a dismissal -Notice during trial period (art. 2) 48 h during 1st month, 1 week after 1 month, 1 month after 3 months. - Dismissal indemnity (art. 4) if > 1y seniority, 1/5e month/seniority year

2. Damage-control strategy: settlement agreement

Currently: highly desirable but delayed and risky France ¼ of dismissal for personal motive result in a claim for unfair dismissal Unfair dismissal claims: UK France

2. Damage-control strategy: settlement agreement How long? 1 year (1 st instance), 18 months (appeal) How much? Min 6 months if > 2 y seniority 2 to 3 years if staff representative How many? in UK, in France

2. Damage-control strategy: settlement agreement Settling: Delayed : after reception of the dismissal letter by registered mail and cooling off period of 2 weeks Resignation not an option because of taxable regime and loss of unemployment benefits Risky : cancellation if insufficient consideration

2. Damage-control strategy: settlement agreement A new consensual termination (art. 5): quicker, flexier but still secure Avoids dismissal procedure and resignation tax regime Dismissal and unemployment indemnity Cancellation right of 14 days Homologation by Labour Inspectorate (15 days)

3. The alternative route: fixed-term contract

Currently: an escape route tightly controlled -More expensive -Termination… at the term -Permissible only in specific listed cases

3. The alternative route: the fixed-term contracts The flexisecure improvements COD « Contrat de travail dont le terme est déterminé par la réalisation d’un objet défini défini » (art. 6) Longer (18 to 36 months) Early termination for real and serious cause

Conclusion: flexi, secure or neither? Sybille Idrac Raphael Ancien Avocat au Barreau de Paris, Solicitor of the Supreme Court, Human Resources Manager