1. Publication of the law amending the calculation of damages for risk-takers
L. n°2024-537, June 13, 2024, JO June 14
The law to "increase the financing of businesses and the attractiveness of France" amends article L511-84-1 of the French Monetary and Financial Code, with effect from June 15, 2024.
This article already provided for risk-takers, as defined in Delegated Regulation (EU) No 604/2014, to exclude from the calculation of damages ordered by a judge in the event of termination of their employment, the part of their variable remuneration that may be reduced or subject to clawback.
It is now adapted with new delegated regulation (EU) 2021/923 of March 25, 2021, with regard to the definition of risk-takers, and new limitations are added.
- Risk-takers have now a broader meaning by reference to Articles 5 and 6 of Delegated Regulation (EU) 2021/923, which set out detailed quantitative and qualitative criteria that can be summarized as a member of staff of a financial institution who either holds a position of high responsibility, has a remuneration package in excess of €750,000, or is in the top 0.3% of remunerations in his or her institution.
A certain number of functions have now been added, in particular, management functions in the fields of legal affairs, the soundness of accounting policies and procedures, the prevention of money laundering and the financing of terrorism, as well as the management of outsourcing agreements for key functions.
- More specifically, with regard to traders and their direct managers: the law provides that the amount of monthly remuneration taken into account for the calculation damages for unfair dismissal, is limited to the amount of the annual social security ceiling (i.e. €46,368 in 2024, for employees of a credit institution, a finance company, an investment firm or an insurance or reinsurance company, who have the power to make, approve or veto a decision concerning trading portfolio transactions (traders), or who directly manage such a group of people.
1.2. Publication of model documents of information about the employment relationship
Order June 3, 2024, NOR : TSST2413775A : JO, June 16
https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000049723984
Directive (EU) 2019/1152 of the European Parliament and of the Council of June 20, 2019 on transparent and predictable working conditions in the European Union, had provided for the communication of a certain amount of mandatory information to newly hired employees. It was transposed by Decree no. 2023-1004 of October 30, 2023, listing the information due to employees, the present order publishes five model information documents grouping the main information to be communicated to employees, two documents concern employees seconded as part of a European service provision or called to work abroad for a period exceeding four consecutive weeks (Annexes 4 and 5 of the order).
One document summarizes all the information to be provided, which must be given to the employee within seven days of hiring (Appendix 1).
Employers who do not have all the information immediately available may choose to provide the information to the employee in two stages, within seven days and 30 days (Appendices 2 and 3).
Please note that these are not model employment contracts, but information documents. It is not advisable to contractualize a certain amount of information. The use of these models is not compulsory, but helps to ensure that all information has been provided.
It is advisable for employers to draw up information document templates adapted to their collective bargaining agreements and schemes in force, to be given to employees according to their situation.
When information provided to employees has changed, the employer must provide them with a document indicating the change as soon as possible, and no later than the date on which it takes effect. On the other hand, the employer does not have to inform the interested parties when the modification results exclusively from a change in the legislative and regulatory provisions or in the contractual stipulations in force.
This information may be sent on paper or electronically. In the latter case, the employee must have a means of accessing information in electronic format, be able to save and print the information, and the employer must keep proof of transmission or receipt of this information.
1.3. New cases of early release of profit-sharing and employee savings plan (PEE) proceeds
Decree no. 2024-690 of July 5, 2024
- In order to benefit from preferential tax and social security treatment, the proceeds of the statutory profit-sharing agreement and/or sums invested in an employee savings plan must be blocked for at least five years, except in a number of cases listed by law. Articles L. 3324-10 et seq. of the French Labour Code have been amended to include three new cases of early release: allocation to energy renovation work on the principal residence; acquisition of a vehicle powered exclusively by electricity, hydrogen or a combination of the two, or a pedal-assisted cycle; close family caring activities carried out by the person concerned, his or her spouse or PACS partner for close relatives. For the first two situations, the request for early release must be submitted within six months of the triggering event; for the last situation, it may be submitted at any time.
