France: Labour law & Covid-19
Following the announcement of the French prime minister, Edouard Philippe, the French Labour Ministry stated on March 14th 2020 that all companies which business activities have been curtailed are eligible by the ministerial order of 14 March 2020 to partial unemployment mechanism. These businesses include restaurants, cafés, and some shops. The ministerial order classifies Covid-19 as an “extenuating circumstance” covered by Article R.5122-1 of the French Labour Code, thus making it possible to activate the partial unemployment mechanism. Thus, this mechanism is likely to apply to all companies affected by a drop in activity due to current circumstances, in order to avoid layoffs of all or part of the staff. Applicability of the mechanism Employers that deem it necessary to do so may place their employees on a partial unemployment:- by either temporarily closing completely or partially their place of business or
- by reducing working hours at their place of business below the legal threshold of working hours.
- Implementing the mechanism
- Consult with their Economic and Social Committee ;
- Request authorisation from the Regional Department of Companies, Competition, Consumption, Labour and Employment (DIRECCTE) to activate the partial unemployment mechanism, while stating the reason for the reduced amount of business activity, its expected duration, and the number of employees concerned.
- Inform employees on the partial unemployment mechanism, how long it is expected to last, and the number of employees involved;
- Request authorisation from DIRECCTE to activate the partial unemployment mechanism, while stating the reason for the reduced amount of business activity, its expected duration, and the number of employees concerned.
- 74 euros per unemployment hour for companies with 1 to 250 employees;
- 23 euros per unemployment hour for companies with more than 250 employees.