In the wake of the reform of the French Labor Code implemented by the so-called Macron Ordinances of September 22, 2017 and the reform of the apprenticeship and vocational training system introduced by the Law on professional future of September 5, 2018, the reform of unemployment insurance is an additional part of the “major transformation” of the French labor market that has been carried out by Emmanuel Macron over the past two years.
In accordance with the announcement made last February, the Government re-took the leadership on this thorny issue after unsuccessful negotiations between social partners, with the aim of achieving “full employment”. During a press conference on June 18, 2019, Prime Minister Édouard Philippe and Minister of Labor Muriel Pénicaud unveiled the key features of this reform which will be set out in a Decree to be published by the end of the summer.
This article provides a brief presentation of the main contemplated measures.
Message received loud and clear by the Paris Court of Appeals!
In line with the highly noted decision issued on November 28, 2018 by the Labor Chamber of the Cour de Cassation (French Supreme court) which, as we commented in December 2018, sent a strong signal to the lower courts by recognizing the reclassification of the agreement between a deliverer and a digital platform as an employment contract, the Paris Court of Appeals held for the first time that the contract binding Uber to one of its drivers ought to be analyzed as an employment contract.
In an eagerly awaited judgment handed down on November 28, 2018 that will be undoubtedly become a landmark decision, the Labor Chamber of the Cour de Cassation (French Supreme Court) ruled for the first time on the legal classification of the agreement between a delivery rider and a digital platform.
While the majority of the lower courts asked to adjudicate similar cases were reluctant to recognize the existence of an employment relationship, the Labor Chamber curbs such reluctance and bites the bullet: Yes, it is possible to reclassify such agreement as an employment contract if it follows from the factual conditions in which the professional activity is carried out that the existence of a subordination link can be established.
The interests of companies undoubtedly lie at the heart of the reform of the French Labor Code introduced by the so-called Macron Ordinances of September 22, 2017. Driven by the concept of “flexicurity”, the objective of the Government was to give more freedom and security to both companies and employees.
In this context, how to offer companies a more secure framework whereas French labor law is internationally known for its complexity, its rigidity and its large corpus of rules? One of the solutions adopted by the Government is to help better assess a risk so feared by French and foreign businesses: The litigation risk.
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