août 31, 2017
WHAT WILL CHANGE ?
HOW WILL IT IMPACT INTERNATIONAL INVESTORS?
CLARITY – The government intends to clarify the French Labor Law, making it more comprehensible for employees, small business but also International investors. The labor code will be digitalized and some procedures such as the deadline to dispute contract termination will match EU standards.
PREDICTABILITY – Setting a damages scale for wrongful dismissals as well as limiting the timeframe to refer cases to Labor Courts is likely to give more visibility and security to international investors.
FLEXIBILITY – International companies choosing to invest in France will now be able to adapt to their economic environment with more agility as only their economic health in France will be taken into consideration.
WHAT HAPPENS NEXT?
September 22nd – Approval of the executive orders during a Cabinet Meeting. The executive order will then be signed by the President and immediately come into effect.
September 28th – Review by the Constitutional Council.
Other upcoming reforms that will impact France’s Competitiveness
September 27th – Presentation of the 2018 Budget (PLF). It will include a decrease of employees’ and employers’ contributions, said Édouard Philippe this morning.
Before the end of 2017 – Presentation of a Bill detailing the tax evolutions for the up-coming 5 years to improve predictability.