France’s Labor laws are heavily skewed toward protecting employees. For one, there is no at-will employment in France. This means employees cannot be let go without cause, such as economic reasons or redundancy. There are also several mandatory entitlements, such as the 35-hour work week, the right for employees to disconnect after work, request remote work, and so on.
Another way employees in France are protected is through France’s embrace of labor unions, collective bargaining agreements, and the right to strike. French laws allow employees to form unions that bargain on their behalf and protect them from retaliation by their employers.
Understanding how the French labor system works is essential for any company planning to expand in France, including hiring remote employees.
The Role of Labor Unions in France
Labor unions in France play a crucial role in representing employees’ interests and are deeply ingrained in French culture. Union employee representatives negotiate wages and working conditions on behalf of workers and ensure company compliance with labor laws. However, despite the importance of trade unions in France, only 8% of workers belong to one, which is much lower than in other European countries.
While membership may be low, unions still significantly impact labor laws in France. That’s because workplace elections are held every five years and determine which trade unions will negotiate employment issues on the national and local levels.
This means that even if your employees don’t belong to a labor union, your company is impacted by any legal changes negotiated by the unions.
The French Constitution and Code du Travail
The foundation of labor rights in France is baked into the country’s Constitution, which guarantees workers’ right to form, join, and defend their interests through trade unions. French labor laws protect workers’ rights while ensuring that unions operate within established legal boundaries.
The French Labor Code (Code du Travail) is the primary legal document that outlines the rights and obligations of employers, employees, and unions. It includes detailed provisions governing labor unions’ formation, operation, and activities. Key aspects covered by the Labor Code include:
- Union Formation and Membership: Employees have the right to join, participate in union activities, and hold union office.
- Union Representation: Unions can represent their members in employer negotiation and legal proceedings.
- Collective Bargaining: The Code stipulates the rules that must be followed during collective bargaining.
- Industrial Actions: Guardrails are in place to ensure that essential services are maintained, even during worker strikes.
Other essential pieces of labor legislation include:
- Loi Waldeck-Rousseau: This law legalized labor unions in France, allowing workers to form associations without government authorization.
- Lois Auroux (Auroux Laws): Introduced in the 1980s, these laws created provisions for collective bargaining and employee participation in company decisions.
- Lois Macron (Macron Laws): Created to modernize the French labor market, the Macron Laws provide more flexibility in labor relations and collective bargaining processes.
The Collective Bargaining Process in France
Collective bargaining agreements (CBAs) are legally binding employment agreements negotiated between employers and unions to ensure fair treatment of workers. The French collective bargaining process involves negotiations between employers and labor unions to establish set agreements.
France has three primary levels of collective bargaining: national, industry, and company. Each level serves a distinct purpose and addresses different aspects of labor relations. Understanding each level is essential to navigate the French labor market effectively.
National-Level Agreements
National-level agreements, or interprofessional agreements, are broad agreements created through negotiations between major national labor unions and employer organizations. These agreements set fundamental labor standards and regulations that apply to all workers in France.
Some examples of national-level agreements include:
- Minimum wage standards
- Social security
- Health and safety regulations
- Working conditions
Industry-Level Agreements
Industry-level agreements, also known as sectoral or branch agreements (convention collective de branche), are national contracts negotiated between unions and employer organizations.
The agreements cover much of the same ground as those at the national level but are tailored for specific industries, such as hospitality or transportation. For example, industry-level agreements can set specific wage standards for teachers or working condition standards for the construction industry.
Company-Level Agreements
Company-level agreements (accords d’entreprise) are negotiated between a company’s management team and employees (or their representatives). The purpose of company agreements is to focus on the specific rules and regulations within an individual place of business.
Some of the issues covered by company-level agreements include:
- Wage scales within the company
- Performance bonuses
- Benefits
- Overtime pay
- Employee breaks
- Remote work policies
For example, a company-level agreement can stipulate agreed-upon core work hours and the degree of flexibility employees have to work remotely.
Rights and Protections for Union Representatives
Specific rights and protections exist so union representatives (délégués syndicaux) can perform their roles without fear of retaliation. These include:
- Protection against dismissal
- Time off for union activities
- Access to information
The Collective Bargaining Process
While each negotiation is unique, it follows the same basic steps, starting with preparation. Each side, employer and employee, wants to identify the issues to be negotiated and formulate a strategy prior to the meeting.
The two sides sit down together, and the negotiation process begins. Representatives from the union and the employer will make proposals and counter-proposals as they work to find a compromise that both parties can agree on.
Once a consensus is reached, the collective agreement is drawn up, outlining the terms agreed upon by each side. Once signed, the agreement is legally binding. The new contracts are implemented, and the union and the employer are each responsible for ensuring compliance.
It’s important to note that these are fixed-term contracts, only valid for the specific period laid out in the agreement. As the agreement’s expiration date approaches, employers and union delegates will review the current terms and decide if there are any aspects of the agreement they want to revise before the next negotiation.
The Role of Labor Strikes in Labor Disputes in France
Strikes in France are a significant negotiation tool in labor disputes. For example, in May 2024, Paris railway workers and garbage collectors went on strike just two months before the Olympic Games. Strikes allow workers to air their grievances and demand better working conditions, wages, and benefits from their employers.
Strikes are governed by a legal framework that balances the needs of workers to protest for better working conditions, combined with the need to maintain essential services. The strike must be endorsed and carried out by the union. Meaning one worker can’t decide to strike on their own. Employees are allowed to picket but can’t actively disrupt the ability of a company to function.
Workers in public service roles are required to give five days’ notice before striking. This is known as the préavis de grève. Additional restrictions exist for employees who perform essential services — such as those striking railway workers and garbage collectors — to ensure minimal services are maintained.
Once the strike is in motion, union representatives and employers will meet to discuss the employees’ demands and work on creating a solution that both sides can agree on — ending the strike.
TL;DR: A Quick Summary of French Labor Unions, Collective Bargaining, and Strikes
French law grants employees the right to form unions, negotiate on their behalf, and strike without fear of employer retaliation.
There are three levels of collective bargaining:
- National: Sets national labor standards
- Industry: Creates standards governing specific sectors
- Company: Negotiations specific to one business and its employees
Strikes can be a major negotiation tool in the French labor system. However, laws are in place to ensure that essential services are not impacted.
Hiring in France with an EOR
Understanding French labor unions and the collective bargaining process is essential for companies that hire French employees. Labor laws ensure that workers’ rights are protected and can change over time. As the labor market and laws evolve, businesses must remain compliant to avoid potential legal complications.
Partnering with a global Employer of Record (EOR) like RemoFirst can simplify this process. We’ll ensure that your company fully complies with French employment laws while also managing your global payroll, employee benefits, and more. Book a demo to learn how we can help you hire in France and 180+ other countries.
