New profit-sharing obligations for companies
Published on :
04/07/2023
04
July
Jul
07
2023
A new « profit-sharing » bill should be discussed and adopted by Parliament this summer. Leading from a National Interprofessional Agreement, it aims to more closely associate workers to their employers’ economic performance including small and mid-size businesses.
The bill namely includes the following:
- companies with less than 50 employees could decide, on a voluntary basis, to implement branch or company-level profit-sharing schemes which could derogate, including negatively, from the legal profit-sharing calculation formula ;
- from January 1st, 2025, companies employing between 11 and 49 staff will be required to implement a profit-sharing scheme if they are profitable (net profit before tax is equal to at least 1% of sales for three consecutive years). Companies having already implemented a profit-sharing scheme and sole proprietors will be exempt ;
- companies with 50 staff or more and who have one or more trade union delegates will be required to engage in mandatory collective bargaining in case of exceptional profit increase. Namely, companies already subject to the obligation to implement profit-sharing schemes at the date of the publication of the law will be required, by June 30th, 2024, at the latest, to enter into negotiations to define what constitutes an exceptional increase in profits and how it will be shared with employees.
Employers can already examine their company's existing profit-sharing schemes, as well as any other value-sharing bonus schemes.
History
-
13 law firms reaffirm their commitment to respecting others
Published on : 14/12/2023 14 December Dec 12 2023InsightsPRESS RELEASE 13 law firms reaffirm their commitment to respecting others...
-
New profit-sharing obligations for companies
Published on : 04/07/2023 04 July Jul 07 2023Newsletter / Looking FowardA new « profit-sharing » bill should be discussed and adopted by Parliament t...
-
Pension Reform: First two decrees published ahead of September 1st implementation | "No Show, No Call” absenteeism
Published on : 04/07/2023 04 July Jul 07 2023Newsletter / New legislationNew pension reform: the first 2 implementation decrees have been published in...