Obligation to negotiate the distribution of extraordinary profits

Published on : 29/11/2023 29 November Nov 11 2023

Obligation to negotiate the distribution of extraordinary profits

The bill on the sharing of value within the company, approved by the National Assembly at the beginning of the summer, will be discussed again in the Senate in October.

It specifically includes a mechanism for sharing exceptional profits, applicable to companies with at least 50 employees that have a union delegate. The text stipulates that companies must negotiate the modalities of this sharing: the notion of an exceptional increase in profits must be defined, as well as the modalities of the resulting value sharing. The share can take the form of an additional participation or profit-sharing, an additional contribution to a savings plan, a value-sharing bonus, or the creation of a profit-sharing scheme if one does not exist in the company.

Companies that have already implemented a profit-sharing agreement with a special clause that takes into account extraordinary profits, or those that have set up a mandatory profit-sharing agreement with a more favorable formula than the legal formula, will not be affected.
 

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