Labour Law Newsletter, January 2025
Legislative
Apprenticeship Assistance: The Government Announces a Reduction
The Government has announced a forthcoming decree to be published in January 2025, setting the amount of exceptional assistance for companies that hire apprentices at the following levels:
- €5,000 for companies with fewer than 250 employees (during the first year of the contract);
- €2,000 for companies with 250 or more employees;
- €6,000 when apprentices have a disability, which can be combined with other specific aid.
Pending the publication of the decree, for all apprenticeship contracts entered into on or after January 1, 2025, a grant of up to €6,000 is awarded for the first year of the contract for the preparation of a certificate or diploma up to the baccalaureate level (two years of higher education for overseas territories), exclusively for companies with fewer than 250 employees.
Benefits in kind related to electric vehicles: the BOSS announces the extension of exclusions in a future decree
The tax base exclusion measures applicable to the valuation of the benefit derived from the provision of an electric vehicle and charging stations were set to expire on December 31, 2024.
In its update of December 26, 2024, the BOSS announced that these exclusions will be extended by decree.
Thus, the benefit in kind resulting from the provision of an electric vehicle will continue to be subject to a 50% tax allowance, and the cost of electricity will not be included in the calculation. Similarly, the benefit in kind resulting from an employee’s non-work-related use of a charging station provided by the employer at the workplace will continue to be exempt from social security contributions.
Unemployment Insurance: Changes to the Rules
Effective January 1, 2025, Decree No. 2019-797 of July 26, 2019, as amended, regarding the unemployment insurance system will no longer apply, and the new unemployment insurance rules, which have been definitively approved by the government and published in the Official Journal, will take effect.
These measures will apply to job seekers whose employment contract was terminated on or after that date, except for those involved in a dismissal procedure initiated before that date.
- Effective January 1, 2025:
Extension of the third adjustment period for the employer’s unemployment insurance contribution (“bonus-malus”) until August 31, 2025. The adjusted rates notified remain in effect until that date, subject to a 0.05-point reduction effective May 1, 2025.
- Effective April 1, 2025:
Reduction of the membership requirement for seasonal workers from six to five months; two-year extension of the age limits for senior worker programs; the age at which unemployment benefits are maintained until full retirement is raised to 64; extension of the benefit period (137 days) in cases where the job seeker over 55 is undergoing training…).
- Effective May 1, 2025:
Reduction of the unemployment insurance contribution rate paid by employers by 0.05 percentage points (from 4.05% to 4%).
Decree of the Prime Minister dated December 19, 2024
Case Law
The employer must inform employees of the criteria used to select candidates for internal reassignment
The Court of Cassation holds that, pursuant to Article D. 1233-2-1 of the Labor Code, when a list of internal reassignment opportunities is published, the employer must specify the selection criteria established in order to identify the selected employee in the event of multiple applications for the same position. Failure to do so constitutes a breach of the employer’s redeployment obligation and deprives the dismissal of a valid and serious cause.
Cass. Soc., 8 janvier 2025, n°22-24.724
Jurisdiction of the Administrative Court over Disputes Concerning the Occupational Categories in a Social Plan
The Administrative Court has exclusive jurisdiction over disputes concerning the definition of occupational categories contained in a Social Plan. This matter does not fall within the jurisdiction of the Labor Court under any circumstances.
Cass. Soc., 11 décembre 2024, n°23-18.987
Three-year statute of limitations for an action for damages following the annulment of a dismissal authorization
The Court of Cassation clarifies that when a protected employee whose authorization to dismiss has been definitively revoked, and who does not request reinstatement within the two-month period, may file a claim for compensation within the three-year statute of limitations applicable to wage claims, insofar as the compensation provided for in Article L. 2422-4 of the Labor Code constitutes an element of wages.
Cass. Soc., 11 décembre 2024, n°23-10.439
Loss of Trade Union Representativeness Obtained in the First Round of Voting When Workplace Elections Are Annulled
The annulment of workplace elections results in trade unions losing the representativeness they obtained in the first round of voting, effective as of the date the annulment was pronounced.
Cass. Soc., 11 décembre 2024, n°23-16.249
Assessment of incapacity when requesting authorization to dismiss a protected employee
When the Administration receives a request for authorization to dismiss an employee for incapacity, it may not authorize the dismissal if the incapacity is related to the employee’s representative duties. However, the Council of State specifies that the link between the cause of the incapacity and the employee’s mandate is assessed as of the date on which the Administration renders its decision.
CE, 2 décembre 2024, n°470513
Assessment of the reality of the adverse consequences invoked by the employer in the event of a refusal to grant a sabbatical
The Court of Cassation clarifies that in the event of a dispute arising from an employer’s refusal to grant an employee a sabbatical, the trial court judges must assess the reality of the adverse consequences invoked by the employer.
Cass. Soc., 20 novembre 2024, n°23-18.446
