What's the new law?
France has passed a law that requires companies with 11 or more employees to implement a profit-sharing plan for their staff. This move aims to ensure employees benefit directly from their company's success. The new law lowered the headcount required from 50 to 11.
Who is impacted?
All companies operating in France with 11 or more staff members are affected by this requirement.
This applies even if the company's headquarters are outside France, as long as they employ staff in France.
The law requires that as long as the company has made a profit of 1% or more in the last three consecutive years, and the average headcount of the company has been 11 over the same three consecutive years – a profit-sharing plan is required.
What must companies do?
Companies must take the following actions to comply with the new law:
Next Steps for Affected Companies
France - Global Insights
For further detailed guidance on payroll, employment law, and compliance in France, visit our France Global Insights on the activpayroll website.
Next Steps
For more information on how this law may impact your business - and how activpayroll and Bridgely can support you - please contact our Head of Partnerships, Debbie Gibson, at Debbie.gibson@activpayroll.com for assistance.
