The French Conundrum

#Macron is proposing reforms that are being cheered by business, but who will be the real winners? What do Asian corporates with employees in these markets need to be considering? This is one of our topics at the #IusLaboris Shifting Worlds conference in Hong Kong on 6 October, along with #Brexit and #BRI and workplace stress. Please find details on registration here.

The French Conundrum

At the Shifting World Dynamics and the Evolving Workplace: Global labour law conference being held in Hong Kong on October 6th, Pascal Lagoutte from Capstan Avocats will be speaking on Macron economics and how this might effect those Asian firms who employ workers in France.

The recently elected French president Emmanuel Macron has been pushing for the labour reforms that will increase the flexibility of the country’s labour laws. On September 22, Macron formally signed five decrees that are to be the first round of the reforms that aim to lower unemployment and revitalize the French economy. These decrees are ambitious and come quickly, being pushed through just five months into his presidency. Macron’s changes have garnered support from businesses, but have also come under criticism by the traditionally powerful unions who claim that his changes will weaken job security. In the conference, we will discuss three key areas about the reforms:

Liberalising the French labour market – who will be the winners and the losers?

When the reforms come into effect, who will stand to gain from them? The current French labour laws are infamous for being restrictive and rigid. Liberalising the market will cause major changes to the way companies make hiring and firing decisions, the willingness to invest or set up a branch in France, and how employees negotiate with companies. Most of the changes aim to increase flexibility for businesses, both local and international. At the same time, unions see the potential of losing influence if the reforms pass. From businesses, to ordinary employees, to unions, all will be affected by the reforms.

More legal security, the proposed changes to severance payments and dismissals

How will the reforms directly tackle the difficult subject of job security? Macron’s proposed changes include some job security measures. These changes include a 25% increase in severance packages. They also include a major change in the way collective dismissals on economic grounds are handled. How then will companies need to handle layoffs after these changes and will they be facing more difficulties?

More flexibility for companies

The reforms aim to provide more flexibility for companies by cutting a lot of the red tape. Amongst the major changes are the merging of the employee representative bodies required in companies with more than 50 people, and the new opportunities to determine company matters in-house. What are the implications of increased flexibility for company hiring habits?

Macron economics is just one of the topics that will be discussed at the conference; Brexit, BRI, flexible workplace arrangements and workplace stress will also be covered. The conference is hosted by Ius Laboris and in collaboration with  British Chamber of Commerce in Hong Kong. Full details are available here.