lettre actu sociale 1er trimestre 2010 - pwc · 3rd quarter 2015 contents supplementary pension...

3rd quarter 2015

Contents

Supplementary pension contributions: change of payment frequency 1

Difficult working conditions: flexible implementation of the C3P plan 2

Umbrella companies 3

Latest State-funded employment initiatives 5

Expatriation allowance: amendment to exemption limits 7

Condition for exemption from tax on settlement payments 8

Early termination of a fixed-term contract 9

Flat-rate pay agreements: industry-wide agreement 10

In brief... 11

no. 85

Helping you work smarter...… effective accounting and tax outsourcing solutions

Cu

stom

ised offerAccounting

Total outsourcing

Partial outsourcing

Your application

PwC's applicationComputerisation of flows

Interconnection of information systems Business applications Payroll Bank statements

Purchases

Payments

Tax assistance Tax filings

Online tax filings

Tax development

Reporting PwC standard

Customised

Rely on our network to grow your business and make it even better

Find out moreIn France 650 professionals 24 offices

www.expert-comptable.pwc.fr

As of 1 January 2016, employers with more than nine employees will be required to pay their supplementary pension contributions on a monthly rather than a quarterly basis.

ReminderUntil now, supplementary pension contributions were paid by employers on a quarterly basis, irrespective of the size of the company or the number of facilities it had, whereas a distinction was made between employers with more than nine employees and those with nine or fewer as regards the frequency of payments to the URSSAF: employers with nine employees or fewer paid these contributions on a quarterly basis while those with more than nine paid them monthly.

Following the introduction of new monthly reporting requirements (déclaration sociale nominative – DSN), several new rules were adopted to standardise payment procedures. These include, for example, the abolition of one-off payments to outgoing employees effective from 1 January 2016, as announced last year by the AGIRC-ARRCO pension schemes.

Anticipating your cash requirements

Companies with more than nine employees must now estimate in advance the cash they will need to be able to pay:• by 5 or 15 January 2016, their URSSAF

contributions for December 2015; • by 31 January 2016, their

supplementary pension contributions for the fourth quarter of 2015;

• by 5 or 15 February 2016, their URSSAF contributions for January 2016; and

• by 29 February 2016, their supplementary pension contributions for January 2016.

Companies should also be aware that welfare contributions must now be paid on a monthly basis, given that the institutions that collect most of these contributions belong to the same groups as those that manage the supplementary pension plans.

Preparing for further amendments

There remains one small question however, which we believe will be resolved shortly.

It relates to companies that cross the threshold of nine employees for the first time and change the frequency with which they pay their URSSAF contributions. According to the rule currently in force, these companies will change to a monthly payment cycle on 1 April of next year and not on 1 January.

However, preserving this distinction would undermine the objective of fully standardising and simplifying the rules. We believe it is therefore only logical that these companies also be required to pay all of their contributions on a monthly basis as of 1 January Y+1. The URSSAF is expected to provide clarification on this point.

Supplementary pension contributions: change of payment frequency

French social security update | 3rd quarter 2015 – Number 85 | 1

ReminderThe Compte Pénibilité account for employees with difficult working conditions (C3P), established by the Act of 20 January 2014, partially entered into force on 1 January 2015.

Its aim is to enable all employees exposed to one or more severe risk factors over long periods of time (based on thresholds defined by a decree dated 9 October 2014) to be entitled to professional training (in order to change to a less arduous job), part-time work or early retirement.

Ten risk factors, four of which are applicable in 2015

As mentioned in Social security update no. 82, ten risk factors have been defined to assess exposure to difficult working conditions. However, at 1 January 2015, only four of them are applicable: night work, shift work, repetitive work and work in hyperbaric chambers.

The six other risk factors (manual handling of heavy loads, awkward postures, such as those putting stress on joints, mechanical vibration, exposure to hazardous chemicals, extreme temperatures and noise) will be taken into account from 1 January 2016.

Employer contributions to the Compte Pénibilité

Any employer who exposes employees to conditions exceeding the limits set by decree must pay a specific additional contribution based on the salaries of such employees. The contribution rate is 0.10% in 2015 and 2016 and will rise to 0.20% in 2017. However, the contribution rate is doubled for employees exposed to several risks.

In 2017, all employers, including those without employees exposed to risk factors, will have to pay a general contribution of 0.01% based on their total payroll.

Reporting procedures

Employers must declare if any of their employees have been exposed to risk factors using the social data declaration schedule (déclaration annuelle des données sociales – DADS) or their single monthly electronic payroll return (déclaration sociale nominative – DSN). The first such declaration must therefore be made by 31 January 2016 at the latest, based on the DADS or DSN data for 2015.

The Compte Pénibilité accounts are managed by the national pension fund (Caisse nationale d’assurance vieillesse – CNAV) and the network of regional social security institutions across France (Caisses d’assurance retraite et de la santé au travail – CARSAT). The CNAV records the points to be awarded to employees based on their employers' declarations.

Plans to simplify certain risk factors and postpone the date on which they become applicable

The cornerstone of this measure is the employer's assessment of the extent to which each of his employees is exposed to the risk factors listed in the above-mentioned Act. However, this has triggered a strong reaction from employer unions, who have condemned it as "needlessly complex".

Consequently, the French government entrusted several members of Parliament with the task of drawing up a report on how to simplify the process of assessing an employee's exposure to risk factors.

The report was submitted to the government on 26 May 2015 and outlined several possible ideas:• the possibility for an employer to assess

the extent to which his employees are exposed based on industry-wide and enforceable reference guidelines, removing the need for individual employee assessments,

• the removal of the employer's obligation to complete the individual employee risk exposure form and return it to the employee (the information will instead be sent to the social security institutions via the DADS and then the DSN system and it will be the institutions' responsibility to inform the employees),

• the amendment, development or clarification of the definition of certain professional risk factors.

Finally, the government decided to postpone the date on which the six remaining risk factors become applicable to 1 July 2016 (instead of 1 January 2016).

Difficult working conditions: flexible implementation of the C3P plan

2 | Number 85 – 3rd quarter 2015 | French social security update

Umbrella companiesFrench umbrella companies (sociétés de portage salarial) were previously mentioned in Social security update no. 72 (available in French only) in an article on the old and new systems governing the provision of labour, which mentioned that regulations governing the provision of labour did not apply to temporary work agencies, umbrella companies or employer bodies and intermediary associations.

Definition

The use of umbrella companies is a specific system whereby an employee undertakes to provide a service for a client under a service agreement but chooses to have the status of a "contractor" for an umbrella company, which acts as the "employer", rather than self-employed status. The umbrella company is responsible for paying the employee for both the work itself and for having referred business to the company. This three-way relationship involves the signing of at least two agreements:• firstly, an employment agreement is

entered into between the umbrella company and the employee/contractor, containing a list of specific mandatory clauses,

• secondly, a service agreement is entered into between the client company and the umbrella company.

History

The otherwise excellent umbrella company model was condemned by the French Constitutional Council in a decision delivered on 11 April 2014 (i.e., six years after the publication of the Act of 25 June 2008 that created the system), for being too lax in allowing the social partners to determine all of the terms and conditions for the application of the system (see the professional agreement of 24 June 2010, extended by a decree of 24 May 2013).

Accordingly, the French Constitutional Council enjoined the government to present a draft bill before the French Parliament by 1 January 2015 laying out the terms and conditions for the application of the umbrella company system so as to enshrine them in law.

However, no such draft legislation had been presented at that date and the previous arrangement could have remained in place even longer had the Court of Cassation not felt the need to intervene in order to remedy the clear injustice of the system when compared to the system for temporary work agencies, by making umbrella companies responsible for seeking their own clients and providing work for their contractors (Court of Cassation case no. 13-25627, 4 February 2015).Draft bills which were lying forgotten at the bottom of their authors' drawers with other less urgent projects were immediately dug out to be finalised, approved and presented as part of an order dated 2 April 2015.

Content

The draft bills are mainly based on the provisions that the social partners negotiated themselves as part of the professional agreement of 24 June 2010 and confirm the fact that under the umbrella company system, it is the employee/contractor who is responsible for prospecting potential clients and ultimately for sustaining the business. Furthermore, the employee/contractor must be a skilled and independent worker who is entitled to receive a minimum salary provided for in an industry-wide agreement, or to receive 75% of the monthly social security ceiling (i.e., €2,377.50 a month in 2015) if no such industry-wide agreement exists.


While the employee does not necessarily have to have "managerial" (cadre) status (though this was required under the professional agreement of 24 June 2010), his expertise must be the central reason for being contracted by the umbrella company to perform the services for the client company.

The employer must be an umbrella company whose sole business activity is providing umbrella company services. The company must give prior notification to the public authorities before commencing such business activities in order to obtain a financial guarantee, as is the case for temporary work agencies.

This measure alone protects these companies from all risks linked to illegal subcontracting or the illegal subleasing of labour. However, unlike the clients of temporary work agencies, the client company of an umbrella company can only call upon the services of an employee/contractor to perform a one-off task that does not fall within the scope of his normal and regular business activity or to provide ad hoc services requiring specialist expertise which the client company does not have in-house [article L1254-3 of the French Labour Code (Code du travail)].

Unresolved issue

On 7 May 2015, the Conseil d'Etat, France's highest administrative court, cancelled the decree of 24 May 2013 extending the professional agreement originally established on 24 June 2010, since, according to the French Constitutional Council, it should never have existed in the first place. However, to avoid causing even more harmful consequences for individuals who called upon the services of umbrella companies during that period, the Conseil d'Etat specified that the decree would not be cancelled with retroactive effect. This effectively safeguarded all umbrella company agreements which had been entered into (because the legislation at the time permitted it) on the basis of the professional agreement of 24 June 2010, i.e., until 31 December 2014.

However, another issue came to light from this situation. Umbrella company agreements entered into between 1 January 2015 and the publication of the order of 2 April 2015 have no proper legal basis. It can therefore only be hoped that a large number of agreements were not entered into during this period.


Umbrella companies

Assistance for very small businesses hiring apprentices

Delivering on the commitment he made in a speech on 30 April 2015 in Brest, the French President requested the government to promptly publish a decree enabling companies with fewer than 11 employees to receive additional State aid so that they could effectively hire apprentices at "zero-cost".

This decree was published in the Official Journal of 30 June 2015.

It provides for a flat-rate payment of €1,100 per three-month period, or €4,400 per rolling 12-month period for apprentices under the age of 18 hired as of 1 June 2015.

The State aid is paid at the end of the three-month period subject to the provision of a statement from the employer attesting to the performance of the contract. If the contract is terminated during one of the three-month periods and provided that it has not been terminated during the first two months of work (possibility provided for in article L6222-18 of the French Labour Code), the State aid shall be paid in proportion to the days worked as certified by the employer.

This aid is managed by the Agency for Services and Payment (Agence de Services et de Paiement – ASP) under an agreement signed with the French minister in charge of professional training.

The end of the emplois francs initiative

The experimental emplois francs initiative was created by a decree dated 29 June 2013 and repealed by a decree dated 2 July 2015. It consisted of offering State aid to companies which agreed to hire young job seekers living in certain underprivileged urban areas (zones urbaines sensibles) selected for this pilot scheme. However, in light of the disappointing results, the government decided to scrap the scheme entirely and replace it with a new initiative to boost job creation: the first employee grant scheme.

The first employee grant scheme

The government set out the implementing procedures of its new "first employee grant scheme" in a decree dated 3 July 2015, including its scope of application, conditions for eligibility, amount of the grant and the administrative procedures.

This is not the first time that such a grant has been introduced to encourage employers to hire their first employee. Under a previous scheme, employers were exempt from social security contributions during the first 12 months after the employee was hired, but since it was abandoned in 2005 no State aid of a similar nature has been made available.

Under the new scheme, a grant of €4,000 is made available to employers. It is paid in instalments of €500 at the end of each three-month period subject to the provision of a statement from the employer attesting to the performance of the contract, meaning that it is intended to cover a 24-month period of employment.

The amount for the first and last month of the contract is paid in proportion to the days worked as certified by the employer, and also in proportion to the employee's working hours if he is not employed under a full-time contract.

If the first employee's contract is terminated before the end of the 24-month period, the employer can continue to receive the €4,000 grant, less any amounts already paid, as long as he provides evidence that another employee has been hired as a replacement.

This grant is naturally reserved for companies that are not part of a group and is also not available to natural person employers.

Employers must meet specific conditions to be eligible for the scheme:• The employee must be hired on a

permanent contract or a fixed-term contract lasting more than 12 months;

• The employee's start date must be between 9 June 2015 and 8 June 2016;

• They must not have hired an employee who continued to work beyond the trial period during the previous twelve months.

Latest State-funded employment initiatives


By way of derogation from the third condition, employers are still eligible for the first employee grant scheme if an employment contract with a start date falling between 9 June 2015 and 8 June 2016 was terminated for one of the following reasons: • termination during the trial period, • retirement, • resignation,• dismissal for gross misconduct,• dismissal for wilful misconduct,• termination due to incapacity or death.

The grant cannot be combined with any other State aid intended to assist the same employee to enter or return to work.

This aid is managed by the Agency for Services and Payment with which the French minister in charge of professional training signed an agreement. The payment of this grant shall be suspended if the employer fails to supply the documents necessary to verify the accuracy of his declarations within one month of notification to do so.


Latest State-funded employment initiatives

For once the recent case law of the Conseil d'Etat regarding income tax actually favours the taxpayer.The decision specifically concerns the limits for tax exemption on expatriation allowances. Until now, the French tax authorities' doctrine stipulated that no daily expatriation allowance should exceed the limit of 40% of the daily salary, which required very strict enforcement of the proportionality rule (BOI-RSA-GEO-10-30-10 n° 130 s).

In a decision handed down on 10 April 2015 (CE, 10 April 2015, n°365851), the Conseil d’Etat clearly states that the 40% limit applies to the full salary paid to the employee (excluding the expatriation allowance) throughout the year and not to 40% of the salary paid in respect of periods spent working abroad, as the French tax authorities claimed.

This decision does not however mean that companies can pay expatriation allowances or bonuses to employees transferred abroad as part of an international mobility programme without restrictions as they must comply with the following terms and conditions governing tax exemption on expatriation bonuses, as listed in article L81 A II of the French Tax Code (Code général des impôts).

"I. If the individuals referred to in the first paragraph of section I fail to meet the conditions defined in points 1° and 2° of said section, any additional remuneration paid to them in respect of their transfer to another country shall be exempt from income tax in France provided that it meets the following conditions:

1. It must be paid in consideration for a transfer that is in the direct and exclusive interest of the employer;

2. It must be justified by a transfer requiring the employee to spend at least 24 hours in another country;

3. Its full amount must be determined prior to any such international transfers and calculated, on the one hand, according to the number, length and location of these transfers, and on the other, based on the remuneration paid to employees excluding the additional remuneration referred to in the first paragraph. The amount of additional remuneration may not exceed 40% of the remuneration defined above."

The clarity of this decision is quite unprecedented, especially as it was delivered in the context of litigation proceedings during which the taxpayer lost his case before both the administrative court and, on appeal, the Administrative Court of Appeal (CAA Paris 7-12-2012 n° 11PA05199: RJF 4/13 n° 405).

In spite of this, he was convinced he could have the decision overturned and have his interpretation of article L81 A II of the French Tax Code recognised by a court of law. Consequently, he took his case to the Conseil d’Etat which decided to annul the decisions of the lower courts and to exempt the plaintiff from paying tax on his expatriation bonuses.

Expatriation allowance: amendment to exemption limits


This issue was previously mentioned in an article which appeared in Social security update no. 80, "News on severance payments", published last year (available in French only). It covered the French Constitutional Council's response to an application for a priority preliminary ruling on the issue of constitutionality submitted to it during the course of litigation proceedings between a taxpayer and the French tax authorities concerning the liability to tax of a settlement payment received by the former.

In accordance with the French Constitutional Council's decision, the Conseil d’Etat stated that, subject to the sole condition that the employee was able to provide proof thereof, the amount paid to the employee in settlement, in return for which the employee agreed not to take any legal action seeking the reclassification of his acknowledgement as a dismissal without genuine and proper cause in order to claim damages, as provided for in article L1235-3 of the French Labour Code, must be subject to the same tax regime as the payment provided for in article L1235-3 of the French Labour Code, and should therefore be exempt from income tax.

This decision highlights the importance of the settlement agreement and the way it explains how the dispute arose, the alleged harm and sets out the arguments of both parties in order to obtain:• the correct classification of the amounts

paid: damages or financial compensation;• the reasoning for the payment of

said amounts: compensation for damage related to the litigation or a severance payment.

Depending on the information in the settlement agreement, the legal treatment of the amounts (relating to tax and social security contributions) will vary. To illustrate this point one only has to look at article L80 duodecies of the French Tax Code, which provides that all amounts paid as damages for dismissal without genuine and proper cause are exempt from tax, while providing that severance payments are only exempt from income tax within the limit of the greater of the following two amounts:• the statutory amount of the severance

payment or the amount in the collective bargaining agreement;

• two times the gross annual salary paid to the employee during the calendar year prior to the contract termination, or if this amount is greater, 50% of the full severance payment. However, this limit cannot exceed six times the social security ceiling in force at the payment date (€228,240 in 2015).

Condition for exemption from tax on settlement payments


An employee is entitled to terminate a fixed-term contract ahead of term by invoking article L1243-1 of the French Labour Code if he can prove that his employer has committed a serious breach of contract. In this case, the employee is entitled to receive damages for the harm caused to him by the actions of his employer.

These damages do not have the same legal nature as those provided for by legislation in cases where the employer chooses to terminate a fixed-term contract ahead of term despite there being no authorisation to do so in the contract, the amount of which is equivalent to the salaries that would have been paid to the employee up to the end of the contract (article L1243-4 of the French Labour Code).

This latter amount is subject to tax and consequently cannot be exempt from social security contributions, whereas the damages that the employee is entitled to receive in consideration for the early termination of his contract due to a serious breach of the contract by his employer constitutes a compensation payment and as such is not treated as an item of salary.

This point was recently highlighted by the Court of Cassation in a decision dated 6 May 2015 (Court of Cassation case no. 13-24261 D, 6 May 2015), in which such compensation was treated as damages that do not generate entitlements to paid holidays and for which the employer is not required to provide a payslip. The Court of Appeal's decision was thus set aside and the case will be retried.

The question of whether or not this compensation should be subject to income tax did not come under the jurisdiction of the Court of Cassation and was therefore not addressed. However, as it is the judge's responsibility to classify the amounts paid, decide whether or not they constitute compensation and indicate the applicable legal system, it would only be logical that the Court of Appeal also specify that the amounts paid as damages are non taxable on retrial.

Early termination of a fixed-term contract


Flat-rate pay agreements: industry-wide agreement

In a judgement handed down on 7 July 2015 (Court of Cassation case no. 13-26.444, 7 July 2015), the Court of Cassation declared invalid the individual flat-rate pay agreements (based on a fixed number of working days per year) entered into on the basis of the collective bargaining agreement for hotels, cafés and restaurants on the grounds that the industry-wide agreement did not provide adequate health and safety protection for employees.

To be valid, the industry-wide agreement on which the individual flat-rate pay agreement is based must provide sufficient guarantees that protect employees' health and rest time, including the following:• precise and effective monitoring of

the activity of the employee hired under such an agreement, with a record of the number of days worked and their classification;

• one or several interviews over the course of the year with a particular focus on the employee's workload, the organisation of work in the company, work-life balance and the employee's compensation;

• compliance with working time limits and daily and weekly rest periods.

This is not a new issue however. In two judgements handed down in 2012 and one handed down in 2013, the Court of Cassation held invalid the flat-rate pay agreements entered into on the basis of the collective bargaining agreements for chemical companies, the wholesale sector, engineering and design consultants and other consultancy firms on the grounds that they did not provide the necessary guarantees to safeguard the constitutional requirements concerning employees' health and rest time rights, and that they breached EU law regarding working time limits.

Pending an amendment to these collective bargaining agreements, the individual flat-rate pay agreements entered into on this basis are deemed null and void.

Consequently, the working hours of the employees in question are governed by the statutory regulations regarding working time (i.e., 35 hours per week). If the employees can provide evidence of having worked more than the statutory 35 hours per week, they are entitled to claim additional remuneration corresponding to the overtime. However, this request will be time-barred for all overtime worked prior to the last three years.

In this context, the working time of employees affected by these cancelled agreements needs to be set at a standard 35-hour working week or alternatively, a flat-rate pay agreement should be entered into with the employee, via an amendment to their employment contract and with their approval if required, where permitted under the collective bargaining agreements. It must be emphasised, however, that this amendment would not protect employers from claims for additional remuneration for overtime worked.


The CNIL decides to prohibit the geolocation of employees' vehicles outside of working hours

The simplified standard no. 51 which resulted from decision no. 2006-67 of the French data protection authority (Commission nationale de l'informatique et des libertés – CNIL) of 16 March 2006 has recently been amended by a new decision issued by the CNIL (no. 2015-165 of 4 June 2015). It provides for the adoption of a simplified standard concerning the automatic processing of personal data by public or private bodies to track their employees' vehicles using geolocation technology. In addition to the provisions laid down in the previous decision, the new decision prohibits any tracking of employees' vehicles outside of working hours, including during breaks and the commute to and from work.

Companies and bodies that have filed a simplified declaration based on the previous version of the standard must, if necessary, ensure that their data is processed in compliance with new standard no. 51 within one year, i.e., by 17 June 2016 at the latest.

Downward adjustment of the contribution rate for accidents at work and occupational diseases: full refund

In the event that the contribution rate for accidents at work and occupational diseases (AT/MP) is adjusted downward by the French pensions and occupational risks fund, CARSAT, pursuant to a circular issued by Acoss on 15 June 2015 (no. 2015-25), the employer has three years in which to request a refund from the URSSAF in respect of all of the periods adjusted.

The circular also states that if such an adjustment is made following a decision by the French national health insurance fund (Caisse primaire d'assurances maladie – CPAM) or a court judgement which is now final, the URSSAF must, in any event, refund the full amounts corresponding to the periods subject to the adjusted rate. Under these circumstances, the employer has three years as of the date of notification of the CPAM's decision or of the court judgement in which to request a refund from the URSSAF.

The URSSAF must apply these principles to any request which has not already been covered by one of their decisions (or a court decision) which is now final.

Tax clearance certificates for public contracts

From now on, employers tendering for public contracts must request their tax clearance certificates (attestation de marché public, attestation de vigilance) online. The certificate will be delivered immediately if the online account is up-to-date.The URSSAF has produced a guide on managing these certificates online, which is available (in French only) at the following address:http://www.urssaf.fr/images/ref_2798-GuideEnLigne-ATTESTATIONS_2015.pdf


http://www.urssaf.fr/images/ref_2798-GuideEnLigne-ATTESTATIONS_2015.pdf

http://www.urssaf.fr/images/ref_2798-GuideEnLigne-ATTESTATIONS_2015.pdf

Maternal death: procedure for transferring social security daily allowances to the father now established by decree

The Act of 22 December 2014 amended article L1225-28 of the French Labour Code which provided that, in the event that a mother should die during her maternity leave, the father would have the right to take his wife's remaining post-natal leave and social security daily allowances.

It was henceforth possible to transfer social security daily allowances from a mother to a father (or to a spouse, civil partner or cohabitee), regardless of the cause of the mother's death during her maternity leave (including an accident), and not only if she died in childbirth.

A decree dated 29 June 2015 has finally set out the procedure for applying for the transfer. The beneficiary must submit an application form to the relevant social security institution with supporting documents if required, based on the template set out in the new articles D. 331-5, D. 613-10 and D. 722-15-6 of the French social security code or the new article D. 732-29-1 of the French rural code (Code rural).

AGS contribution rate remains unchanged at 0.30%

The 2 July 2015 Board of Directors' meeting of France's wage guarantee scheme (Association pour la gestion du régime de Garantie des créances des Salariés – AGS) decided to keep the contribution rate at 0.30%.

Classification of unduly paid commission as payroll advances

In a judgement handed down on 23 June 2015, the Court of Cassation came down hard on an employer in relation to the method used for calculating the variable portion of the salary paid to one of his employees.

The calculation method resulted in the employee receiving an overpayment of commission, which the employer tried to offset by making a number of "adjustments" to the employee's gross salary.

However, the Court of Cassation criticised the employer's somewhat casual application of payment procedures, stating that unduly paid commission should be treated as payroll advances and that consequently the employee is protected by article L3251-3 of the French Labour Code which prohibits the employer from withholding payments exceeding one-tenth of an employee's net salary in order to get the money back.The employer is responsible for calculating his employees' salaries and must do so carefully to avoid losing the possibility of recovering overpayments at a later date.

Contribution rate for weather-related unemployment insurance for 2014-2015

In a decree of 29 June 2015, the French government finally set the contribution rate for weather-related unemployment insurance for the period from 1 April 2014 to 31 March 2015. It was set at 1.37% of the salaries to be taken into account, with a reduction of €75,444 for major construction and public works companies affiliated with the construction industry's national paid leave fund (Caisse des congés payés du bâtiment), and at 0.31% for all other companies.

Setting of State aid for professional training contracts

The amount of State aid allocated to finance individual career support for young people aged between 16 and 26 and job seekers aged 45 and over hired under a professional training contract by employer bodies as defined in article D. 6325-23 of the French Labour Code has been increased from €684 to €814 per job seeker on a full-year basis. The amount of this aid was set by a decree of 17 August 2015 and will enter into force as of 1 January 2016.

DSN system: start of phase two

After announcing that phase two of the new mandatory monthly reporting system (including the filing of social security returns via the system) would come into force as of the preparation of payroll data for August 2015 for filing by 5 or 15 September at the latest, the GIP-MDS (public interest organisation that aims to modernise social security returns) amended this date and stated on its website (dsn-info.fr) that companies could continue to use the DSN system in phase 1 for the preparation of September as well as August 2015 payroll data.The adoption of phase two of the DSN system will only become mandatory for the companies concerned as of the preparation of payroll data for October for filing by 5 or 15 November 2015.


This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. PricewaterhouseCoopers France, and/or any member of the PwC network may not be held liable for any decision taken on the basis of the information contained in this publication, or the consequences thereof. © 2014. PricewaterhouseCoopers. All rights reserved.

PwC

63 rue de Villiers92 208 – Neuilly sur Seine CedexTel.: 01 56 57 55 00 | Fax: 01 56 57 57 58

Contact: Philippe Hurez

Amiens

Lille

Rennes

Rouen

Quimper

Metz

Strasbourg

Dijon

Bourg-en-Bresse

Lyon

Grenoble

Nice

PwC in Monaco

MarseilleMontpellier

Pau

Bordeaux

Cognac Limoges

Nantes

Paris

St-Quentin

Poitiers

Toulouse

PwC network of accountants

PwC publishes regular social security policy updates.

This newsletter provides a summary of the regulations in force relating to payroll and employment contracts.

It should therefore only be viewed as a basic reference document. Please contact PwC if you require more detailed information on any particular issues.

You can also visit the "Services aux entrepreneurs" (Services for entrepreneurs) section of our website

www.expert-comptable.pwc.fr

600 employees

lettre actu sociale 1er trimestre 2010 - pwc · 3rd quarter 2015 contents supplementary pension...

Documents