WHAT'S NEW
Starting May 1, 2025, the employer contribution rate to unemployment insurance will be reduced from 4.05% to 4.00%.
Impact on the bonus-malus system: As of May 1, all currently applicable adjusted rates will be reduced by 0.05%. Thus, the floor and ceiling rates will change to 2.95% and 5.00% respectively.
Companies subject to this system will receive a letter in April 2025 specifying the new applicable rate until August 31, 2025.
THE COURT HAS RULED
Clarifications on the calculation basis for compensation in the event of null dismissal
As a reminder, under Article L 1235-3-1 of the French Labor Code, when a dismissal is ruled null, the judge awards the employee—who does not request reinstatement or for whom reinstatement is impossible—compensation paid by the employer, which cannot be less than six months' salary.
The Labor Code does not clearly define which elements of salary are included in the compensation calculation. In a decision published in the official bulletin, the Court of Cassation clarified that if, during the six-month period, the employee received bonuses or overtime premiums, they must be included in the compensation calculation.
Cass. soc. April 2, 2025, No. 23-20.987
Even if authorized by the administration, the dismissal of a protected employee may be ruled null
While the labor court judge cannot assess the legitimacy of an economic dismissal of a protected employee if authorized by the administration, the Court of Cassation recently clarified that the judge may rule on the employer's misconduct prior to the termination and its consequences for the employee.
Cass. soc. March 26, 2025, No. 23-12.790
Breakup and gross misconduct
Following a romantic breakup, a director persistently demanded explanations from his ex-partner, who was also an employee at the company. The ex-partner, who held a lower hierarchical position, informed the occupational physician, who in turn alerted the employer.
The director was dismissed for gross misconduct and challenged the dismissal, arguing it was based on his personal life. His claim was rejected by both the Court of Appeal and the Court of Cassation.
The Court based its decision on the duty of care that employees must uphold toward themselves and their colleagues. In this case, the judges considered the director's high-ranking position and the ex-partner's lower status, even though they did not work directly together. Gross misconduct was therefore established.
Cass. soc., March 26, 2025, No. 23-17544
Figures
8%
This is the percentage decline in executive recruitment in 2024, with an expected additional decrease of 4% in 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
