WORK IN PROGRESS
Salary Advances
A draft bill was submitted to the National Assembly on 4 June 2025 to allow employees to request up to five salary advances per month. The total amount of these advances may not exceed half of the employee's monthly pay, and no justification for the request would be required.
Unemployment Insurance Contribution
An amendment agreement concluded on 27 May 2025 aims to adjust the bonus-malus system applied to the employer's unemployment insurance contribution. It would exclude certain contract terminations from the malus calculation, as they are considered beyond the employer's control, notably:
- the end of seasonal contracts,
- dismissals for non-occupational incapacity,
- dismissals for serious or gross misconduct.
Additionally, only contracts shorter than three months would be included in the adjustment, and the sectoral framework would be refined to allow a more accurate comparison of separation rates between economic sectors.
Consultations on pensions
After two weeks of discussion, the social partners met on 5 June to draw up a joint document. Progress appears possible on issues such as women's pensions, governance, capitalisation, and arduous work, but no agreement has yet been reached on retirement age or the scheme's financing.
International Mobility
Social Security Coordination – Determination of Applicable Legislation
Workers active in multiple EU Member States are subject to the social security legislation of their country of residence if at least 25% of their activity (in terms of time and pay) takes place there. Otherwise, the legislation of the employer's head office applies.
Faced with a preliminary question, the CJEU (Court of Justice of the European Union) must now determine whether work carried out outside the EU should be included in this calculation. In his opinion of 5 June 2025, the counsel for the prosecution recommended that such activities should be taken into account. If the Court follows this view, employees concerned could more easily remain under the legislation of their employer's country, since meeting the 25% threshold in their country of residence would become more difficult.
THE COURT HAS RULED
Continuation of Provident Scheme Benefits
In this case, an employee initially on sick leave was subsequently declared to be in a state of invalidity. She was covered by a group insurance plan taken out by her employer. The insurer paid benefits during her sick leave, which occurred during the portability period, but refused to cover the invalidity on the grounds that it arose after the insurance period, and thus the portability period had ended.
The Court of Cassation reaffirmed that the termination or expiry of an insurance contract does not prevent the payment of benefits—whether immediate or deferred—that were acquired or originated during the term of the contract.
In this judgment, the Court clarified for the first time that:
"Article L. 911-8 of the Social Security Code must be interpreted to mean that the end of the portability period has no effect on the payment of benefits—whether immediate or deferred—that were acquired or originated during the employment relationship or during the portability period of the cover."
Cass. 2nd Civ. Chamber, 28 May 2025, No. 23-13.796
€21.9 billion
According to the Social Security Accounts Commission, the deficit of the basic social security scheme and the Old-Age Solidarity Fund could reach this figure in 2025—a 43.14% increase.
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