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New profit-sharing obligations for companies

Published on : 04/07/2023 04 July Jul 07 2023
Newsletter / Looking Foward

A new « profit-sharing » bill should be discussed and adopted by Parliament this summer. Leading from a National Interprofessional Agreement, it aims to more closely associate workers to their employers’ economic performance including small and mid-size businesses. 

The bill namely includes the following:

- companies with less than 50 employees could decide, on a voluntary basis, to implement branch or company-level profit-sharing schemes which could derogate, including negatively, from the legal profit-sharing calculation formula ;
- from January 1st, 2025, companies employing between 11 and 49 staff will be required to implement a profit-sharing scheme if they are profitable (net profit before tax is equal to at least 1% of sales for three consecutive years). Companies having already implemented a profit-sharing scheme and sole proprietors will be exempt ;
- companies with 50 staff or more and who have one or more trade union delegates will be required to engage in mandatory collective bargaining in case of exceptional profit increase. Namely, companies already subject to the obligation to implement profit-sharing schemes at the date of the publication of the law will be required, by June 30th, 2024, at the latest, to enter into negotiations to define what constitutes an exceptional increase in profits and how it will be shared with employees. 

Employers can already examine their company's existing profit-sharing schemes, as well as any other value-sharing bonus schemes.
 
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