The Shifting Sands of Paid Leave: Navigating the New Landscape of French Employment Law
The year 2024 marked a significant turning point in French employment law, particularly regarding the acquisition of paid leave during periods of illness or work-related accidents. A new law, designed to align the French Labor Code with European Union directives, fundamentally altered the way employees accrue vacation time while on sick leave, regardless of the duration of their absence. This change has far-reaching implications for both employers and employees, requiring a careful re-evaluation of established practices and a thorough understanding of the revised legal framework.
Previously, the accrual of paid leave during sick leave was often limited or non-existent, creating a disparity between employees who were actively working and those who were temporarily unable to do so due to illness or injury. This disparity was seen as incompatible with the principles of EU law, which emphasizes the right to paid annual leave as a fundamental aspect of worker protection.
The new legislation addresses this issue by stipulating that all periods of sick leave, whether due to non-occupational illness, occupational illness, or work-related accidents, are now considered equivalent to periods of actual work for the purpose of accruing paid leave. However, the accrual rates differ depending on the nature of the illness or accident.
For non-occupational illnesses, employees now accrue two working days of paid leave for each month of absence. This provision ensures that employees who are temporarily unable to work due to common illnesses, such as colds, flu, or other non-work-related ailments, continue to accrue vacation time.
For occupational illnesses and work-related accidents, the accrual rate is even more generous, with employees accruing 2.5 working days of paid leave per month of absence. Crucially, there is no limit on the duration for which this accrual applies. This provision recognizes the potentially long-term nature of occupational illnesses and work-related injuries, ensuring that employees who are unable to work for extended periods due to these circumstances continue to accumulate paid leave.
Prior to this legislative change, some collective bargaining agreements already included provisions for the accrual of paid leave during sick leave. However, these provisions often had limitations on the duration of the accrual, or the amount of leave that could be accumulated. The new law provides a standardized and more comprehensive framework, ensuring a minimum level of protection for all employees, regardless of their specific collective bargaining agreement.
One of the most significant aspects of this legal reform is its retroactive application. Employees currently employed have the right to request a review of their sick leave records dating back to 2009, allowing them to claim any paid leave they were entitled to but did not receive under the previous regulations. This retroactive claim period extends until April 2026, providing employees with a limited window of opportunity to rectify past discrepancies.
However, there is a limit on the total amount of paid leave that can be accrued in any given year, even with the retroactive application of the new law. Employees cannot accrue more than 24 days of paid leave per year, including leave earned through both actual work and sick leave. This cap is designed to prevent excessive accumulation of leave and to ensure that employees take regular breaks from work to maintain their well-being.
The Cour de Cassation, France’s highest court of appeal, has further clarified the application of the new law, particularly in relation to occupational illnesses and work-related accidents. In a landmark ruling on September 13, 2023, the court affirmed that employees are entitled to the regularization of their paid leave accrual for these types of absences, based on both the court’s own jurisprudence and the principles of EU law. This ruling reinforces the importance of ensuring that employees who suffer occupational illnesses or work-related accidents are fully compensated for their time off work.
The implementation of this new law has presented challenges for payroll software providers, who have had to adapt their systems to accurately calculate paid leave accrual during sick leave. While most payroll software is now capable of correctly calculating the accrual of leave during periods of absence, employers still need to exercise caution and carefully review the calculations to ensure accuracy. In particular, there have been instances of errors in the calculation of the corresponding provision for paid leave, which requires close monitoring.
Beyond the technical aspects of payroll processing, employers also need to consider the practical implications of the new law on their workforce. When an employee returns to work after a period of sick leave, employers need to assess, on a case-by-case basis, whether the employee is able to take their accrued paid leave before the usual deadline, or whether they should benefit from the 15-month carryover period provided for by law. This assessment should take into account the duration and dates of the employee’s absence, as well as their current workload and the demands of their job.
Employers are now legally obligated to inform employees, within one month of their return to work, of the number of paid leave days they have accrued and the deadline for taking that leave. This information is typically provided on the employee’s payslip. However, in practice, it may not always be feasible to provide this information for every single instance of sick leave. Employers need to use their judgment and consult with advisors to determine when it is most appropriate to provide this information to employees.
The tracking of paid leave balances, with their various deadlines and carryover rules, has become increasingly complex. Employers need to pay particular attention to the tracking of carryover periods for employees who are on long-term sick leave, to ensure that they do not lose any accrued leave. To mitigate the risk of excessive accumulation of leave, the law includes a provision that allows employers to forfeit any accrued leave if the employee’s contract has been suspended for at least one year at the end of the accrual period, and the employee has not returned to work within 15 months of that period. This provision means that, potentially as early as August 2025, employers will need to begin removing forfeited leave from employee payslips.
In conclusion, the new French law on paid leave represents a significant shift in the legal landscape, providing greater protection and benefits for employees who are unable to work due to illness or injury. While the implementation of this law has presented challenges for employers, it also offers an opportunity to create a more equitable and supportive work environment. By understanding the intricacies of the new regulations and adapting their practices accordingly, employers can ensure compliance and foster a positive relationship with their employees. The key lies in careful monitoring, accurate calculations, and proactive communication to ensure that employees are fully informed of their rights and entitlements. The evolving legal framework necessitates continuous learning and adaptation to navigate the shifting sands of paid leave management effectively.
