Rupture

A new law designed to “Increase the financing of businesses and the attractiveness of France” came into force on June 15th 2024.

On one hand, this law amends the scope of employees included in the category of “risk-takers” for whom recoverable bonuses (refers to the part of the variable remuneration of risk-takers that can be reduced or refunded) are not taken into account when calculating certain dismissal-related compensation.

Risk-takers are employees considered to have a significant impact on the risk profile of a financial institution in terms of qualitative criteria (e.g. responsibilities) or quantitative criteria (e.g. remuneration).

From now on, will also be included, subject to the specific additional conditions, on the grounds of qualitative criteria: employees exercising management responsibilities in the field of public affairs, the soundness of accounting policies and procedures, the prevention of money laundering and terrorist financing or outsourcing agreements.

On the other hand, compensation for dismissal without real and serious cause granted by the judge is now capped for traders.

Indeed, the remuneration considered to calculate the compensation is capped at one time the annual social security ceiling (i.e. €46,368 in 2024).

This provision is only applicable for dismissals pronounced after publication of the law, as from June 15th 2024.

Although this only concerns compensation awarded by the judge, in the case of dismissal without real and serious cause, it remains an important step forward.