In today's globalized world, the mobility of high-level professionals across borders is common.
However, this brings unique challenges, particularly when it comes to adapting employment contracts to comply with the legal frameworks of the host country. Recently, we assisted a client in adapting her English employment contract to French law as she relocated to France and sought an EU Blue Card. This case study highlights the key points of this process and offers insights into the intricacies involved in such transitions.
1. Working Hours Management
In the UK, the client worked 37.5 hours per week with flexible hours. In France, the standard working week is 35 hours. To address this discrepancy, we proposed a «forfait jours» clause, applicable to high-level executives (cadres dirigeants). This arrangement allows for an annualized working time of 218 days instead of weekly hours, providing flexibility and compliance with French labor laws. We also informed the client about mandatory annual reviews and the importance of managing rest periods to avoid burnout and ensure compliance.
2. Annual Bonus and Holiday Pay
The client received an annual bonus under her UK contract. In France, such bonuses might be considered as a «prime de vacances,» especially under the Syntec collective agreement, which mandates a holiday bonus. We analyzed the terms of the bonus to ensure it met French requirements and advised on any necessary adjustments to classify it correctly under French law.
3. Teleworking Agreement
Given that the client continued to work from home for a UK branch, we recommended establishing a formal teleworking agreement. This is crucial in France, where telework is highly regulated. The agreement included specifics on working conditions, equipment provisions, and reimbursement of related expenses, ensuring compliance with French regulations and protecting both the employer and the employee.
4. Impact on Social Contributions
One of the significant differences between the UK and French employment systems is the level of social contributions. France has higher social security contributions, affecting both the employer and the employee. We provided a detailed comparison of these contributions and advised on potential financial implications, helping the client understand the increased deductions and ensuring her salary package was adjusted accordingly to maintain her net income level.
5. Non-Compete Clause
The original UK contract included a non-compete clause that was neither remunerated nor time and space-limited. Under French law, for a non-compete clause to be enforceable, it must be compensated, and its duration and geographical scope must be reasonable. We revised this clause to comply with French standards, ensuring it was enforceable and fair.
6. Paid Leave and Rest Days Management
Lastly, the transition to a «forfait jours» arrangement necessitated careful management of paid leave and rest days. In France, employees on a «forfait jours» plan are entitled to additional rest days (RTT) to compensate for longer working hours. We provided guidance on tracking these days accurately and ensuring the client’s entitlements were clear and properly documented.
Conclusion
This case highlights the complexities involved in transposing an employment contract from one legal jurisdiction to another, particularly within the context of global mobility. Each aspect, from working hours to social contributions and contractual clauses, requires careful consideration and adjustment to comply with local laws. Our experience underscores the importance of thorough legal review and proactive adaptation to ensure a seamless transition and compliance with the host country’s labor regulations.
For professionals and employers navigating similar transitions, it is crucial to seek specialized legal advice to address these multifaceted challenges effectively. This ensures not only legal compliance but also the smooth continuation of employment terms that meet both the employee’s and employer’s expectations.
