Legal Insights

In the context of the coronavirus health crisis, an emergency health law to deal with the covid-19 pandemic (the “Law”) was definitively voted on Sunday March 22, 2020 and published in the Official Gazette on March 24, 2020.

The Law empowers the Government to amend, by means of Ordinances and within 3 months from its publication, any measures in order to deal with the economic, financial and labor-related consequences of the spread of the pandemic, in particular with regard to labor law and social security.

The Law indeed includes a whole set of measures that are aimed at adapting labor law and that are of direct interest to employers.

For several days now, the French have been observing a strict confinement following presidential and governmental instructions to stem the spread of the Covid-19 virus. There are many concerns and uncertainties remaining as to the outcome of this international crisis.

What is the impact of this situation on the French judicial life? Here is an update on the measures taken and envisaged with regard to civil proceedings.

On March 16, 2020, French President Emmanuel Macron decided to take exceptional measures to deal with the global Covid-19 pandemic that is spreading across France.

In this exceptional health context, what are the measures taken by the Government? What is the legal framework for such measures? What penalties for those who do not comply with the new rules?

Partial activity (also referred to as short-time work) allows the employer to reduce the working time of his employees or to temporarily close his establishment or part of it in order to maintain employment, and to compensate in part for the loss of remuneration suffered by employees as a result of the unworked hours. Because of the economic consequences associated with the spread of the Covid-19 pandemic, a draft Decree encourages and facilitates the use of the partial activity scheme.

Soulier Avocats provides an update on the latest measures in the form of a Q/A.

While French households are beginning to organize themselves, French companies are seeking to protect themselves against the devastating financial effects of Covid-19. Partial unemployment mechanism, deferment of the payment of social security contributions and taxes, temporary easing of the burdens on companies, injection of external liquidity, etc. A growing number of measures are being taken to protect and support companies during this highly critical period.

To take into account the impact of the covid-19 pandemic on economic activity, the URSSAF network introduced on March 16, 2020 a measure allowing employers to defer the payment of their social security contributions for a period of up to three months.