Fpromoting a better sharing of added value in companies with less than 50 employees is an urgent necessity to avoid a two-tiered wage system in which on the one hand the employees of large companies, better paid and already benefiting from employee savings, and on the other the employees of very small enterprises (VSE) and small and medium-sized enterprises that have too little access to these tools.
Regarding participation, the numbers are clear: according to the Department of Labor’s Direction of Animation of Research, Studies and Statistics (Dares), in 2020 2.5% of employees will be in companies with fewer than 10 employees in benefit, while in companies with 10 to 49 employees it is 5.6% and in companies with more than 1,000 employees it is 70%.
The explanatory memorandum to the bill stated the ambition to enable all employees to benefit from at least one value sharing scheme. The reading of the bill on November 29, 2023 will extinguish that hope. Companies (which exclude sole proprietorships) that have 11 to 49 employees will need to implement a participation scheme or a profit sharing scheme or an employee savings plan or a value sharing bonus.
This obligation is conditional upon the achievement of a net tax profit of at least 1% of turnover for three consecutive accounting years. The Achilles heel of the reform is that companies cannot pay their employees anything because the law does not set any minimum.
Protection and simplicity
By comparison, a company that has exceeded fifty employees for five consecutive calendar years has two different obligations.
The first requires him to establish a system of participation.
The second requires payment of the participation if its profit exceeds 5% of the equity capital, the amount of which is at least equal to the law specified in the formula.
The first is an obligation to do, the second is an obligation to pay a certain amount of money.
The Value Sharing Act of November 29, 2023 has limited ambition as it obligates but not obligates companies with 11 to 49 employees to pay a certain amount.
In the future, it would be desirable for the legislator to reconsider the profession in order to refine the formula for calculating the specific participation for companies with less than 50 employees. It must provide employee protection and simplicity. For companies with at least 50 employees, this would be conditional on achieving a profit so as not to undermine the sustainability of the companies.
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