In a context where the unemployment rate is at its lowest level in 40 years, the government is seeking to go further to respond more adequately to urgent questions concerning the meaning of work and its fair recognition.
It is with this in mind that the bill transposing the national interprofessional agreement on value sharing was presented and widely adopted (112 votes in favour and 27 against) at the end of June in the National Assembly, as part of an accelerated procedure. This agreement was signed last February by representatives of employers and employees. The bill will be examined by the Senate in the coming days before it is finally adopted. This law aims to encourage a better distribution of profits between the various stakeholders of a company.
Among the main measures introduced by this law are:
The PPV can now be allocated to an employee savings plan or a retirement savings plan, with a possible contribution from the employer. In addition, two new early unlocking cases have been introduced: lExpenditure related to the energy transition and expenses related to the family caregiver activity.
For companies with less than 50 employees, the new law offers greater flexibility. They now have the opportunity to experiment with a participation regime for 5 years with a calculation formula that may be less favorable than the legal formula. In other words, these companies can choose to set up either an incentive scheme, or a participation plan, or a value-sharing bonus, or an employee savings plan, or even a tailor-made combination of these various schemes. This obligation applies to all companies, including those in the social and solidarity economy sector, that have achieved a net tax profit of more than 1% for three consecutive years, with the exception of public limited companies with worker participation.
Companies with more than 50 employees, which have union representatives, will now be required toengage in a specific negotiation on exceptional profits when they initiate a negotiation on a participation or profit-sharing arrangement. These exceptional benefits may lead to an increase in profit-sharing or participation, or even to the establishment of a new value-sharing mechanism.
The bill does not provide a precise definition of what these exceptional benefits are. They must be defined during collective bargaining with the social partners. However, the law indicates that certain criteria must be taken into account, such as the size of the company, the sector of activity, the profits made in previous years or exceptional events external to the company that occurred before the profit was made.
The terms of payment of the value-sharing bonus will be modified in order to promote its deployment. This bonus can now be paid in two installments and can be placed on an employee savings plan.. With a maximum of 3,000 or 6,000 euros (depending on the situation of the company) exempt from charges.
This system allows the payment of a bonus, exempt from charges, based on an increase in the value of the company over a period of three years. It is an innovative initiative that aims to reward employees according to the growth of the company. In other words, If the company prospers and increases its value during this three-year period, employees will receive a corresponding bonuse. This creates a direct link between company performance and employee rewards, thus strengthening their motivation and commitment.
However, it is important to note that implementing this arrangement can present challenges. Indeed, it requires a precise and objective assessment of the change in the value of the company over a period of three years. This may require specific assessment skills and tools, as well as transparency and clear communication with employees about how the value of the business is assessed and how that translates into a bonus for them.
These new measures aim to encourage a better distribution of profits between the various stakeholders in a company. Indeed, sharing value is a practice that benefits both businesses and their employees.
In 2020, value-sharing schemes provided an average additional remuneration of 2,440 euros to French employees, for a total amount of 18.6 billion euros.
Since that date, value sharing has continued to progress, with the implementation of the value-sharing bonus, which benefited 5.5 million employees in 2022, for a total amount of 4.4 billion euros (790 euros on average per employee).
The adoption of this law marks an important step towards a better distribution of benefits between the various stakeholders of a company. It highlights the importance of sharing value for shared performance and better recognition of the work of employees.
Sources:
“Adoption of the bill on value sharing by the National Assembly - Louise Peugny” https://www.linkedin.com/pulse/adoption-du-projet-de-loi-sur-le-partage-la-valeur-par-louise-peugny/
“Value sharing bonus: what should change?” DAF Mag https://www.daf-mag.fr/Thematique/reglementation-1243/droit-social-2200/Breves/Prime-de-partage-de-valeur-qu-est-ce-qui-devrait-383872.htm
