On Tuesday June 09 Prime Minister Manuel Valls presented a raft of measures aimed at promoting employment in small and medium sized companies. In terms of labor law, the “Small Business Act” includes a ceiling for compensation amounts awarded by the labor courts in cases of redundancies without real or serious cause. It also allows fixed term temporary employment contracts to be renewed twice instead of just once as is the case currently. The government is also bolstering its combat against worker detachment fraud. After testing trade union waters, the government has finally given up on current efforts to reform the employment contract.
The government is putting in place a system of floors and ceilings limiting compensation amounts that labor law can apply in cases of redundancies without real or serious cause. Thus for companies with fewer than 20 employees the compensation amounts will be a maximum of 1/12 of a month pay per month of career length for workers with fewer than two years history. It will be between 2 months (floor) and 6 months (ceiling) up to 14 years of career history. The ceiling for employees with 15 years
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