2024-03-14 06:24:19
The Council of State issued an opinion on Wednesday on the acquisition of paid sick leave. The highest administrative court notably limits the retroactivity of the measure to three years. The calculation of compensation will be based on 4 weeks per year and not 5.
The situation is unblocked on a file which has given employers a cold sweat. On Wednesday March 13, the Council of State issued an opinion on the revision of the Labor Code regarding the acquisition of leave during periods of sick leave. An opinion which goes more in the direction of employers and which will allow the government to legislate by amendments.
In September 2023, the Court of Cassation ordered the executive to bring labor law into compliance with European law regarding paid leave. However, a 2003 EU directive provides that employees can acquire sick leave. The employers’ main fear was to see employees demand vacation pay for sick leave taken in recent years. Retroactivity which would have cost several billion euros per year, according to business leaders.
In its opinion, the Council of State limits the damage by explaining that retroactivity will be limited to a maximum of three years. More precisely, only employees who left their company less than three years before the promulgation of the law will be able to claim paid vacation compensation for their period of sick leave. For current employees, it will be “only” two years.
Compensation calculated on the basis of 4 weeks
This will still represent a cost for employers. In November, employers feared having to pay six billion euros in arrears if retroactivity of three years was granted to the employees concerned. However, we are moving away from the worst-case scenario: according to certain lawyers, the measure risked being retroactive over 14 years.
The Council of State further indicates that this paid leave will be granted for a maximum of 15 months. Finally, compensation will be calculated on the basis of 4 weeks per year and not 5, as provided for by French law, which is more advantageous than European legislation.
The CPME, which has been fighting for months to win its case on this issue, says it is relieved. The opinion of the Council of State will allow employers to know what to expect and to limit the bill. As a reminder, without these safeguards, employers’ organizations feared a bill of 2.5 billion euros per year.
Caroline Morisseau with Paul Louis
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