First Employment Contract Law

In 2006, the unemployment rate in France surpassed the 20% mark. France’s high unemployment rates were met by high levels of lawlessness in poor neighborhoods.  The French government aimed to combat this situation by creating legislation that would allow employers to easily dismiss employees with questionable profiles.  As a result, the contract premiere embauche (the First Employment Contract) was passed in France. The contract encouraged the hiring of employees under the age of 26, by offering tax cuts, but also allowed French employers to fire employees without juridical motive within the first two years of employment.

On this date, March 28th, in 2006, the French youth gathered in a “Day of action” against the First Employment Contract.  More than 2 million protestors gathered to fight the law and subsequently disrupted transportation transportation, public education and mail services in the area.

By March 31, the French President ordered a new law to include two additions.  The revised law would include a trial period, which reduced the probation period to one year and mandated a reason for employment termination.  As of April 10, 1006, the First Employment Contract was withdrawn and rewritten by the French Government.