Session 4 Workers Part
Session 4 Workers Part
Regardless of the country (and therefore the applicable law), there are
some common issues addressed in an employment contract
Common employment contract issues
X = a Working Person
Y = the person for whom the Working Person is working (the Employer)
5
Today’s Session 4 looks at the start of the relationship
between an Employer and a Working Person
6
1. Categories of Working Person
• Directors
• Employees
• Other ‘workers’
• “Uber drivers” — the gig economy
• Agents
• Independent contractors (consultants)
• Volunteers
The categories and the law
Then the law defines rights and duties for the Working Person and the
Employer depending on which category they’re in
How much control does Employer have over Working Person? This is a
question of FACT as well as law.
11
App-hailed drivers elsewhere
UK: In 2023, the Supreme Court confirmed that app-hailed drivers are NOT
employees in the UK. This might be appealed to the European Court of Human
Rights (in Strasbourg).
France: In 2022, the Labor Chamber of the Cour de Cassation confirmed that the
contract between Uber and its drivers should be analyzed as an employment
contract. For practical purposes, this is saying that app-hailed drivers are
employees for at least certain purposes under the law. In response, the Labor
Minister stated her intention to set up a task force to examine the possibility of
creating a special third status, neither employee nor independent contractor, for
ride-hailed app drivers.
12
The categories and the law
…the legal relationship is important
• Day to day control of employees and (more limited) agents but not of
• pure consultants ……
• …. or distributors (of goods) and other third party contractors (see later session)
• Employers ‘vicariously’ liable for acts of employees when working
• Principals liable for acts of agents within scope of agency and bound by contracts entered into by them
Other terms may be implied either by statute law or by common law (or custom or usage)
• these can usually be contracted out of — but only expressly
….during the employment
How to manage the employment relationship
• Not employees
• But not quite wholly independent – they only have a relationship with the business
• applies to individuals who do not have a formal employment contract
• e.g. Uber drivers when they are using the Uber app
‘Workers’ rights are mainly set out in EU law: the ‘lowest common denominator’ level
Status of individual:
• do they have automatic right to work where you want them to? EU vs non-EU
• if not, will need immigration clearance and (probably) a work permit — as will family
Compensation
• A looser relationship than agency, a tighter one than simply being a supplier
Often used where a bit of kit is made for you — e.g. Apple’s iPhones
… or where ancillary support services can be ‘contracted out’ — e.g. payroll management, cleaning
• KPIs — + penalties?
• IPR ownership
18
Commercial agents
…. instant salesforce
Commission paid sales force (% of sales) — can look like part of your business
• not employees
• may be individuals or companies
Contrast agents and distributors: agents sell for the principal, distributors sell for themselves
• Hiring priorities
Handicapped
Pregnancy leave
Layoffs
• Hiring incentives
Development zone incentives
General social charge reduction
New innovative enterprises
Youth hiring subsidy
Long-term unemployment
• Discrimination & Unfair trade
Criminal penalty
Noncompetition clause
• Clandestine employment
Foreign Employees
• Residence permits
• Standard work Authorization procedure
• Enforcement Measures ans Equality of treatment
• Foreign Buisness Permit
• Employment contracts in France can be divided in two main categories:
CDI - contracts of indeterminate periode of time duration
CDD - contract of determinate periode of time
• Precisions
Contracts of employment are generally for an indefinite term
Specific agreements for short limited term employment are tightly regulated
– For example it is possible to offer a limited term agreement to a person
replacing another employee on maternity leave
– For instance to employees taken on for a particular seasonal sales
period
• Some specific contracts have been designed for particular professions, age groups
to try and encourage employment in demographic groups with specific problems
• There are apprentice-style contracts aimed at young people
It is necessary in France to provide a written contract of employment to all staff of
whatever grade or level
• An employee resident in France, of whatever nationality, must generally have a
written service agreement or contract of employment
• In the event that there is no written agreement, then a contract of employment is
nevertheless held to exist and the employee will systematically benefit from the
maximum protection provided for by the law
• The contract of employment must be in French, even where both employer and
employee use the same language which is not French
The agreement in question must be drafted in the French language, but there is
no restriction on a translation thereof being made available although the French
version will always prevail.
• There is no restriction on providing a translation or a bilingual version of the
agreement to the employee
• The French version will always prevail before the Courts
• The French version will always prevail vis-à-vis the French Employment
Inspection Authorities
• Types of contract
Term and temporary contracts
• Fixed term Contracts
• Temporary Workers
• Part-time Contracts
Indeterminate term contracts
• Employee vs. Company agent
• Form for inderminate term employment contract
• Trial period
• Noncompetition clause
Salary
• Base salary & Contractual benefits
• Setting Salary
• Payment of Salary
Amending the contract
• Substantial Modifications
• Transfer
• Changes in the legal Status of the Employer
Employment Status of Directors (members of the board)
A Director of a French Company is not generally held to be an employee in that
particular capacity, instead he or she is held to be solely an officer of the company
However, a 'Director' being an individual appointed to the Board of the Company
by the shareholders would normally be translated as an 'Administrateur'
An 'Administrateur' is solely an officer of the company (in French a 'mandataire
social') then he or she does not have a contract of employment with the Company
and thus does not benefit from the extremely protective provisions (for the
employee) of French Employment Law
An 'Administrateur' can generally be dismissed from his or her position without
notice or compensation, although the method of dismissal should not be vexatious
Employment Status of Directors (members of the board)
In many cases, an 'Administrateur' or Director of a French company
might also have a contract of employment, but this would be
considered under French Law to be totally separate from his or her
role as an officer of the company
Such a contract of employment would relate to a specific function
without the role of 'Director' and might for example be in his or her
capacity as Financial Manager, Sales Manager or H.R. Manager, and
this agreement would give the employee the full protection of French
Employment Law provisions
EU legal framework for protection
General Principles of EU law (GPUE)
• Employers’ organisations:
• BusinessEurope (previously, Union of Industries of the European
Community - UNICE) for private sector.
• European Centre of Employers and Enterprises providing Public
services (CEEP) for pubic sector.
• Workers’ organisations:
• European Trade Union Confederation (ETUC).
• European Confederation of Independent Trade Unions (CESI).
Collective disputes: right to strike
• Amount of remuneration
• Working time
• Dismissal/disciplinary proceedings
72
Time for a case study!
But first, remember that your first reflection is due this
Sunday.
Draw on your personal experiences, showing how the exploration of
concepts addressed in the first half of the course has helped you better
understand what you did or observed in the past.
It’s not useful for you to simply restate what you learned or found
interesting—you need to apply what you learned or found interesting to real
experiences from your life.
All else being equal, you’ll get more points if you put more time into it, delve
more deeply, touch on more subjects, and/or make it more personal.
73