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					Compandben SA                                                                                France and UK




                                         Market Conditions Summary - FRANCE
                            LAW                                                        MARKET PRACTICE



                                                                                       3 months probation for the majority of permanent posts.
                                                                                       Convention collectives often provide for 2 months for "maitrise"
Recruitment and             No express limit for a probationery period by law but it   staff 3 months for cadres and up to 6 months for cadres
Contract                    must not be excessive.                                     superieur.
                            It can be prolonged: e.g 3 months then another 3           convention collective permits extension only if both parties
Probationary Period         months if the convention collective permits.               agree unless specified in contract.
Probationary Period         1 month for non management staff and 3 month for
Extension                   "Cadres"
                                                                                       As per convention collective the notice period is usually 1 month
                                                                                       for non management staff, 2 months for "maitrise" staff and 3
Notice Period                                                                          months for "Cadres"
Notice Period 2
Notice Period 3
                            probationary period limited to max one month.
                            Contracts cannot be renewed and have a maximum
Notice Period 4             duration of more than 18 months                         See comments in the separate guide issued.
                            The employment contract need not be written but there
                            must a possibility for an employee to find out his pay,
                            job description,length of vacation, working hours.The
Fixed Term Contract         contract if written has to be in French.                normally contracts written
                            65 with option to retire at 60 if employee has 39.25
Retirement Age              years of contributions.

Employment Conditions
                                                                                       In many companies the reduction of the weekly working time has
                                                                                       been accompanied by an accord whereby employees continue
                                                                                       to work the same hours but are compensated for the hours,
                            35 hours by 2002 for employers with fewer than 20          either as vacation or the extra hours are put into a fund.These
                            employees is still technically required but                days , called RTT can lead to a theoretical vacation benefit of 47
Working Hours               implementation has been put on hold.                       days !

                                                                                       As law: some employers grant extra days of vacation based on
                                                                                       length of service.Convention collective for the garage industry
                            25 days per year is legally required and a grant of extra shows 1 extra day for 20 years service and another for 25
                            days of vacation if vacation taken in the winter Oct 31 to years.Extra days granted to offset extra hours worked are
                            April 30 up to 2 extra days if 6 or more days of vacation typically able to be taken at any time but are not cumulable with
Vacation                    are taken in winter period.                                normal vacation.Illness on vacation not normally recognised.
Special Leave                                                                          convention collective
Birth of Child              3 days                                                     3 days
Death of Spouse or child    2 days                                                     4 days
Death of Father or Mother   1 day                                                      2 days
Marriage                    4 days                                                     4 days
Marriage of a child         1 day                                                      1 day




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Compandben SA                                                                               France and UK




                                       Market Conditions Summary - FRANCE
                           LAW                                                        MARKET PRACTICE


others                     as per company decision
                           All Saints 1/11 Ascension/Bastille Day 14/7 Christmas
                           25/12 Easter Monday/Labour Day/New Years
                           Day/Remembrance Day/WW2 Victory Day 8/5
                           Pentecost/Whit Monday/Plus days given in May termed
Public Holidays            Chiracs day                                           Good Friday sometimes accorded.
Maternity leave
                           Conge parentale is permitted for one year after birth of
                           a child, renewable for two years.Either the employee       part time working option nis usually preferred. Employees can
Paternity and Parental     has 100% holiday or part time working at 60%/80% of        choose the % of time but employer can choose how the week is
Leave                      salary                                                     organised
                                                                                      employees normally have a right to unpaid leave in their
Unpaid leave                                                                          convention collective.

Remuneration
Bonus
                           14 months salary common and at least 13 months
Months of salary payment   usually paid                                               13 is the most frequent number of months

Social Coverage
Payment of salary after    no payment for sickness required until the employee
accident or sickness       has a years service
Life insurance             no legal requirement                                       2- 3 years salary coverage
Military Service           statutory military service recently abolished              statutory military service recently abolished

                           Highly developed system of social security with a high
                           charge of about 20% of salary for employees and 45 -
                           49% for employers.This drops at higher salary levels
                           through operation of "caps" or maxima on the payments
Social Insurance
                                                                                      100% of companies contribute to state pension and vast
                                                                                      majority do not supplement it The pension funds are industry
Early retirement                                                                      based
Pension                                                                               final salary scheme .
Principle of the pension
arrangements                                                                          as detailed in sample of payroll charges
Contributions                                                                         as detailed in sample of payroll charges
Accident Insurance                                                                    as detailed in sample of payroll charges
Health Insurance                                                                      none
Long Term Care Insurance                                                              as detailed in sample of payroll charges
Disability Insurance                                                                  as detailed in sample of payroll charges
Child Allowance




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Compandben SA                                                                              France and UK




                                       Market Conditions Summary - FRANCE
                           LAW                                                       MARKET PRACTICE


SOCIAL INSURANCES                                                                    as detailed in sample of payroll charges
Professional and non-
professional accident
insurance                                                                            included in mandatory fund
Loss of earnings insurance
for sickness                                                                         included in mandatory fund
Health Insurance           See sample charges spreadsheet

Indemnities
                                                                                     At least a half month per year of service is market
                           Law prescribes only 1/10 of a months salary per year of   practice.Normally severance payments tax free to the maximum
                           service. However the tems of the convention collective    indicated in the convention collective. "Indemnites de retraite"
                           which covers the industy will normally be taken as the    are also found in some convention collectives again based on
Termination Indemnities    reference in any dispute.                                 length of service.




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