Value sharing: developments since 1 December 2023

In order to better involve employees in the performance of its company, Law No. 2023-1107 of 29 November 2023 improves accessibility to wage savings schemes. The new rules largely concern companies with fewer than 50 employees.

Possibility of paying 2 value-sharing bonuses within the year

The law of 29 November 2023 provides that it is now possible for the employer to pay its employees 2 bonuses value sharing during the same calendar year. This payment shall be made in compliance with the ceilings on exemption from social contributions:

• € 3000 per employee per year;
• € 6000 per employee per year if the employer implements, at the date of payment of the premiums, or has concluded an incentive or participation scheme.

Generalization of value-sharing arrangements

The companies of less than 50 employees with at least 11 employees are encouraged to establish value-sharing arrangements.

Thus, on an experimental basis, these companies, when they make a net tax profit of at least 1% of turnover for three consecutive financial years, will have to from 1^er january 2025 set up a participation plan, a payroll savings plan or pay the value-sharing bonus.

Possibility of negotiating an opt-out

In order to promote the development of participation in companies, the law states that companies with less than 50 employees may now, by means of a participation agreement, implement a participation regime by negotiating, by branch or company agreement, formulae derogating from the legal formula for participation of those companies.

This possibility is accepted experimentally for a period of 5 years.

Sharing of the value in the event of an exceptional increase in profit

The companies of at least 50 employees having the obligation to establish a participation regime, having at least one shop steward and in which there is an agreement to participate or share before june 30, 2024 negotiations on the definition of an exceptional increase in their profit and the arrangements for sharing the value with the employees resulting therefrom.

What does the concept of an exceptional increase in profit cover?

The law specifies that the definition of the exceptional increase in profit takes into account a list of criteria such as:

• the size of the company;
• the sector of activity;
• the occurrence of one or more operations to buy back shares in the company followed by their cancelation, where such operations have not been preceded by allocations to employees;
• profits made in previous years;
• exceptional events outside the company that occurred before the profit was realized.

Creating a company Valuation Sharing Plan

This new scheme allows employees to receive a bonus when the value of their company has increased over 3 years. This premium may not exceed three quarters of the annual amount of social security.

This plan may be implemented in all companies for a period of 3 years.

The amount received by the employee corresponds to a reference amount to which the company's rate of change is applied, when the rate of change is positive.

The reference amount is fixed for each employee pursuant to the agreement establishing the sharing plan for the company's valuation. This amount may differ according to the employee's remuneration, classification level or the duration of work provided for in his employment contract.

Only employees with at least one year of seniority in the company benefit from this plan. Nevertheless, it is possible to provide for a shorter period of service in the agreement.