[author: Capstan Avocats]
The French government made a series of announcements on 15 July 2025 aimed at reducing the country's national debt. In this short update, we take a look at the proposed measures that employers should have on their radar.
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The key measures announced
The key measures announced that would affect employment and labour relations include the following:
- A proposal to eliminate two public holidays for everyone, with no option to opt out. These include Easter Monday which, according to Prime Minister François Bayrou, has no religious significance, and Victory in Europe Day on 8 May (the official acceptance by the Allies of the unconditional surrender of the German armed forces in World War II).
- A proposal for national industry-wide negotiations on labour law “to improve working conditions for all, facilitate recruitment and increase the amount of work where possible.”
- A change in the financing of the social security system, which currently relies mainly on income from work.
The Minister of Labour also confirmed an upcoming reform of unemployment insurance benefits and criticised the abuse of mutual termination arrangements which, in the government’s view, often come in lieu of resignations.
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Takeaway for employers
While the French government has announced sweeping proposals to reduce national debt, including cutting public holidays and reforming labour laws, it is important to stress that, at the moment, they are just announcements. Their implementation remains uncertain and the next steps will involve national discussions and negotiations with trade unions and employer representatives. Parliamentary negotiations may then follow, but only at a later stage.
It is nevertheless useful for employers to have these potential changes on their radar as they would certainly require significant changes to workplace policies and procedures if passed.
