Employer obligations for paid leave management

Published on
October 26, 2023
Employer obligations for paid leave management

Defining clear company policies on paid leave

Every company must set clear rules for paid leave and communicate them to employees well in advance. This policy should include:

  • how to submit leave requests
  • deadlines for requests and responses
  • priority criteria
  • the official leave period

Defining the leave period

The official leave period is usually determined through a company agreement. If no such agreement exists, the employer must follow the relevant sector’s collective agreement.

Employers can choose the leave period, but the employee representatives must validate it beforehand. Depending on operational needs, this period can cover the entire year or specific months with lower or higher workload. However, employers must respect the legal leave period from May 1 to October 31.

Legal leave duration

Under French law, employees are entitled to five weeks of paid leave per year, equivalent to 30 working days for a full year of work. This applies to all employees, regardless of their contract type (permanent, fixed-term, or temporary), working hours (full-time or part-time), or seniority.

Leave is calculated based on the company’s reference period, or by default, from June 1 of the previous year to May 31 of the current year. During this period, employees must take at least 12 consecutive days and no more than 24 working days at once. The remaining leave days can be used separately, subject to employer approval.

Calculating paid leave allowances

Paid leave allowances correspond to 10% of the employee’s gross salary over the reference period.

Employers must choose between two calculation methods, always applying the one most favourable to the employee:

  • full salary payment during the leave period
  • 1/10 of the gross salary earned during the reference period

The allowance calculation considers actual hours worked each month or the average number of working days. Employers must also include any relevant bonuses except year-end bonuses, profit-sharing, or expense reimbursements. For temporary or fixed-term contracts, leave allowances are paid at the end of the contract.

Failure to comply can lead to fines of up to €7,500 per affected employee.

Legal obligations for rest periods

Employers must also follow rules regarding employee rest periods:

  • no more than 10 consecutive hours of work per day
  • no more than 48 working hours per week
  • at least 35 consecutive hours of weekly rest
  • no more than 6 working days per week

Work schedules and leave records must be submitted to the labour inspectorate, which ensures these rules are upheld.

Leave validation deadlines

When employees submit a leave request, they expect a timely response to organise their plans.

Employers must inform employees about the official leave period at least two months in advance and communicate the leave order at least one month before the first departures.

There is no fixed legal deadline for approving leave requests, but if the employer fails to respond within a reasonable period, the leave is considered approved. Employees can take the planned leave without facing disciplinary action, provided they can prove they submitted the request and received no response.

Employer rights to refuse leave requests

Employers can refuse leave requests under specific conditions, such as:

  • ensuring business continuity
  • managing high workload periods
  • exceptional circumstances

Refusals must be justified and cannot be arbitrary.

For family-related events (birth, marriage, death of a relative), employers cannot refuse leave requests. In these cases, employees must provide supporting documents, such as marriage certificates or death notices.

Using HR software to manage paid leave

The complexity of paid leave rules, including calculating allowances and managing exceptional leave, can make planning challenging.

HR management software helps companies streamline this process by automating leave requests, integrating them into work schedules, and ensuring compliance with legal obligations.

Employees can submit leave requests directly via their personal account, and managers receive instant notifications. Approved leave is automatically recorded in the company’s schedule and payroll system.

This automation reduces errors, ensures real-time communication between HR and employees, and provides clear records to demonstrate compliance during audits.

A comprehensive HR software tool ensures employers meet legal obligations while simplifying leave management. It also helps maintain clear communication, contributing to a well-organised workforce and reduced administrative workload for HR teams.