Prud’hommes: when Manuel Valls creates a new social threshold, or even several …

THE ECO SCAN – In his plan for employment in very small businesses, the Prime Minister announced the creation of two scales of compensation: one before 20 employees, another after. This is called a social threshold. Another, around 250 or 300 employees, should also be instituted in Parliament.

While the, presented Tuesday morning by, will not trigger a tsunami of small business hires, it is nonetheless irrelevant. More than providing immediate solutions to small bosses, it gives them a real breath of fresh air and the minimum keys to bounce back and recruit when growth really picks up.

Because if the martingale to create jobs in a period of economic sluggishness existed, it would be known and it would be a long time ago that an executive, whoever he was, would have implemented it. It is not a hiring bonus or dismissal facilities that induce the intention to hire, but order books that fill up because they allow to consider the future more calmly. However, for the time being, small bosses still have their pockets empty of contracts …

There is above all a paradox in this plan which has almost gone unnoticed and which clearly demonstrates the haste with which the measures for employment in VSEs and SMEs were stopped. While the executive has continued to assert for at least a year that it is necessary to smooth out the real obstacles to hiring in small businesses – the plan also provides for a social and fiscal freeze for three years. crossing of the thresholds of 10, 20 and 50 employees, the Prime Minister has reinforced that of 20 employees with his measure which consists of scaling up and capping damages to in the event of dismissal recognized without real and serious cause.

“We have decided to establish a ceiling and a floor for the compensation that the employer must pay in the event of a dismissal disputed at the industrial tribunal. This scale will take into account the size of the company and the seniority of the employees ”

Manuel Valls, June 9, 2015

Well yes: there will be a ceiling and a floor before the 20-employee bar (between 2 and 12 months of salary depending on the employee’s seniority) and another after this 20-employee bar (between 4 and 20 months of salary, always according to the employee’s seniority). Admit that, beyond the relevance of this precise measure, it may seem contradictory when we have been hammering out the opposite for months. And especially when a legislative text (the Rebsamen law on social dialogue in companies), aimed in particular at limiting the obligations inherent to the bosses according to the size of the company, is being discussed …

This threshold, like all the others, may also have a significant perverse effect and limit the propensity of bosses who employ 18 or 19 employees to recruit one more person. And with good reason: by passing this milestone of 20 employees, they will be exposed to doubled compensation in the event of a dispute over a dismissal at the industrial tribunal.

When you look at it closely, there will even be a second threshold in terms of the scale of industrial tribunal indemnities. “For larger companies, from the threshold of 250 or 300 employees – we will determine with the parliamentarians – we will adapt these measures”, announced Tuesday the Prime Minister.

It is also not excluded that the deputies even create another, a third. If “it is not the large companies which are at the heart of this necessary security”, as Manuel Valls insisted, why not introduce another scale, beyond the threshold of 1000 employees? It would indeed be strange if very large companies – which have the means to pay colossal sums in the event of unfair dismissal without this weighing on their cash flow – are limited in their capacity to pay. But Manuel Valls is not except for a paradox …