Since 24 April 2024, France based employees who are on sick leave unrelated to a work accident or professional illness will continue to acquire paid leave in a similar way to those who are on a work-related sick leave, in application of European Union law (Article 32 §1 of the Charter of Fundamental Rights).
This new law impacts both the acquisition of paid leave and the carry-over period as follows:
New rules regarding paid leave acquisition
| Absence from work caused by non-occupational illness | Absence caused by occupational illness / accident at work | |
| Sick leave period considered as actual working time for the acquisition of paid leave | Employees acquire paid leave before and during the suspension of their employment contract without any time limit. | |
| Number of paid leave acquired during sick leave | Employees acquire 2 days per month of absence, within a limit of 4 weeks (24 working days). Unless provided otherwise in the applicable collective bargaining agreement, paid leave allowance is calculated as follows: 10% x 80% of the remuneration paid during the sick leave period. | Employees acquire 2.5 days per month of absence, within a limit of 5 weeks (30 working days). Unless provided otherwise in the applicable collective bargaining agreement, paid leave allowance is calculated as follows: 10% x 100% of the remuneration paid during the sick leave period. |
New rules regarding carry-over of paid leave
| New entitlements | Employees who are unable to take their annual leave due to sick leave (whether related or unrelated to work) can, under certain conditions, benefit from a carry-over. |
| Timeline | As from April 2024, employees will be able to take their accrued paid leave during up to 15 months from:the information date by the employer related to holiday rights if the employee has been absent for less than one year;the end of the annual leave period (i.e: 31 May of the following year) if the employee has been absent for more than one year and the employment contract remains suspended.After this period of 15 months, days off acquired are lost and should not be paid by the employer. |
| Employee information | Companies must now inform employees of their paid leave entitlements within 1 month from the date they return to work. This information can be communicated by any means, e.g. through a payslip or an email with acknowledgment of receipt. |
What are the risks for employers?
As from 24 April 2024:
- current employees can take action within 2 years to assert the new rights they hold under these provisions and they can extend their claim back to 1 December 2009;
- employees whose employment contract has already been terminated on 24 April 2024 can take action within 3 years as of the day they became aware of these rights and can ask for back payment of paid holiday allowance in respect of the last three years.
Companies employing talents in France are encouraged to update their paid leave policies and practices to reflect these changes.
Law n°2024-364“DADDUE” (article 37) published on 23 April 2024
For further information, please contact:
Nathalie Devernay, Partner, Bird & Bird
nathalie.devernay@twobirds.com
