Guide Social 2024 ATH - Groupe Y - EN


THE INTERNALIZED PAYROLL SOLUTION • You can easily carry out your payroll independently; • You benefit from the assistance of a dedicated contact. THE COLLABORATIVE PAYROLL SOLUTION • We define together your level of support. THE IN-OFFICE PAYROLL SOLUTION • You entrust us with your social payroll management; • Our consultants take care of everything. Your support from A to Simplify your Payroll with Groupe Y Solutions TRAINING ORGANIZATION, GROUPE Y SUPPORTS YOU IN YOUR SKILLS DEVELOPMENT • Social and payroll • Social rights / complience • Human ressources • Sustainability and ESG • Accounting • GDPR • Administrative and Financial Department • Legal Céline DENUILLY

© - ATH all rights reserved - Edition 2024 3 2024 EMPLOYER’S GUIDE HIRING EMPLOYEES 1 Hiring an employee 4 2 Hiring a foreign employee 6 3 Collective agreement 8 4 Company agreement 10 5 Key compulsory registers and documents 12 6 Key compulsory notices 14 7 Company rules and regulations 16 8 Social and Economic Committee (CSE) 18 EMPLOYMENT CONTRACT 9 Fixed-term contract 20 10 Part-time contract 22 11 Apprenticeship contract 24 12 Professional training contract 26 13 Probation period 28 WORKING HOURS 14 Working hours 30 15 Working hours of young people under the age of 18 32 16 Fixed working time agreement 34 17 Monitoring of working hours 36 18 Sunday working 38 COMPENSATION 19 Benefits 40 20 Contribution to travel costs 42 21 Supplemental employee benefits 44 22 Benefits in kind 46 23 Business expenses 48 24 Employee savings schemes 50 25 Value-sharing bonus 52 PERFORMANCE OF EMPLOYMENT CONTRACT 26 Sick leave and workplace accidents 54 27 Maternity, paternity and other family leave 56 28 Paid holidays 58 29 Public holidays 60 30 Professional development 62 31 Prevention of occupational hazards 64 32 Occupational risk assessment document 66 33 Remote working 68 34 Working abroad 70 TERMINATION OF EMPLOYMENT CONTRACT 35 Termination of permanent employment contract 72 36 Retirement or pensioning off 74 OTHER FORMS OF WORKING 37 Combined employment & retirement 76 38 Internships in a business environment 78 PRACTICAL TOOLS URSSAF inspection 80 FAQ on deduction at source on salaries 82 Staff management memo 84 Periods for keeping employment documents 86 Useful websites 87 Update on 30 april 2024 New

© - ATH all rights reserved - Edition 2024 4 EMPLOYER’S GUIDE 2024 NOTICE OF EMPLOYMENT (DPAE) A very important formality for employers is the Notice of Employment (« Déclaration préalable à l’embauche »), which must be sent to the relevant French social security office [URSSAF or MSA], in principle electronically, prior to hiring any employee. The first time an employee is hired, a preliminary notice must be submitted to the employment inspectorate. Failure to complete the DPAE is subject to a category 5 fine (c.f. page 85) and a penalty of 300 times the guaranteed minimum (€ 1,245 as at 1/1/2024). A penalty for illegal work may also be applied. EMPLOYMENT OF FOREIGN EMPLOYEES When the future employee is a foreign national (from outside the EU, EEA and Switzerland), you must check before hiring the person concerned that he/she has a valid work permit (refer Fact Sheet 2). Make sure you have all the information required to fulfil the pre-employment formalities when interviewing your future employee. DRAFTING THE EMPLOYMENT CONTRACT The employment contract sets out the essential elements of the contractual relationship between the employer and the employee. Its structure is formally regulated in some cases. Permanent contract, short-term contract, part-time contract, work-training contract, assisted contract... The possibilities are many and varied ! Ask us, before hiring, what is the best contract to use. Before hiring, consider any possible funding (national, regions, employment agency...). REGISTERING THE EMPLOYEE WITH PENSION, BENEFIT AND HEALTH PLANS Check the relevant obligations applicable to the status of the employee (collective agreement, occupational sector agreement, company agreement, etc.). HIRING AN EMPLOYEE 1 What you need to know : An employer is required to fulfil a number of formalities when hiring an employee. If the employer fails to comply with such obligations, it may face criminal sanctions for illegal work. Sanction Information Advice

© - ATH all rights reserved - Edition 2024 5 2024 EMPLOYER’S GUIDE Make sure that employees have individually signed up for collective schemes. For health cover schemes, employees may apply for an exemption in certain cases. EMPLOYMENT MEDICAL This comprises : • A preliminary medical for employees not exposed to particular risks. This must be arranged within 3 months from the effective start date ; or • A pre-employment fitness medical for employees assigned to a position with particular risks. It is important to make sure an appointment can be made for the new employee at the occupational health centre within the set time. Ask us about specific cases and possible exemptions. STAFF REGISTER Every employer must keep a staff register in each premises where staff are employed. It must include the relevant compulsory information including in particular the employee’s identification details, job and qualifications, hiring and leaving dates, type of employment contract and so on. It must be updated whenever a recordable event occurs or is modified. Failure to keep the staff register is penalised by a category 4 fine (amount page 85). INFORMATION TO BE SENT TO THE EMPLOYEE From 1 November 2023, the employer must provide the employee with one or more written documents containing the main information relating to the employment relationship. Fourteen minimum items of information are listed. Some of this information is included in the employment contract, while others may be included in an appendix to the contract, or even in an onboarding booklet. Certain information must be sent on the 7th calendar day after the hiring day. These are mainly those to be included in the employment contract (identity of the parties, job title, probation period, remuneration, working hours, etc.). It is therefore essential to ensure that the employment contract contains this information and that it is sent to the employee within 7 days after the hiring day and signed by both parties. Other information must be provided in the month following recruitment, mainly concerning : training, paid leave, procedures for terminating the employment contract, the collective agreement, social protection, etc. Depending on the information provided, this must be done by express mention on a document sent to the employee or by reference to legislative, regulatory or contractual provisions. Ask us, some additional information must be provided to employee who is going to work abroad. An employee who has not received the compulsory information by the deadline must give his employer formal notice to provide it. The employer has 7 calendar days to respond to the request. DOCUMENTS TO BE GIVEN TO EMPLOYEES Document setting out the information contained in the notice of employment. Guide on the collective agreements applicable. Comprehensive guide on the coverage provided by employee benefit and health cover schemes and the conditions under which they apply. Booklet on employee savings plans available within the company. The employee must also be informed about his/her right to a professional appraisal every 2 years (or at the frequency set by collective agreement). To facilitate the integration of new employees, the company can provide them with a welcome handbook.

© - ATH all rights reserved - Edition 2024 6 EMPLOYER’S GUIDE 2024 EEA FOREIGN NATIONAL A work permit is not required or employment in France for the following countries : • Germany, Austria, Belgium, Cyprus, Croatia, Denmark, Spain, Finland, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Sweden, Iceland, Liechtenstein, Norway, Switzerland, Estonia, Hungary, Latvia, Lithuania, Slovakia, Poland, Czech Republic, Slovenia, Romania and Bulgaria. To hire a national from one of these States, the Employer only has to check the nationality of the candidate by means of an appropriate identity document. NON-EU FOREIGN NATIONAL Either the employer is hiring a foreign national who is legally resident in France : • It must then ensure that this foreign employee has a work permit allowing them to occupy the post offered. Or the employer is bringing in a foreign employee who does not live in France : • The employer must then submit an application to bring in a foreign worker to the Direction régionale de l'économie, de l'emploi, du travail et des solidarités (DREETS). Ask us for the list and details of work permits. Some residence permits automatically grant the right to work. ENTRY PROCEDURE When an employer wants to hire a foreign national who is not in France yet, it must complete the relevant procedure with the authorities to obtain a work permit. The authorities check, in particular, that there are no job seekers who could potentially be hired by the employer. A fee is payable to the General Directorate of Public Finance (DGFiP) for work permits issued as part of the entry procedure. Ask us about the different stages of the entry procedure. Until 31/12/2026, a temporary scheme has been introduced to regularise the situation of illegal foreign workers employed in short-staffed occupations. The application is made at the sole initiative of the foreign worker. HIRING A FOREIGN EMPLOYEE 2 What you need to know : When hiring a foreign employee, in addition to the formalities applicable to all employees, an employer must check that the person concerned has a valid permit to work in France. Legitimate foreign employees must benefit from the same rights as French employees.

© - ATH all rights reserved - Edition 2024 7 2024 EMPLOYER’S GUIDE CHECKS TO BE CARRIED OUT BY THE EMPLOYER It is forbidden to employ, directly or indirectly, or to retain in one's service a foreigner who does not hold a permit authorising him to work or a foreigner who has a permit to work in a professional category, profession or geographical area other than those mentioned on his permit. The employer must check : • The nationality of the employee, • The details of the work permit : activities permitted, authorised geographical areas, • The fact that there is a work permit (unless the foreigner is included on the list of job seekers kept by the employment agency). The employer is required to send a copy of the permit produced by the foreign national to the préfet of the department where the employment premises are located, by registered post or email, for authentication, 2 working days before the effective date of employment. The préfet replies within 2 working days from receipt of the request. It is also necessary to ensure that work permits are renewed. If they are not renewed, the employer must terminate the contract. Said termination constitutes dismissal. Any breach of these rules is penalised by 5 year’s imprisonment and a fine of € 30,000 and the payment of an administrative fine of at least 5,000 times the guaranteed minimum (so € 20,750 as at 1/01/2024). EMPLOYMENT OF FOREIGN WORKERS All foreign employees have the same rights as French workers with respect to the applicable legislation, regulations and collective agreements. The employer must record the type and number of the work permit on the staff register. A copy of the permit must be attached to the register. The employment contract can be translated at the request of the foreign employee. Only the translated document can be cited in dealings with said employee. Employees who provide evidence of geographical constraints can take 5 consecutive weeks of paid leave. If an employee is dismissed due to non-compliance with the relevant requirements, he/she will be entitled to a lump sum equivalent to 3 months’ salary, or the severance pay according to the applicable legislation or collective agreement if more favourable. Ask us, the company's skills development plan can include training for foreign employees to enable them to reach a French minimum level.

© - ATH all rights reserved - Edition 2024 8 EMPLOYER’S GUIDE 2024 APPLICATION OF A COLLECTIVE AGREEMENT Employers are required to apply the collective agreement linked to the company’s main business, if this agreement has been extended. If the collective agreement has not been extended (published in the official legal bulletin), it is only applicable if the employer is affiliated to one of the signatory employer organisations. The company’s NAF code [French business classification system] is used, in principle, to determine the collective agreement applicable. The applicable collective agreement also depends on the company’s location given that its scope can be national, regional or local. Ask us which collective agreement is applicable if the company has a number of different activities. If there is a change in activity (merger, assignment, etc.), make sure you check the impact on how the applicable collective agreement is determined. BENEFICIARIES The collective agreement applies to all the company’s employees. Application is immediate, automatic and mandatory once the agreement comes into effect. Some occupations, such as sales reps or journalists, do not benefit from the collective agreement by which their employer is bound, but are covered by specific agreements linked to their occupation. Ask us about the possibility of voluntary application of a collective agreement. THE COLLECTIVE AGREEMENT 3 What you need to know : A collective agreement is an agreement between the staff representative bodies and employers of a specific occupational sector. It details the employment and working conditions of employees, their professional development and their protections. Employers must establish and examine the collective agreement applicable to their company. The employment contract and payslip must be drafted with reference to the collective agreement.

© - ATH all rights reserved - Edition 2024 9 2024 EMPLOYER’S GUIDE THE CONTENT The collective agreement adapts the provisions of the Employment Code to the specific circumstances of the relevant business sector. It generally includes provisions relating to : • C lassifications, probation periods, notice, severance pay, etc., • Working hours : organisation, overtime, fixed working day agreements, part-time work, • Compensation : minimum salaries, length-of-service bonuses, 13th month, holiday bonus…, • Leave : paid holidays, sick leave, maternity leave, workplace accident, family events…, • Retirement and employee benefits... In principle, the collective agreement includes more favourable measures than the applicable law. However, it can deviate from certain legal provisions in a way that is unfavourable to employees when said provisions allow this. Similarly, in certain sectors, a company agreement can deviate from a sector agreement, even if this is less favourable for employees. Conversely, clauses of the employment contract that are less favourable than the collective agreement are inapplicable. Ask us, the provisions of the collective agreement must always be compared with those of the Employment Code to check which ones are applicable. An employee can claim damages for failure to apply a provision of the Collective Agreement. NOTIFICATION OF EMPLOYEES In the month following their recruitment, employees are informed of the collective agreements applicable in the company. The payslip must indicate the collective agreement applied. The employer must ensure there is an up-to-date copy of the applicable collective agreement available to staff at their workplace. A notice indicating the applicable collective agreement, where it is kept and how it can be viewed by employees while working for the company must be sent to employees by all available means. Companies with an intranet system must put an up-to-date copy of the collective agreement on this system. A copy of the applicable collective agreement must be provided to trade union delegates and the social and economic committee. If employees are not notified of the applicable collective agreement, the company is liable for a category 4 fine (amount on page 85) and the employer cannot invoke the agreement against the employee.

© - ATH all rights reserved - Edition 2024 10 EMPLOYER’S GUIDE 2024 PRINCIPLE OF COLLECTIVE AGREEMENT Any private employer can establish a collective company agreement on its chosen subject. In principle, the company agreement cannot deviate from public policy provisions. But in limited cases, a company collective agreement can deviate from the law in a way that is unfavourable to the employee. Furthermore, the company agreement now takes precedence over the sector agreement for many subjects. So it is possible to deviate from the sector agreement to better adapt to the company. Note that many systems can only be implemented if a collective agreement provides for this (fixed working days contract, annualisation of working hours, night working…). Ask us how the various provisions in different sectors fit together so you can find out the options for negotiation open to your Company. NEGOTIATION WITH A UNION REPRESENTATIVE Company collective agreements must in principle be signed with union representatives. A union representative can only be appointed in companies with up to 50 employees. For the agreement to be valid, the signatory unions must account for more than 50 % of the votes cast in favour of the representative trade unions in the first round of the last elections. Ask us about the options for approving an agreement that does not achieve a majority. NEGOTIATION WITHOUT A UNION REPRESENTATIVE • C ompanies with less than 11 employees In these companies, a collective agreement can be implemented by referendum. The employer proposes a draft agreement to the employees and the validity of the agreement is subject to ratification by 2/3 of employees. The agreement can relate to any subject open to negotiation. Companies with between 11 and 20 employees without a staff representative and without a union representative can also use a referendum to establish a collective agreement. Some collective agreements make turnkey contracts available to companies with less than 50 employees. COMPANY AGREEMENT 4 What you need to know : By negotiating a company collective agreement, certain rules of employment law can be adapted to the company’s needs. Thus, in a number of cases, the company agreement can deviate from the provisions of the collective agreement even in a sense that is less favourable for employees. A company agreement can even be established for a small company.

© - ATH all rights reserved - Edition 2024 11 2024 EMPLOYER’S GUIDE • Companies with between 11 and 50 employees In these companies, an agreement can be negotiated and signed with : • An elected representative of the CSE appointed by a representative union, • A non-appointed elected representative of the CSE, • An employee appointed by a representative union organisation. The agreement can relate to all the matters open to negotiation. To be appointed, an elected representative or a non-elected employee must contact a representative union in the sector or failing that a national and inter- professional union organisation. If the agreement is negotiated with elected representatives, appointed or not, it must be signed by elected representatives representing the majority of votes cast during the last elections in order to be valid. If the agreement is signed with an appointed employee, it must be approved by the employees by a majority of votes in order to be applicable. A vote must be organised within 2 months after signature of the agreement. Make sure you check that the appointing trade union is representative, and check the content of the mandate which must correspond to the subject of negotiation. • C ompanies with at least 50 employees In this case, the company must negotiate with an elected representative of the CSE. In the absence of an appointed elected representative, the negotiation is conducted with a non- appointed elected representative. To be valid, the agreement must be signed by elected representatives representing the majority of votes cast during the last elections. In this context, the negotiation can only relate to measures that are governed by a collective agreement as per applicable legislation. In the absence of an elected representative or if no elected representative has come forward to negotiate, the employer can negotiate with an appointed employee. The agreement signed with an appointed elected representative or an appointed employee can cover all matters open to negotiation. It must be approved by the employees by a majority of votes cast. A vote must be organised within 2 months after the signature of the agreement. When the company has no elected representatives and is negotiating with an appointed employee, it must provide written proof of this. TERM OF THE AGREEMENT The company agreement must stipulate whether its term is fixed or non-fixed. In the absence of a clause relating to term, the agreement is deemed to have been signed for a fixed term of 5 years. REGISTRATION AND NOTICE The agreement must be registered in digital form (« TéléAccords » platform) with the relevant authority by the company’s legal representative. Collective agreements are included in a national data base that can be viewed online (Légifrance website). The signatory parties can, under certain conditions, object to the publication of part of the agreement. Agreements on working hours, time off and leave must be submitted to the sector’s permanent negotiation and interpretation committee. A copy of the agreement is also filed with the registry of the industrial tribunal of the location where it is signed. In principle, collective agreements apply from the day after they have been registered. Ask us about the registration procedures and the documents to be enclosed. NEGOTIATION WITHOUT A UNION REPRESENTATIVE

© - ATH all rights reserved - Edition 2024 12 EMPLOYER’S GUIDE 2024 STAFF REGISTER This register records, in chronological order of hires, everyone working in the company (employee, temp, loan, intern,...). It must include the relevant compulsory information including in particular the employee’s identification details, job and qualifications, hiring and leaving dates, type of employment contract, type and number of the foreign worker's work permit and so on. It must be made available to the social and economic committee, the employment inspectorate and social security agents. A copy of this register must be kept on each site. Failure to keep the staff register is liable for a category 4 fine (amount page 85), applied as many times as affected employees. The employer may keep the staff register in computer format if equivalent control safeguards are maintained. Prior consultation of the CSE is required. OCCUPATIONAL RISK ASSESSMENT DOCUMENT (DUERP) All managers must assess existing risks in their company : manufacturing procedures, equipment, fitting out of work premises… The results of this assessment must be formalised in the Occupational risk assessment document. In companies with less than 50 employees, the occupational risk assessment document must also record all prevention initiatives defined by the company. (Refer Fact Sheet 32) REGISTER OF HEALTH AND SAFETY CONTROLS Statements, results and reports relating to the health and safety inspections and controls incumbent on the employer must be kept for 5 years. The same applies for observations and notices issued by the employment inspectorate and relating to matters of health and safety, occupational health and risk prevention. These elements can be collected in a single register. In any event, the documents on the last two controls or verifications must be kept. Failure to keep this register is liable for a category 4 fine (amount page 85). KEY COMPULSORY REGISTERS AND DOCUMENTS 5 What you need to know : Irrespective of how many employees it has and its business, any employer is required to establish and keep a number of compulsory registers and documents.

© - ATH all rights reserved - Edition 2024 13 2024 EMPLOYER’S GUIDE REGISTER OF STAFF REPRESENTATIVES ON THE SOCIAL AND ECONOMIC COMMITTEE This register includes requests from members of the staff delegation of the social and economic committee and the employer’s detailed responses (companies with less than 50 employees). Failure to keep this register is liable for a fine of € 7,500 (offence of obstruction). DUPLICATE PAY SLIPS The employer keeps a duplicate of employees’ payslips for 5 years. If digital payslips are issued, the employer must guarantee to the employee that they will be available for a period of 50 years or until the employee has reached the age of 75. Failure to keep duplicates of payslips is liable for a category 3 fine (amount page 85). EMPLOYEE MEDICAL RECORDS To be kept by the company. REGISTER OF PUBLIC HEALTH AND ENVIRONMENTAL REPORTS This register must record reports raised by employees and staff representatives on the company’s use of products or manufacturing processes that entail a serious risk to public health or the environment. Employees may also use the reporting mechanism or public disclosure. MONITORING OF WORKING HOURS All managers must be able to provide proof of each employee’s working hours. Make sure you have the necessary systems in place for such monitoring. WEEKLY TIME-OFF REGISTER This register must be kept when time-off is not granted collectively all day on Sundays or in one of the forms provided by law. OTHER COMPULSORY REGISTERS AND DOCUMENTS Other registers or documents may be compulsory based on your business or location (e.g. register of list of temporary work sites, register of tips for hospitality businesses). Ask us about what your obligations are in terms of compulsory registers depending on your business. REGISTERS HELD IN COMPUTERISED FORM Automated collection, processing and storage of personal data must comply with the « General Data Protection Regulation » (GDPR).

© - ATH all rights reserved - Edition 2024 14 EMPLOYER’S GUIDE 2024 DETAILS OF EMPLOYMENT INSPECTORATE Address, telephone number and name of competent inspectorate. DETAILS OF OCCUPATIONAL HEALTH AND EMERGENCY SERVICES Address and telephone number of occupational health and emergency services. SIGNAGE FOR FIRE PREVENTION AND FIREFIGHTING FACILITIES INSTRUCTIONS IN EVENT OF ELECTRCAL ACCIDENT First aid to be given to victims. Make sure you have a complete, legible notice board accessible to all employees. BAN ON SMOKING AND VAPING Reminder of the principle of no smoking and designated areas. Reminder of the principle of no vaping. NOTIFICATION OF EMPLOYEES OF HEALTH AND SAFETY RISKS THEY FACE Means of access to the risk assessment document and prevention measures identified. In the event of an accident, the employer is liable for failure to inform employees of any health and safety risks they face. NOTICE OF EXISTENCE OF COLLECTIVE AGREEMENTS* Title of agreements and collective employment agreements applicable. Place where documents are available to staff. If such agreements are not posted or notified, they cannot be applied to employees. KEY COMPULSORY NOTICES 6 What you need to know : In any establishment, a certain amount of information must be brought to the attention of employees, some by means of posting, some by any other means (the latter are marked by an *).

© - ATH all rights reserved - Edition 2024 15 2024 EMPLOYER’S GUIDE WORKING HOURS Company working hours, work cycle, working time arrangement, reduction of working hours. WEEKLY TIME OFF* Days and hours when all or part of the staff are given time off other than on a Sunday. DAILY TIME OFF For employees not covered by company working hours. Make sure information on working hours is kept up to date. PERIODS OF PAID HOLIDAY AND ORDER IN WHICH HOLIDAYS ARE TAKEN* PAID HOLIDAYS FUND (IF APPLICABLE) * Company name and address of fund. PROFIT-SHARING* Existence and content of the profit-sharing agreement. Companies with at least 50 employees. COMPANY RULES AND REGULATIONS * Companies with at least 50 employees. WORKING FROM HOME ELECTORAL NOTICES* Organisation of elections, electoral lists, scrutineering procedures, notice of vacancies. After elections, names of members of the Social and Economic committee (CSE), and of commissions. Failure to inform employees about elections of employee representative may result in their cancellation. UNIONS * Availability of addresses of representative employee unions in the company’s sector, on the Employment Ministry’s website. PROVISIONS RELATING TO EQUAL PAY* Articles L. 3221-1 to L. 3221-7 of the French employment code. INDEX OF PROFESSIONAL EQUALITY * Companies with at least 50 employees. PREVENTION OF DISCRIMINATION* Number of discrimination hotline. Articles 225-1 to 225-4 of the French Criminal Code. PROVISIONS RELATING TO HARRASSMENT* Sexual harassment : Article 222-33 of the French criminal code, civil and criminal remedies and details of the relevant authorities and services. Psychological harassment : Article 222-33-2 of the French criminal code. WHISTLEBLOWING COMPLAINT PROCEDURE Whistleblowing complaint reporting and processing procedure drawn up by the employer. Companies with at least 50 employees. Ask us about other notices that might be compulsory for your company, particularly based on your employee numbers or your business.

© - ATH all rights reserved - Edition 2024 16 EMPLOYER’S GUIDE 2024 COMPULSORY FOR COMPANIES WITH AT LEAST 50 EMPLOYEES Optional below the legal threshold of 50 employees (20 employees before January 1, 2020). Ask us about how to calculate the staff threshold. DRAFTING OF RULES AND REGULATIONS BY THE EMPLOYER It is the responsibility of the employer to draft the company’s rules and regulations. The rules and regulations are applicable to the employees and the employer itself. Ask us about how to draft your rules and regulations and the clauses that may be stipulated by your company (alcohol, drugs, neutrality, ICT ...) LIMITED CONTENT Health and safety as well as discipline comprise the main framework of the company rules and regulations. • H ealth and safety provisions The rules and regulations must include all the applicable provi- sions employees must comply with in order to protect their health and that of other people concerned, due to their actions and omissions at work. In particular, they provide the framework for blood alcohol level testing in the workplace. • Disciplinary provisions The rules and regulations must determine the general and permanent rules relating to discipline. In particular, they determine the nature and scale of sanctions the employer can take. In those companies where it is compulsory, a sanction can only be applied if it is stipulated by the rules and regulations. The rules and regulations set out the provisions relating to employees’ rights of defence and the provisions relating to psychological and sexual harassment and sexist acts stipulated by the French employment code. It also highlights the existence of the whistleblower protection mechanism. Make sure your rules and regulations do not include clauses that are non-compliant. Certain clauses of the rules and regulations cannot be imposed on all employees. They must be justified by the employee’s specific tasks and proportional to the aim sought. COMPANY RULES AND REGULATIONS 7 What you need to know : Company rules and regulations must be drafted by all employers who ordinarily have a staff of at least 50 employees. But they can also be useful in other companies. Règlement intérieur

© - ATH all rights reserved - Edition 2024 17 2024 EMPLOYER’S GUIDE CSE CONSULTATION The company rules and regulations must be submitted to the Social and Economic Committee for its approval. If the CSE is not consulted, they cannot be applied to the employees. If this consultation is not carried out, the employer incurs the penalty for the offence of obstruction, namely a fine of € 7,500. APPROVAL BY EMPLOYMENT INSPECTORATE The employer must submit the rules and regulations and the written opinion of the social and economic committee to the employment inspectorate. The employment inspectorate checks the content of the rules and regulations when it receives a copy thereof, but also, subsequently, at any time. In addition, the employer may ask the employment inspectorate to deliver an explicit decision on the compliance of all or part its rules and regulations, via a « ruling » procedure. The employment inspectorate can require the withdrawal or modification of any non- compliant provision. OTHER REGISTRATION AND NOTICE FORMALITIES The rules and regulations must be filed with the registry of the industrial tribunal. They are brought to the attention of persons having access to the work premises or the premises where the employee is hired. If necessary, they may be accompanied with translations into other languages. They must be regularly updated. Make sure that the same notice procedure is implemented for any subsequent modification of your company rules and regulations. EFFECTIVE DATE The company rules and regulations indicate their effective date which is at least one month after the last notice formality. Breaches of any of the provisions of the company rules and regulations are liable for a category 4 fine (amount page 85). IT POLICY The implementation of an IT policy enables the employer to improve the security of its IT system used by employees. It is also a tool to protect personal data. An IT policy is drafted and subject to the procedures for the adoption of company rules and regulations in the case where the employer wishes to lay down rules of conduct for the use of computer equipment, which are mandatory and for which non-compliance incurs disciplinary action. An IT policy is not mandatory but strongly recommended. The employer can also draw up a safety charter for remote working.

© - ATH all rights reserved - Edition 2024 18 EMPLOYER’S GUIDE 2024 SETTING UP THE CSE The Social and Economic Committee replaces the 3 representative bodies that previously existed : staff delegates (DP) in businesses with at least 11 employees, works council (CE), and health, safety & working conditions committee (CHSCT) in businesses with at least 50 employees. The CSE must be set up when the company has a headcount of at least 11 employees for 12 consecutive months. The headcount is calculated based on the rules of employment law. In companies with at least 50 employees having at least 2 separate sites, a central CSE and site CSEs must be set up. ORGANISATION OF ELECTIONS The employer is responsible for organising elections and re-elections of staff representatives. When the body has not been set up, an employee or a union organisation can request the organisation of elections at any time. The term of office of members of the CSE is 4 years. A sector collective agreement or a company agreement can set this term between 2 and 4 years. When, after 2 rounds of elections, the CSE has not been able to be set up due to lack of a candidate, a report must be prepared by the employer. DUTIES OF THE CSE IN COMPANIES WITH 11 TO 49 EMPLOYEES The CSE staff delegation performs some of the duties that were incumbent on staff representatives. It presents individual or joint claims to the employer concerning salaries and the application of the French employment code, agreements and collective agreements. It helps to promote health, safety and working conditions. It carries out investigations into workplace accidents or occupational illnesses. It refers all complaints or observations by staff to the employment inspectorate. It has the right to report any infringement of personal rights. DUTIES OF THE CSE IN COMPANIES WITH AT LEAST 50 EMPLOYEES The members of the CSE perform the duties that were incumbent on the staff representatives, works council and health & safety committee. Financial duties : the role of CSE is to represent the collective voice of the employees so their interests can be taken into account in decisions relating to the management and economic and financial development of the company, organisation, professional development and production techniques SOCIAL AND ECONOMIC COMMITTEE 8 What you need to know : The Social and Economic Committee (CSE) is the elected representative body of the company’s staff. All employers with at least 11 employees must have set up a CSE.

© - ATH all rights reserved - Edition 2024 19 2024 EMPLOYER’S GUIDE particulary with regard to the environmental consequences of theses decisions. Duties on health, safety and working conditions : the CSE analyses occupational risks, helps to facilitate access by women to all jobs, proposes anti-harassment measures and carries out health and safety inspections. Social and cultural duties : services developed in favour of employees and their families. The threshold of 50 employees is deemed to have been reached when the company reaches or exceeds it for 12 consecutive months. MEANS OF ACTION OF THE CSE The number of elected representatives on the CSE varies according to the number of staff (1 permanent member and 1 substitute member in companies with 11 to 24 employees). Permanent members are given time credits to perform their duties (10 hours per month by permanent member in companies with less than 50 employees), a room and a notice board and health, safety and working conditions training of at least 5 days. In companies with at least 50 employees, the CSE has a civil capacity to act. It has an operating budget of 0.2 % of the payroll (0.22 % in companies with at least 2,000 employees) and a budget for social and cultural activities determined by collective agreement. Its members receive financial training. In these companies, the employer must set up an economic, social and environnemental data base (BDESE) including all the information required for recurrent consultation and notification of the CSE. For the most part, the operating conditions of the CSE are determined by negotiation. Ask us about the conditions under which part of the annual surplus of the CSE’s operating budget can be transferred to funding social and cultural activities and vice versa. PROTECTION OF STAFF REPRESENTATIVES For the duration of their term of office and 6 months after, employee members of the CSE cannot be dismissed or laid off or be the subject of a termination by agreement, unless authorised by the employment inspectorate. This also refers to the candidates for elections for a period of 6 months. Dismissal without authorisation is considered invalid. The employee is entitled to reintegration and compensation. OFFENCE OF OBSTRUCTION Obstructing the set up or operation of a staff representative body is an offence. In addition, failure to set up the CSE can have important consequences in situations where consultation of such bodies is required by law (physical incapacity, redundancy, short-time working…). Failure to set up the CSE is penalised by 1 year’s imprisonment and a fine of € 7,500. Obstructing the operation of the CSE is penalised by a fine of € 7,500. UNION REPRESENTATIVE A union representation may be appointed in a company or business with up to 50 employees. In companies with less than 50 employees, representative unions can appoint a member of the staff delegation to the CSE as a union representative. He/she performs the role of representing the union to which he/she belongs and negotiating agreements or collective agreements.

© - ATH all rights reserved - Edition 2024 20 EMPLOYER’S GUIDE 2024 MAIN CASES WHERE A FIXED-TERM CONTRACT IS USED A fixed-term contract can only be signed where stipulated by applicable legislation and for the performance of a precise and temporary task : • Replacement of an employee, • T emporary increase in company’s business, • Seasonal jobs or jobs for which a fixed-term contract is usually used, • Replacement of company manager, • Recruitment under the applicable employment policy (professional training andapprenticeship contracts, seniors contract and so on), • Project-based fixed-term contract for engineers and executives. Ask us, to make sure you avoid signing a fixed-term contract where not permitted by law. Under no circumstances may a fixed-term contract (CDD) be used to fill a job related to the normal and permanent activity of the company. FORM OF FIXED-TERM CONTRACT The fixed-term contract must be in writing, otherwise it is deemed to be a permanent contract. Failure to sign by one of the parties is classed as the absence of a written document. It must be given to the employee within 2 days of being hired. It must include certain details including : reason for contract, contract end date, post held, length of probation period… The fixed-term contract must include detailed reasons for its use, otherwise it might be re-classed as a permanent contract. The employer is liable in this case for a fine of € 3,750. PROBATION PERIOD The statutory maximum period is 1 day a week up to 2 weeks maximum for a fixed-term contract of 6 months or less. 1 month maximum for a fixedterm contract of more than 6 months. If the employer or employee terminates the contract during the probation period, notice must be given. (refer to Fact Sheet 13). When the contract does not have a precise term, the probation period is calculated on the basis of the minimum term of the contract. TERM OF FIXED-TERM CONTRACT The fixed-term contract can be signed : • From date to date : in this case, it has a maximum term of 18 months, including renewals, only 2 renewals being allowed, FIXED-TERM CONTRACT 9 What you need to know : The fixed-term contract is an exceptional form of employment contract subject to strict regulations. If a fixed-term contract does not comply with the rules laid down by the applicable legislation, it may be reclassified as a permanent contract. Note that an extended collective agreement may relax certain rules governing fixed term contracts.

© - ATH all rights reserved - Edition 2024 21 2024 EMPLOYER’S GUIDE • With no precise term: in this case, the term of the contract will be linked to the achievement of the object of the contract. This type of fixed-term contract must stipulate a minimum term. Ask us for details about the maximum contract terms and conditions of renewal which vary depending on the cases where fixed-term contracts are used. Your collective agreement can also include specific provisions. EMPLOYEE RIGHTS UNDER A FIXED-TERM CONTRACT During his/her contract, an employee under a fixed-term contract has the same rights as the other company employees in terms of working hours, salary, sick pay, election of staff representatives, benefits and so on. An employee under a fixed-term contract, with at least 6 months’ service, may ask the employer to keep him/her informed about permanent job opportunities. TERMINATION OF FIXED-TERM CONTRACT The fixed-term contract cannot be terminated early except in the event of agreement between the parties, serious misconduct or force majeure or if the employee can provide proof that he/she has been hired under a permanent contract. Aside from these cases, early termination of the contract results in the following : • The employer is required to pay damages to the employee which are at least equal to the sums the employee would have received until the end of the contract, • The employee may be ordered to pay damages to the employer for the loss sustained by the company. Before signing a fixed-term contract, assess your staffing needs and whether it is beneficial for you to choose this type of contract. Since 1 September 2022, bonus- malus mechanism is implemented on the employer unemployment contribution aimed at encouraging long-term employment and penalizing a succession of short-term contracts in some business sectors. SUCCESSIVE FIXED-TERM CONTRACTS A succession of fixed-term contracts can only be entered into for the same job if there is a period of time between the 2 contracts, as indicated below (with some exceptions) : • A third of the contract term, including renewals, for contracts with a term of more than 14 days, • Half of the contract term, including renewals, for contracts with a term of less than 14 days. Special arrangements may be stipulated by an extended collective agreement. END OF FIXED-TERM CONTRACT The fixed-term contract ends automatically at the end of the term mentioned. If the contract continues beyond the term, it becomes permanent (CDI). At the end of the contract, the employee receives : • A short-term contract allowance of 10 % of the total gross salary paid during the fixed-term contract (aside from exceptional cases), • A sum in lieu of paid holidays, irrespective of the length of the contract. Ask us, the employer must put in place a specific procedure when he wants the employment relationship on a fixed-term contract (CDD) to continue on a permanent contract (CDI) under the same conditions of employment. In fact, if a jobseeker has twice in the previous 12 months refused an offer of a permanent contract under these conditions, he or she will not be entitled to unemployment benefit.

© - ATH all rights reserved - Edition 2024 22 EMPLOYER’S GUIDE 2024 IMPLEMENTATION A part-time employee is an employee whose working hours are less than the statutory working hours (35 hours per week) or the hours determined by collective agreement if less. The minimum part-time working hours are set by an extended sector agreement, otherwise they are 24 hours per week. The employee can ask to work less than the minimum working hours due to personal constraints or in order to combine several activities. The following exceptions apply to minimum hours : students under the age of 26, private employer, fixed-term contract of 1 week maximum… Part-time work can be arranged by the employer by company agreement or otherwise by an extended sector agreement. Failing a collective agreement, it can be implemented by the employer after consulting the CSE. In the absence of a CSE, it can be arranged by the employer or at the request of employees after informing the employment inspectorate. Part-time work can be organised over the week, month or year, as part of the reduction of working hours for personal life demands or adjusted part-time hours. Employees under a part-time contract with less hours than the minimum are given priority for a job offering the minimum hours. The employer must give them the list of available posts. PART-TIME EMPLOYMENT CONTRACT A part-time employment contract can be signed for a non-fixed or fixed term. It must in all cases be in writing and include certain compulsory details including: the set weekly or monthly working hours, how they are arranged over the days of the week or weeks of the month, the cases where the arrangement of working hours can be adjusted, conditions under the employee is informed of his/her working hours for each day worked, the possibility of working overtime... Working hours can only be modified with the employee's agreement. If there is no written documentation or note of working hours, the contract is deemed to have been signed on a fulltime basis, plus the employer is liable for a category 5 fine (amount page 85). PART-TIME CONTRACT 10 What you need to know : A part-time employee is an employee whose working hours are less than those stipulated by the law or collective agreement applicable to the company. Minimum working hours must however be respected. The part-time employment contract must include specific information. The part-time employee has the same rights as full-time employees.

© - ATH all rights reserved - Edition 2024 23 2024 EMPLOYER’S GUIDE ORGANISATION OF WORKING HOURS Part-time employees have individualised working hours ; they must be informed in writing of their hours of work for each day worked. Employees must be informed of any changes to their weekly or monthly working hours within a 7 days notice period, unless a different notice period is stipulated by company or sector agreement. Working hours cannot include more than one break during the same day or a break of more than 2 hours, subject to other provisions stipulated by the company agreement or otherwise by an extended sector agreement. When employees work for several employers, total working hours must not exceed the maximum authorised hours. Ask us, your collective agreement may provide for the possibility of signing « additional hours » addenda to temporarily increase working hours of parttime employees. ADDITIONAL HOURS A part-time employee can work additional hours up to 10 % of the weekly or monthly working hours stipulated in the employment contract. A company agreement or otherwise an extended sector agreement can adjust this limit to 1/3 of the working hours stipulated in the contract but cannot have the effect of increasing working hours to the statutory or collective agreement working hours. The extended sector agreement can stipulate the extra rate of pay for each additional hour worked up to the limit of 1/3 of the contractual working hours. This rate cannot be less than 10 %. Unless stipulated in the collective agreement, the extra rate of pay for additional hours is 10 % for hours worked up to the limit of 1/10 of the hours stipulated in the contract and 25 % for each hour worked between 1/10 and 1/3 of the hours stipulated in the employment contract. The employee can refuse to work additional hours if they exceed the limits stipulated in the contract or if the employee has been notified less than 3 days before. The employment contract must be modified if, for a period of 12 consecutive weeks (or for 12 weeks during a period of 15 weeks), the average hours worked exceeded the hours initially stipulated in the contract by at least 2 hours per week. STATUS OF PART-TIME EMPLOYEE Part-time employees have the same rights as full-time employees : • The probation period cannot be longer than for full-time employees, • Length of service is calculated as if the employees had been employed full-time, • Paid holidays are earned and calculated according to the same terms as full-time employees, • Part-time employees can elect and are eligible for the roles of staff representatives under the common law conditions. They are included in staff numbers based on their hours of work. Their pay is proportional to that of a full-time employee with an equivalent job. They have a priority right to a full-time job in the company. Pay for additional hours benefits from a reduction of employee contributions and an income tax exemption up to an annual limit of € 7,500. Ask us about the possibility for a part-time employee to contribute to a pension plan and supplemental retirement scheme on a salary corresponding to full-time.