Other news for July 2024

Product safety

The European regulation on general product safety has been amended by a regulation of May 10th, 2023, which has strengthened the obligations of manufacturers and importers in this area and improved the system for product recalls (other than food). As a result, a law was recently adopted to bring French regulations into line with the new European framework. As such, this law toughens the penalties incurred by manufacturers who do not comply with European rules on general product safety, in particular in the event of a violation of their obligations to withdraw or recall a dangerous product. Thus, a maximum sentence of 5 years in prison and a fine of up to €600,000 will now be incurred, compared to 2 years and €300,000 currently.

Farmland prices

In 2023, farmland prices rose again, but less sharply than in 2022. Thus, the price of free land and meadows (not built) increased by 1.5% to €6,200 per hectare on average. Land intended for field crops posted an average price of €7,710/ha (+4.8%) while land located in cattle breeding areas was worth €4,630/ha on average (-0.3%) in 2023. Of course, the price of vines is much higher, bearing in mind that it has increased again in the Protected Designation of Origin (AOP(1)) area: €153,500/ha on average (+1.5%). However, it decreased significantly in areas producing AOP eaux-de-vie (Cognac, Armagnac) to €56,600/ha (-6.4%), and more slightly for non-AOP vines (€15,000/ha, -1.8%).

Increase in the AGS(2) contribution

All employers must pay a contribution to guarantee the payment of the sums due to employees in the event of insolvency proceedings (receivership or judicial liquidation, in particular). The rate of this contribution, which applies to the remuneration paid to employees, is set by the Board of Directors of the Association for the Management of the Wage Guarantee Scheme (AGS), considering the economic situation and the number of business insolvencies. The AGS contribution rate has just been increased to 0.25% applicable as of July 1st, 2024.

Olympic Games and the use of short-time working

The organization of the Olympic and Paralympic Games in Paris, and the resulting restrictions on movement, may have an impact on business activity. In this respect, in a Q & A published on its website, the Ministry of Labor has already specified that the use of the short-time work scheme will apply in a very limited way. According to the Ministry, companies affected by the organization of the Olympic and Paralympic Games (except in the special case of construction companies for their postponed or cancelled construction sites, for example) cannot, in principle, resort to short-time working. Companies are therefore invited to anticipate these restrictions on movement and to choose alternative measures to short-time working, such as adapting working hours, using paid leave or teleworking, etc.

(1) Appellation d’Origine Protégée (AOP)

(2) Association pour la gestion du Régime de Garantie des Salaires (AGS)