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Labour Law Under European Influence

By 17 July 2025No Comments
labour law

Labour Law Under European Influence

 

The Hierarchy of Norms in French and European Law

The hierarchy of norms is a fundamental pillar of modern law. According to this theory, legal norms are organized in a pyramidal structure, where each level derives its validity from the one above:

  • At the top of this hierarchy are constitutional norms: in France, this refers to the 1958 constitutional text as well as the bloc de constitutionnalité, which notably includes the 1789 Declaration of the Rights of Man and of the Citizen, the 1946 Preamble, and the 2004 Environmental Charter.
  • Next come supranational norms, the most prominent in France being those governed by the European Convention on Human Rights and European Union law.
  • This hierarchy is further enriched by the integration of European Directives, legislative acts that bind EU Member States regarding the objectives to be achieved, while leaving national authorities the choice of form and means. Once adopted at the European level, directives must be transposed into the domestic law of Member States within a set timeframe.

A Tangible Influence on French Labour Law

Labour law is not immune to these European influences: the letter of formal notice sent to France by the European Commission on June 18 is yet another illustration of this.

The Pereda Ruling and the Postponement of Leave in Case of Illness

According to consistent case law of the CJEU, notably in the Pereda judgment (CJEU, 10 Sept. 2009, Case C-277/08), an employee who falls ill before or during their paid leave must have the possibility to postpone the days of leave not actually taken.

The Court recalls that the purpose of paid leave is to allow real rest and relaxation. This objective is incompatible with a period of incapacity for work.

A Divergence from the French Labour Code

However, the French Labour Code does not provide for the automatic suspension or postponement of paid leave when an employee falls ill during their vacation. What matters is the first cause of suspension of the contract.

In the letter of formal notice sent to France on June 18, 2025, the European Commission considers that this shortcoming constitutes a clear violation of Directive 2003/88/EC on working time. According to the Commission, it deprives French workers of the effectiveness of their right to paid leave.

A Potential Reform of the Law?

This infringement procedure aims to compel France to amend its domestic legislation in order to:

  • Allow the automatic postponement of leave affected by illness occurring during the leave period;

  • Ensure that employees can effectively benefit from the rest to which they are entitled.

France has two months to respond to this letter of formal notice and address the deficiencies identified by the Commission. This infringement procedure may lead to sanctions if France fails to comply. The Commission may refer the matter to the Court of Justice of the European Union (CJEU) to seek a ruling for failure to fulfil obligations, with possible financial penalties until compliance is achieved.

Toward a Clarification of Leave Rights in Case of Illness?

This injunction follows a CJEU ruling which had already established that employees on sick leave must continue to accrue paid leave. It is based on the right to rest and health (Directive 2003/88/EC). This decision contradicted French law.

Indeed, French law only allowed for such accrual in the case of work-related sick leave. This led to a legal reform, introduced by the law of April 22, 2024, which amended Article L.3141-5 of the Labour Code.

Legal Certainty and Balance for Employers

All of this generates legal uncertainty for French companies. The economic and financial stakes are significant.

Rather than undergoing a reform imposed by judicial means, it may be preferable to anticipate this legal evolution. It would be possible to frame the postponement of leave under strict, verifiable, and balanced conditions. This would ensure compliance with European case law without creating operational insecurity for employers.

This is not about an unlimited expansion of rights. It is a necessary clarification to ensure a clear, fair framework that aligns with France’s European commitments.

A reform without altering the underlying law, but better applied, is within reach. It remains to choose coherence and legal certainty.

Matthieu de Soultrait
Partner Attorney

Vincent Logothetis
Legal Intern