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To safeguard the pay-as-you-go pension system, Law No. 2014-40 of January 20, 2014, on guaranteeing the future and fairness of the pension system was enacted. This reform aims in particular to better address the management of occupational hardship at work.
In this context, the law adds a new Title VI to Book I of Part Four of the Labor Code, titled "Special provisions for certain occupational risk factors and hardship," consisting of three chapters that take effect on January 1, 2015.
Chapter I: "Exposure prevention record" (Articles L. 4161-1 to L. 4161-2)
Article L. 4121-3-1 of the Labor Code, which defines the principle of creating an occupational hardship prevention record, has been moved to the newly created Article L. 4161-1. Beyond minor formal changes to the former Article L. 4121-3-1, the key update is the explicit requirement that the employer must create a prevention record for every employee exposed to one or more occupational risk factors "beyond certain thresholds, after the application of collective and individual protective measures." These thresholds will be defined by decree, which is expected to be published in the coming months. This individual record must be provided annually by the employer to the employee and to the CARSAT (or MSA).
This new Article L. 4161-1 requires user companies to provide temporary employment agencies with the information necessary for the latter to establish individual hardship prevention records for their staff.
Article L. 4161-2 states that standard situations defined by extended collective branch agreements (referencing job roles and the collective and individual protective measures applied) may be used to help employers determine whether exposures exceed the thresholds for the purpose of creating the prevention record.
Chapter II: "Personal occupational hardship prevention account" (Articles L. 4162-1 to L. 4162-22)
The law provides for the creation of a personal account for hardship prevention. Any employee who, after the application of collective and individual protective measures, is exposed to at least one hardship factor beyond the exposure thresholds will have their account credited with a certain number of points. This allocation is based on the employee's exposures as declared by the employer in the individual record.
This chapter introduces the procedures for opening, funding, using, and managing the personal hardship prevention account, as well as its financing and its relationship with the exposure prevention record and hardship prevention agreements.
The decrees establishing the procedures for crediting points to the account, the maximum number of points that can be earned, and the definition of point values have not yet been issued.
Employees will be able to access an information website to check, among other things, the number of points they have earned or used.
The fund responsible for financing the rights associated with the personal hardship prevention account will be funded by two employer contributions, one of which will apply only to employers who have exposed at least one of their employees to occupational hardship.
According to information on the government portal, each quarter of exposure to a hardship factor earns one point. The maximum number of points is 100. Points can be used at the employee's discretion: the first 20 points can be used for professional retraining in a less strenuous role. The remaining 80 points can be converted into part-time work paid at a full-time rate for a period chosen by the employee, or used to facilitate a phased retirement, for example. Finally, points can be converted into early retirement.
This system therefore complements the one created in 2010, which provided for early retirement in the event of a permanent partial disability of at least 10%.
Chapter III "Agreements for the prevention and management of occupational hardship" (Articles L. 4163-1 to L. 4163-4)
The provisions relating to agreements for occupational hardship and introduced in this Chapter III correspond to the requirements set out in Articles L. 138-29 to L. 138-31 of the Social Security Code, which have been moved to Title VI of the Labor Code without any substantive changes. Consequently, certain companies are required to conclude an agreement or develop an action plan regarding the prevention of occupational hardship.
The companies concerned (private companies, Industrial and Commercial Public Establishments, and administrative public establishments employing staff under private law conditions) are those with at least 50 employees where more than 50% of the workforce is exposed to at least one of the hardship factors beyond the exposure thresholds.
In the event of non-compliance with this requirement, the text provides for a penalty of up to 1% of the remuneration or earnings paid to the relevant employees or equivalent staff during the periods for which the company is not covered by an agreement or action plan. These articles also establish a framework for the conditions of development and the content of such agreements and action plans. A decree specifies these latter provisions.
Note: this legislative part of the Labor Code establishes the operating principles. We invite you to read our specific article on managing occupational hardship at work to learn more.