Paid Leave: Explanations, Rights, and Calculations

The organization of paid leave can sometimes cause confusion, particularly when it is not governed by a company agreement or the applicable collective agreement. In such cases, the employer remains the sole decision-maker regarding the scheduling of leave, while still adhering to legal rules.

This article aims to provide an overview of the rules to follow, both regarding the accrual of paid leave and its organization, while taking into account the obligations of both the employer and employees.
 

Accrual of Paid Leave

In France, all employees are entitled to paid leave, regardless of their status (full-time, part-time, annualized hours, etc.). This right is regulated by law.

5 Weeks of Paid Leave per Year 

Employees are entitled to a main leave of 5 weeks per year, which translates to:

• 2.5 working days per month (30 working days per year),
• 2,08 days per month if leave is counted in working days (25 working days per year).

It is important to highlight that this right to accrued paid leave is identical for all employees, whether full-time or part-time, regardless of the length of their weekly working hours.

Calculation of Paid Leave: Number of Days and Reference Period 

Paid leave is typically accrued over a reference period from June 1st of year N to May 31st of year N+1. Each month worked entitles the employee to 2.5 working days of leave (30 working days for a full year).

Employees must also check their pay slip to ensure that the number of paid leave days they have accrued is correctly stated and in accordance with the law.

Leave not taken by the end of this period is not automatically carried over, except in specific cases (see below). If the employee could not take their leave due to the employer's actions, the employer is required to grant the leave as a priority.

Organization of Leave: How Does It Work?  

Period for Taking Leave

Paid leave must be organized within a specific framework:

• From May 1st to October 31st each year.
• Prior notification to employees: The employer must inform employees, by any means, about the opening of this period at least two months in advance, i.e., before March 1st.

Criteria for Organizing Leave Schedules

The employer must consider several criteria when determining the order in which employees take leave:

• The employee’s family situation (partner's leave, dependent children, etc.),
• The employee’s seniority within the company,
• The employee's activity with other employers.

Communicating the Leave Schedule

The employer is required to communicate the leave schedule to employees at least one month before their scheduled departure. After this deadline, the employer cannot change the leave dates, except in exceptional circumstances.

In companies with at least 11 employees, the Social and Economic Committee (CSE) must be consulted about the leave schedule and the company’s closure dates. This consultation ensures an equitable distribution of leave among all employees.

Duration of Paid Leave and Splitting 

Taking Leave Within the Legal Period 

The employer must allow each employee to take 4 weeks of paid leave during the legal period from May 1st to October 31st, including 2 consecutive weeks between two Sundays.

If an employee cannot take all 4 weeks of leave during this period, additional leave for splitting may be granted under the following conditions:

• 2 extra working days if the remaining leave taken outside the period is at least 6 days,
• 1 extra working day if the remaining leave is between 3 and 5 days.

The fifth week of leave cannot be attached to the first four weeks and does not entitle the employee to splitting.

Waiving Split Days: The employer must obtain written consent from the employee to waive these split days. Otherwise, this waiver has no legal value, and the employer cannot claim that the employee has waived the days.

Paid Leave and Sick Leave

 The rulings of the Court of Cassation on September 13, 2023, led to the inapplicability of French provisions that conflicted with European Union (EU) law concerning the accrual of paid leave during non-work-related illness, as well as for work-related accidents and illnesses.

The law of April 22, 2024, which adapts various aspects of French law to EU law (DDADUE),  aligns the French labor code regarding paid leave accrual during non-work-related illness. These new provisions came into effect on April 24, 2024

Accrual of Paid Leave During a Sick Leave

With the law of April 24, 2024, "ordinary" sick leave is now considered a period of effective work for the purpose of determining paid leave duration. Work-related accidents (AT) and professional illnesses (MP), which were previously limited to one year, are no longer restricted in this way.

As for the number of paid leave days accrued:

• For non-work-related sick leave: 2 working days per month, up to a maximum of 24 working days. This corresponds to the four annual weeks of paid leave guaranteed by Article 7 of Directive 2003/88/EC of November 4, 2023 (Code du travail, articles : L.3141-5, 7* nouveau, L. 3141-5-1 nouveau)
• For sick leave following a work-related accident or professional illness: 2.5 days per month, under the same conditions as for employees actually present, with no duration limit (Code du travail, articles : L.3141-5-5* modifié, L.3141-3)

Paid Leave Compensation

According to L.3141-24, I of the Code de travail, the amount of the paid leave indemnity is calculated based on the most advantageous method for the employee:

• Either the salary maintenance rule: the salary the employee would have earned if they had continued to work,
• Or the tenth rule: one-tenth of the total gross remuneration received by the employee during the reference period in which the paid leave was accrued.

With the new Article L.3141-24, I, 4 of the Labor Code, the tenth rule has been adjusted: the remuneration corresponding to periods of sick leave is now taken into account at 80% – instead of 100% – in the calculation of the paid leave indemnity.

Note: This tenth rule must always be compared with the salary maintenance rule.

Employee Notification Upon Returning from Sick Leave Regarding Their Leave Entitlements

Once an employee’s sick leave (whether due to illness or accident, whether work-related or not) ends, the employer must, within one month of the employee’s return to work, provide the following information:

• The number of leave days available to the employee,
• The date by which these leave days must be taken.

This information must be provided in a way that ensures proof of receipt (e.g., through a pay slip).

This duty of notification applies to all types of sick leave, regardless of duration. The employer must be able to provide proof of the information being given.

Carrying Over Leave 

The law allows the carryover of unused paid leave with no time limit in certain situations:

• Maternity or adoption leave,
• Paternity and child care leave,
• Parental education leave,
• Parental presence leave,
• Illness or accident (work-related or non-work-related), with the possibility of limiting the carryover period to one that is "substantially" longer than the duration of the reference period in which the leave was accrued. This was provided for by previous case law before the law of April 22, 2024.

With the law of April 24, 2024, modifications were made.

A worker who is unable – due to illness or an accident, whether professional or not – to take all or part of the paid leave they have accrued during the leave-taking period now benefits from a maximum deferral period of 15 months to use it. If the leave is not taken during this period, it is permanently lost.

This 15-month deferral period begins on the date the employee receives from the employer – after returning to work – information about the number of days of leave they have and the date by which they must take it.

Furthermore, a company, establishment agreement, or a branch agreement may set a deferral period longer than 15 months. However, it cannot set a shorter date. There are specific cases:

• If the employee has been on sick leave or accident leave – professional or not – for at least a year by the end of the reference period during which the leave was acquired, the 15-month period begins at the end of that acquisition period, even if the employee is still on sick leave.
• If the employee has been on sick leave or accident leave – professional or not – for more than a year, the deferral period starts while the employee is still on leave, without waiting for their return to work or providing information to the employee. This deferral period begins at the end of the period in which the leave rights were acquired. In addition:

1. If there is no return to work before the deferral period ends, the paid leave is lost. There is a legal limit on the accumulation of leave rights in cases of long-term absences.
2. If the employee returns to work during the deferral period, the deferral period is suspended until the employer fulfills their obligation to provide the necessary information.

Employer and Employee Obligations

Leave: A Right and a Rest Obligation

Paid leave is not only a right; it is also an obligation to rest. Consequently, the employee must respect the dates for taking leave set by the employer and refrain from any professional activity during this period. The employer must also ensure that the employee can effectively take their paid leave.

Employer Responsibility in Terms of Health and Safety

The employer must ensure the health and safety of their employees and, in this regard, must ensure that each employee actually takes their leave.

If an employee refuses to take their leave, especially due to excessive workload, it is the employer’s responsibility to ensure the situation is corrected. The employer must then reduce the workload to allow the employee to take their leave. A failure to meet this obligation could hold the employer liable, as the refusal to take leave represents a risk to the employee's health and the safety of other workers.

No Substitution of Leave with an Indemnity

Finally, it is important to note that paid leave cannot be replaced with an indemnity, except in the case of a termination of employment. The goal is to guarantee employees real rest time, which is essential for their well-being and productivity.

The organization of paid leave is governed by specific rules aimed at ensuring employees' rights while allowing for effective management by the employer. By adhering to acquisition criteria, the leave-taking period, and the splitting of leave, the employer ensures compliance with the law while maintaining a healthy and balanced working environment for employees.

Ensure a clear and fair management of paid leave to avoid disputes and foster a peaceful working atmosphere within your organization. By regularly verifying the calculation of paid leave on the payslip, you also guarantee that employees' rights regarding their paid leave are respected.