I had a nice phone interview a couple of weeks ago with a journalist from Les Echos, the French premier financial newspaper. She wanted to know whether entrepreneurs supported or not the "CNE", a new form of employment contract in France turning ONE year old. It basically allows an employer to have a 2 year trial period instead of just 3 months. Supposedly it helps manage labour friction and fire people more easily if the economic activity of the company justifies the cost savings.
I personally do not like this contract, because
1) on the one hand, it puts the burden of the economic activity of the company on the employee and not on its managers. Indeed, after a 3 month trial period, any manager should know whether an employee will fit in the company. There is even a provision under current French law to extend the trial period to 6 months. I've used it a couple of times, and we've never kept the person. Hence, 3 months should be enough. There is no need for 2 years to test a person's capacity.
2) on the other hand, even though we had a 2 year trial period, what if you wanted to fire the person after 2,5 years for instance if the economic conditions justify it ? In France it's very complicated to do so, and you usually end up justifying yourself to a government organization (DDTE), and paying up to 6 months severance package. We need more flexibility here. In Spain, where we have a subsidiary, there is ONLY a 15 days notice (both for the employer and the employee) to end a job contract. Although it's sometimes not desirable for an employer, it allows for a very fluid job market. And of course, sometimes even 15 days is too much a time. I understand that it's also 15 days notice in the US ? and sometimes on the spot (the "you're fired" you see in movies :(
Hence, in my opinion, the CNE contract doesn't address the issues of the current job market. What we need it
- a simplification of job contracts (we have lots of different ones)
- more flexible termination criterion.
Otherwise job creation will move to markets that naturally favor employers...