The profit-sharing to business results can be implemented in all companies, regardless of size. This optional mechanism should have a collective character, that is to say that all holders of an employment contract in the company could benefit. A condition of service (maximum three months) may be required. Business owners with fewer than 250 employees are involved in sharing and this, regardless of their status.

If a works council exists, the project must be submitted for review at least 15 days before the signing. Similarly, the profit-sharing agreement must be filed with the Direccte within 15 days from the date of its conclusion.The administration then has four months to request the withdrawal or amendment of provisions contrary to law.


Random and non-substitution

The incentive scheme must be of a random nature, that is to say, according to the results, be zero. To preserve this hazardit is imperative that agreement is reached before the first day of the second half of the period for calculating the date of its effective way, when you want to set up a system of Incentive for the years 2012-2014, it must be concluded before 1 July 2012.It should also respect the principle of non-substitution, which excludes the possibility of replacing any element of pay within the company, with performance incentives. This principle can be spread when a period of 12 months elapsed between the last payment of compensation element and the date of effect of the incentive agreement.

The modalities of implementation

The incentive agreement, concluded for a mandatory period of three years with possibility of providing a tacit renewal, can be implemented:

– By collective contract or agreement;

– By agreement in the Works;

– By agreement between the entrepreneur and the representatives of representative trade unions;

– Following the ratification by a majority of two thirds of staff, a draft contract proposed by the employer.

The incentive agreement must contain certain mandatory provisions, including the criteria for allocation of profit-sharing, payment dates, the duration of the agreement or the formula chosen.