Weakening of Dismissal Protection or Strengthening of Employment Policy in France?

The contrat première embauche (CPE—first hiringcontract) and the contract nouvelles embauches (CNE—contractfor new hiring), ie two new types of contract for permanentor open-ended employment, were introduced in France in 2005.Both contain specific provisions on dismissal protection andtrial periods which amount to the abrogation of the ordinarystatutory protection against dismissal. In the aftermath, Francewas hit by a wave of protests, especially on the part of theyounger generation, since the CPE legislation above all concernedthis group. Consequently, the CPE was revoked in 2006. The CNE,however, remains in force and the otherwise relevant dismissalprotection rules do not apply to it for a period of two years. The CNE is not only an additional model for the many forms ofemployment contract. It provides a new type of labour contractand is aimed at combating unemployment and achieving permanentemployment. This paper examines how the new types of employment contractaffect traditional dismissal protection law. In particular,recent court decisions concerning the CNE legislation are presentedin detail.