Profit-sharing, participation, what are your rights?

In terms of bonuses profit-sharing or profit-sharing, qWhat are the rights of employees? Employers have until the end of the month to pay them to employees. Julien Niquet is the co-founder and chairman of Epsor, a specialist in employee savings.

franceinfo: profit-sharing, participation, what are the differences?

Julien Niquet: These are two mechanisms that are quite complementary and quite close. It’s about sharing value in the business. They make it possible to redistribute part of the financial added value that will be created by the company.

Participation is a share of the company’s financial results that will be distributed to employees. Profit-sharing is more about collective objectives that we will set, and if they are achieved, we will reward employees through a bonus.

What is the proportion of companies that use these systems?

The vast majority of very large companies have their employees benefit from these schemes. We are more than 90% large companies. Where the shoe pinches is on VSEs and SMEs, and in particular on companies with less than 10 employees, we oscillate between 20 and 30%, and it is difficult to go beyond.

The employer has until the end of May to pay the bonuses. What if he doesn’t?

To be very specific, it has up to five months until the end of the fiscal year, so if it’s set to the calendar year, we are of course the end of May, but we also have companies that are on staggered fiscal years. If it exceeds the deadline, there may be late payment interest which will be paid to the collaborators, but there is often a leeway until June or July to pay the bonuses.

What should employees do?

Each employee has the choice, either to take his bonus immediately from his bank account, or to have it paid into savings plans made available to him by his company. These are company savings plans, PEE or PER, retirement savings plan.

If premiums go to a savings plan, how long are they locked in?

On an employee savings plan, it is blocked for five years. Retirement savings plan, until retirement.

In which cases can you still unlock your savings?

It is the fact of breaking the employment contract, whatever the reason, there is the purchase of the main residence, there is the civil partnership, marriage and divorce, which are the three most used situations. There is also over-indebtedness.

And if I get my bonus right away, will I pay taxes?

Yes it will enter the taxable envelope and therefore subject to income tax.

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