The Law for the Promotion of Labour, Employment and Purchasing Power in August 2007 allowed employees in France to benefit from tax and social security contribution exemptions for overtime hours. This law was introduced to encourage employees to work overtime hours to increase their monthly wage and increase their buying power as a result.
One of François Hollande's pre-election proposals was to reintroduce the liability to tax and social security contributions for overtime hours. Small firms (firms with fewer than 20 employees) are not, however, affected by this proposal.
As the new French president, François Hollande is almost certain to pass this reform. According to him, the reform would promote the recruitment of new employees instead of relying on existing employees to work overtime.