France to fight joblessness by boosting temporary contracts

AP News
Posted: Jun 09, 2015 7:23 AM

PARIS (AP) — French Prime Minister Manuel Valls wants to allow employers to extend short-term job contracts, as the government gradually loosens labor restrictions in a bid to fight persistently high unemployment.

Generous protections on long-term contracts have discouraged hiring and foreign investment.

Under Valls' proposals, which need parliamentary approval, employers could extend temporary contracts twice. The total time on such a contract couldn't exceed 18 months.

It's a small but symbolic step in the Socialist government's efforts to loosen labor rules, which have angered unions.

French employers have increasingly resorted to short-term contracts, because long-term ones make it harder for them to lay employees off in times of financial stress.

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