YOUTH EMPLOYMENT / NON-DISCRIMINATION : IS IT OK TO DISCRIMINATE IN THE NAME OF EMPLOYMENT?

Will the 'Contrat de premiere embauche (CPE)' [the first job contract], one of the measures trumpeted by the French government to tackle the unemployment problem among young people, pass muster at European level? The answer seems straightforward given the principle of subsidiarity that governs employment policies. But it does not take into account the latest EU goings-on in terms of non-discrimination - namely Directive 2000/78 and, more importantly, the recent Court ruling in the case of Mangold, which sets limits that all job-related reforms must comply with.

The ruling needs to read with care. Firstly, it is the first of its kind, dealing with two very sensitive subjects, employment - where policies are only co-ordinated - and non-discrimination, which has been a cornerstone and driving force in the 'European construction'. It is applicable when all member states have set about or are thinking about setting about labour market reforms , particularly at the two ends of the scale - the youth and the elderly. These are reforms which are at the heart of the 'social' strategy of Lisbon 2, proposed by the Barroso Commission.

As with most European countries, France is looking for ways to tackle youth unemployment, which is currently at around 20% but is even as high as 40% for some minority groups (although experts feel that this figure should be put in perspective given that most young people are still studying and therefore not available for work). The French Prime Minister Dominique De Villepin (UMP, French centre right party) has therefore proposed 'le contrat de premiere embauche' [a first job contract] for young people under 26 who are employed in companies with more than 20 staff. The project is still being discussed by the French parliament.

The CPE in a nutshell

The CPE is a standard open-ended contract but is different from normal working standards on one important point - the contract may be terminated, without any reason given, during a "consolidation period of a maximum of two years", which is essentially the same as a trial period of the same length(1). The CPE has certain conditions attached - the right to individual training after one month's service (one year in other contracts) and housing assistance by means of the 'Locapass' - which provides a deposit (refundable) and acts a guarantor. Should the CPE be terminated after four months, the young person has the right to a fixed allowance of 460 per month for two months, paid by...