Terms of recommendation: companies have finally won their freedom of choice

We may have had doubts about the wisdom of Father Christmas, but we somehow ignored the fact that he lived in rue de Montpensier. However, the ruling of the Constitutional Council passed on 19 December appears to have come directly out of Father Christmas’ sack: a vote of partial censorship on Article 14 of the 2014 Social Security Financing Bill was passed by these wise men, invalidating the tax arrangements thought up by the government in order to encourage terms of recommendation.

This decision did not come out of the blue: it’s the result of collective efforts on the part of insurance professionals and their clients. It is therefore a victory for the open market supporters, who, for several months, have rallied against any restrictive arrangements for their sector relating to the introduction of pension and supplementary healthcare cost group schemes. And it is a victory for companies, their business efficiency and the strength of their social interaction.

The Constitutional Council had already declared on two occasions, namely, the 13th June and 18th October last, that the introduction of an appointment clause infringed upon contractual freedom as well as freedom of choice. They consider that today the increase in the social contribution for companies which does not fall in line with the recommendations of their sector represents « a marked breach of equality in terms of public expenses», and also confirms that you cannot put a price on freedom, for those who may be in doubt about this.

When the Constitutional Council threw out the appointment clauses, the government crept back in through the window to reintroduce them. Let’s hope that they don’t risk going back down the chimney again : with or without white beards, the wise men of rue Montpensier have shown the strength of their determination…