Dividend Premiums – Status Quo


Most companies close their accounts at the end of the fiscal year on December 31st. It is thus the moment to determine whether payment of a “dividend premium” to employees is required. Since January 1st, 2011, a decision to distribute dividends to shareholders generally requires payment of a dividend premium to employees. Although the French Prime Minister announced last July that this law would be repealed, it remains in place. Companies therefore must remain vigilant as to its application.

Which companies are eligible?

The obligation to pay a “dividend premium” applies to French commercial companies whose workforce is composed, on a regular basis, of at least 50 salaried employees. Employee count is made according to the same rules as for the existing compulsory profit sharing scheme as defined in the Labor Code.

Commercial companies controlled by the State are also subject to the dividend premium rule, under specific conditions.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© K&L Gates LLP | Attorney Advertising

Written by:


K&L Gates LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.