REMINDER: EMPLOYERS ARE OBLIGATED TO REIMBURSE EMPLOYEE TRAVEL COSTS REGARDLESS OF THE DISTANCE BETWEEN THE EMPLOYEE’S RESIDENCE AND THE WORKPLACE
According to the French National Association of Human Resources (HR) Directors, since the rise of remote work during the COVID-19 pandemic, 30% of HR directors are facing requests from employees regarding a potential change of residence1.
The French Labor Code requires employers to reimburse 50% of the cost of tickets purchased by employees for travel by public transport between their usual residence and their place of work whatever the distance between this residence and the place of work.
A decision of 5 July 2022, rendered by the Paris Court of Justice supports the principle of the employee’s free choice of residence. The decision is a reminder that the employer cannot validly refuse to reimburse public transport costs on the ground that the employee has chosen to move away from their place of work for personal reasons.
However, this decision was rendered in relation to facts prior to the health crisis. With remote work now more prevalent following the pandemic, it is likely that more litigation will result.
The requirement to reimburse half of employee travel costs is on top of any specific relocation bonus, relocation voucher, or other financial assistance to employees provided for by the applicable collective bargaining agreement or set up by the employee representative institution (Social and Economic Committee/Works...
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