Manage French Profit Sharing Terms

Agreement (accord)

Defines the terms of the profit-sharing or worker's participation scheme. Several organizations, including staff representative bodies, are involved in approving agreements. Employees can view agreement definitions once an agreement is approved by the all the relevant organizations.

Agreement group

Defines the companies and establishments that share the same agreement.

Profit-sharing agreement (accord de participation aux résultats)

A type of agreement. The global fund for this type of agreement is dependent on company profits.

Worker's participation agreement (accord d'intéressement des salariés)

A type of agreement. The global fund for this type of agreement is dependent on achieving objectives that are defined in the agreement.

Global fund (réserve)

The amount that is shared between eligible employees. The global fund is calculated after the end of the reference period.

Distribution method (mode de répartition)

Defines how the global fund is shared between employees. The Manage French Profit Sharing business process supports these distribution methods:

• Uniform distribution divides the fund equally between eligible employees.

• Prorate with salary is based on employees' salaries.

• Prorate with working duration is based on the number of days that the employee worked in the reference period.

• Any combination of the above distribution methods.

Investment method (méthode d'investissement)

Defines how the global fund is invested. Investment methods vary according to the agreement type. Each agreement definition includes one or more investment methods. Employees can accept the default investment method defined for the agreement or select from the specified methods.

Reference period (période de référence)

Defines the period that the profit sharing calculations are based on. An agreement is valid for one or more reference periods. The profit sharing processes use company and establishment financial data and employee payroll data for a reference period to:

• Determine which employees are eligible for a share of the global fund.

• Calculate the global fund.

• Calculate employees' profit-sharing amount.

Unavailability period (période d'indisponibilité)

The period during which global funds are not available to employees. Profit-sharing agreements have a fixed period at the end of the reference period when employees cannot access, except in certain situations, their share of the global fund. Worker's participation agreements don't have an unavailability period; funds are available as soon as the compensation administrator runs the profit sharing processes and approves the results.