Is Article 11 of Law N°739 of 16 March 1963 related to minimum wages parity with the neighboring economic region still relevant?

For many years, Law N°739 related to wages was seen as a contributing factor to social peace in the Principality. The application of the wages parity principle, determined in its Article 11, avoided to Monegasque employers and employees to systematically refer to wages negotiations - which may be problematic.

The mechanism set by this text fully worked without causing theoretical and practical difficulties until the entry into force in France of the Laws of 13 June 1998 and 19 January 2000, called "Aubry Acts I and II", which reduced legal working hours to 35 hours per week - instead of the 39 hours applied since 1983.

These texts include derogating measures for work organization, facilitated by social costs relief. Their application involved a breach of equality between French and Monegasque companies from an organizational, legal and economic point of view and impacted the wage parity principle, especially on the minimum wages determination applicable in Monaco.

Today, this question is subject to numerous litigations. The employment law team remains available to inform you on the scope of the last decisions taken by Monegasque courts on the matter and the obligations of Monegasque employers and employee’s rights.

By Sophie Marquet et Emmanuel Sanchis

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