Risk of non-compliance with the minimum wage

The SMIC (minimum wage) has been revalued on October¹, 2021 (€10.48 instead of €10.25).

As a result, the remuneration of employees paid on the basis of the SMIC must also be readjusted.

Employers who fail to apply the SMIC may be subject to penalties:

• criminal penalties: €1,500 fine for each employee paid under illegal conditions
• civiles :
  • back pay
  • payment of interest on arrears when remuneration is not paid on time
  • payment of damages if the employer's bad faith causes harm to the employee

The same penalties seem to apply in the event of non-compliance with the agreed minimum wage.