France: New contract creates employment

A survey of 300 managers of very small enterprises, released at the end of December 2005, reveals that almost one-third of new recruits have been hired under a new type of employment contract.

The launch of a contract designed for new recruits (contrat nouvelles embauches - CNE) was one of the prime minister's measures to boost employment, announced in June 2005 (France: New employment measures). One of its main features is that either party can terminate it over an initial two-year period, without having to give a reason.