French Parliament adopts comprehensive anti-fraud law targeting social and tax fraud
The French Senate gave final approval on Monday, May 11, to a sweeping anti-fraud bill that the government says will bring 1.5 billion euros into state coffers. The legislation, which grew from 27 articles to more than 100 during parliamentary debates, includes measures to suspend unemployment benefits, tighten controls on social welfare fraud, and create a new “flagrance sociale” procedure for businesses suspected of undeclared work. Left-wing lawmakers criticized the text for targeting individuals more heavily than corporations.
The French Senate gave final approval on Monday, May 11 to a comprehensive anti-fraud bill that the government says will bring 1.5 billion euros into state coffers. The legislation, presented to the Council of Ministers in mid-October, grew from 27 articles to more than 100 during parliamentary debates. It was passed by the National Assembly in early May with support from the government coalition and the far right. Left-wing lawmakers criticized the text for targeting social fraud more heavily than tax fraud, a disparity they said was further deepened after the joint committee (CMP) review.
The bill allows the suspension of unemployment benefits when France Travail has "serious indications of fraudulent maneuvers, deliberate failure to meet obligations, or commission of offenses" by the beneficiary. The suspension is limited to a maximum of three months and allows for appeal. The government supported left-wing amendments to ensure the suspension does not deprive the beneficiary of resources necessary for household expenses. A decree from the Council of State will determine implementation modalities.
The joint committee dropped an earlier provision that would have automated penalties for social welfare fraud, citing the principle of individual sentencing. However, the penalty ceiling for repeat offenses was raised. The law extends access to tax and asset information for various agencies, including bank statements for RSA fraud checks. Health Insurance may use users' computer connection data to confirm potential fraud.
A new "flagrance sociale" procedure allows seizure of assets of companies suspected of undeclared work, with a 48-hour delay before enforcement. Training organizations may be required to refund funds if trainers lack required qualifications. People using their personal training account (CPF) must attend certification exams or repay the funds. The law imposes a duty of vigilance on VTC platforms to ensure contracted operators do not engage in undeclared work or employ unauthorized workers. Companies transporting patients must equip vehicles with geolocation devices to verify actual transport.
Telemedicine sick leave renewals for less than three days are limited to one renewal, except for cases such as prescription by a treating physician. People on sick leave must report any change of address.