Enacted on April 15th, 2024, a new law aimed at enhancing volunteerism and simplifying the operations of non-profit organizations has come into effect. This legislation introduces several provisions to promote volunteer work and streamline the functioning of non-profits, particularly in financial matters.
One significant provision of this law is the addition of Article L.3142-131 to the labor code, enabling employees to contribute accrued but unused rest days to a chosen charity.
How does this system operate?
Employees, in agreement with their employers, can opt to forfeit unused rest days without receiving compensation. These days are then converted into monetary value by the employer and transferred to the chosen charity.
What types of rest days can be donated and what are the limits?
The law provides that employees can donate any unused rest days, regardless of whether they were allocated to a time savings account. The term “rest days” is broad and not limited to annual leave, suggesting that RTT days are also included in this measure.
The maximum number of rest days that can be donated will be determined by decree. However, the law already specifies that for the annual leave, only days corresponding to the 5th week of vacation can be donated.
What organization is eligible to benefit from these donations?
The organization that will benefit form this scheme must be defined by mutual agreement between the employee and the employer and chosen from among the organizations eligible for the income tax reduction for donations. It may include certain associations and foundations of public utility, and certain organizations of general interest.
Should you require any assistance for fulfilling your obligation , please do not hesitate to contact us.