Unintended Effects of Employment Laws
The idea of getting a start-up off the ground makes me think of working lots of late nights and weekends to get things ready on time. I think that many of you would agree that we have been brought up with the notion of doing whatever it takes to make sure things get done. This same concept of working late on projects does not translate across the Atlantic in France as many entrepreneurs are finding out.
The article Working in France, in Style of Silicon Valley describes the issues facing hopeful entrepreneurs in France. Many of them have come to the United States, often to Seattle to learn the culture and ways of the start-up world. There are many adjustments they must make to utilize their knowledge in their native France. The first major issue is the "no-failure" culture of France. This is not an employment law issue, but it is worth mentioning that the French culture does not have room for the "American approach of if-at-first-you-don't-succeed." The other problem facing entrepreneurs and their start-ups is an employment issue. French employment law requires a 35-hour work week. While that may sound great to those of us planning on working upwards of 60-hour weeks in a few years, it spells disaster for a start-up. Jacques Souquet is two years into his start-up, a company planning a medical device as described in the NYT article. He tells the story of asking an employee to come in on a weekend once and the furious reaction from his lawyer who feared penalties from the government.
I had never considered that an employment law like this could completely alter the playing field for businesses. I'm sure that the French government did not think they would be harming start-ups in their country when passing the 35-hour work week regulations, but the entire culture that this law represents makes it difficult for entrepreneurs to keep up and be successful. Are there other laws/regulations (either abroad or here in the United States) that you think have a similar unintended effect on businesses?
The article Working in France, in Style of Silicon Valley describes the issues facing hopeful entrepreneurs in France. Many of them have come to the United States, often to Seattle to learn the culture and ways of the start-up world. There are many adjustments they must make to utilize their knowledge in their native France. The first major issue is the "no-failure" culture of France. This is not an employment law issue, but it is worth mentioning that the French culture does not have room for the "American approach of if-at-first-you-don't-succeed." The other problem facing entrepreneurs and their start-ups is an employment issue. French employment law requires a 35-hour work week. While that may sound great to those of us planning on working upwards of 60-hour weeks in a few years, it spells disaster for a start-up. Jacques Souquet is two years into his start-up, a company planning a medical device as described in the NYT article. He tells the story of asking an employee to come in on a weekend once and the furious reaction from his lawyer who feared penalties from the government.
I had never considered that an employment law like this could completely alter the playing field for businesses. I'm sure that the French government did not think they would be harming start-ups in their country when passing the 35-hour work week regulations, but the entire culture that this law represents makes it difficult for entrepreneurs to keep up and be successful. Are there other laws/regulations (either abroad or here in the United States) that you think have a similar unintended effect on businesses?
posted by stevie at
9:46 AM
1 Comments:
You will hear arguments that minimum wage and overtime pay rules inhibit market entry and hit small and new businesses particularly hard.
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