The Time Savings Account: Approval has been granted for transforming of Bill No. 262 into a Draft Law.

Accueil - Publications - Monaco Labour Reform: Time Savings Account (CET) – Draft Law 2025

In a letter dated 28 May 2025, the Prince’s Government informed the President of the National Council that it had given its approval for transforming Bill No. 262 on the Time Savings Account (“Compte Epargne Temps”, or “CET”) into a draft law.

This text extends the CET regime, which was introduced into Monaco’s labor law by Law No. 1505 of June 24th, 2021. This law relates to concerted working time arrangements over a reference period longer than one week.

The objective is to furnish all employees with a flexible time management instrument, enabling them to accrue entitlements to remunerated leave. The CET may be credited with annual paid leave days exceeding the 24-day threshold, seniority leave, collective agreement leave entitlements, overtime rest days or monetary equivalents.

The CET also offers companies a distinct advantage by supporting greater flexibility in working time arrangements. It is particularly beneficial in ensuring a more effective alignment between the scheduling of leave and fluctuations in business activity, as it prevents unused leave days from being lost at the end of a period. Any unused leave days can be taken at a later date when workloads are lower. In addition, it functions as a method of employee retention.

The CET can be established through a collective bargaining agreement or, failing that, by a decision of the employer after consultation with trade union delegates or staff representatives.

The general operating procedures of the CET, the conditions of its funding, any potential employer contribution, and the terms of its use will be determined by the collective agreement or the employer’s decision.

In the event of termination of the employment contract, the employee is entitled to an indemnity payment. This payment is equivalent to the number of days accumulated in the CET, unless there is a provision in the collective agreement or in the employer’s decision to the contrary. The value of the day is assessed on the date of payment.

The draft law is to be submitted to the National Council no later than 5 June 2026.

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