The LOM law: what impact for companies?

The law on the orientation of mobility (LOM) was published on 26 December 2019. There are two main measures for companies: reinforcing the requirement for employer mobility plans and creating the Forfait mobilités durables.

Employee mobility in companies

The adoption of the Loi d'Orientation des Mobilités (LOM) on 24 December 2019, modifies the legal framework for the involvement of companies in the support of their employees' home-work journeys: reinforcement of the requirement for employer mobility plans and creation of the Forfait mobilités durables.

The Law No. 2019-1428 of 24 December 2019 on the orientation of mobility (OJ of 26 December) requires companies with more than 50 employees working on the same site to include a mobility component in the mandatory annual salary negotiations (NAO) with the social partners since 1 January 2020. Failing this, an Employer Mobility Plan (PDME) must be drawn up.

What the LOM changes for businesses

Before the LOM in December 2019

Before the LOM came into force, all companies with more than 100 employees were required to produce a Mobility Plan (PDM). This MDP had to be sent to the territorially competent mobility organising authority. Companies located on the same site could draw up an inter-company MDP. 

 The company that complied with this provision could benefit, under certain conditions, from the technical and financial support of the Agency for Ecological Transition (ADEME).

After the LOM in December 2019

The LOM requires that commuting issues be discussed in mandatory negotiations with the social partners. If these negotiations are not successful, the company must draw up an Employer Mobility Plan (EMP).

By including the issue of home-work journeys in the negotiations with the social partners, the government is emphasising the social aspect, rather than the environmental and organisational aspect (reduction of air pollution and transport desaturation), which has been more prominent in the implementation of mobility plans up to now.

For companies, this requires a more cross-functional approach with issues of rationalisation of travel, reduction of nuisance (pollution, noise), but also of well-being and purchasing power of employees.

For companies with more than 100 employees on a single site

For companies with more than 100 employees on the same site, which were subject to the obligation to draw up a Mobility Plan (MP), this is rather a simplification:

• the disappearance of an additional mandatory document;
• the creation of a new heading to be added to the negotiations with the social partners which were already required of them.

For companies with between 50 and 100 employees

For companies with between 50 and 100 employees, which were not covered by the Mobility Plan (MP):

• a new obligation to be taken into account ; 
• the creation of a new heading to be added to the negotiations with the social partners which were already required of them.

For companies with less than 50 employees

• no new obligation to formalise their involvement in the issue of commuting; 
• Employee mobility remains an important issue in the daily lives of employees and the smallest companies are also concerned by the various measures put in place (sustainable mobility package, mobility vouchers, etc.).

Employers' contribution to employee travel. The Sustainable Commuting

The LOM provides for a number of new tax-free tools, such as the Forfait mobilités durables, to complement the existing ones. 

The implementation of the Sustainable Mobility Package is optional. The benefits of such a voluntary approach are many: improvement of the company's image, both with employees and with customers; identification of savings; contribution to the improvement of employees' well-being at work; improvement of the company's attractiveness.