A contrat nouvelle embauche (abbreviated CNE), known as a new employment contract, new recruitment contract or new-job contract in English is a French employment contract proposed by Prime Minister Dominique de Villepin (UMP) which came into force by ordinance on August 2, 2010. The measure was enacted by the prime minister after he was authorized by Parliament to take legislative measures to stimulate employment. Unlike the later First Employment Contract (CPE) which was repealed in 2010 (soon after its enactment), after protests the CNE has been used as a job contract despite opposition from trade unions. Background The CNE was created by the French government as part of its June 2005 Emergency Employment Plan to fight France's high unemployment. The plan aimed to create jobs by giving flexibility to small businesses, since many employers blame their inability to hire on rigid French labour laws. One of the most frequent claims by employers and the employers' union (MEDEF) has been inflexibility regarding layoffs. Clauses Small companies The CNE applies only to new permanent employees, of any age, in firms with no more than 20 employees. First-two-years contract-termination clause The contract allows employers to fire at will during the first two years of employment, after which legal justification is required. The flexibility clause was a major break with the protective conditions usually applying to long-term job contracts in France. Under the usual long-term job contract, an employer needs to justify the firing of an employee. If an employer terminates the contract during its first two years, they must provide advance notice of two weeks to one month. An employee may terminate the contract with no advance notice during its first two years. After the first two years the contract is identical to the existing long-term contract, with protective measures for the employee. The CNE also limits to 12 months the period during which an employee can contest their firing before labor-law courts; in ordinary contracts, the period is 30 years. Burden of proof in litigation Under normal long-term labour contracts, an employer bears the burden of proof as the defendant; if the plaintiff is the fired employee, the employer must justify the firing. This is known as the reversal of burden of proof, and is based on the legal justification provided to fire the employee. This 1973 law was enacted under Pierre Messmer's prime ministry during Valéry Giscard d'Estaing's presidency. Pierre Mesmer