French Prime Minister Dominique de Villepin has defended the law, saying it will help young people who are less qualified to find employment.
Speaking on French television, he said the First Employment Contract (CPE), passed by parliament on Thursday, would be a particular help to those living in the suburbs where the youth unemployment rate is up to 40%.
The contract is for under-26-year-olds and employers can terminate it at any time within the first two years, without giving a reason.
Bruno Julliard, of the UNEF student union, thinks that protest action will force the prime minister to change his mind over the new law, which comes into force in April.
