Under the phrase travailler plus pour gagner plus Sarkozy introduced a measure in 2007 which cut taxes on overtime, but François Hollande has reversed the decision.
Taxation will now be reintroduced on the time worked beyond 35 hours starting from August 1, 2012, re-establishing one of the key Socialist ideals introduced by the current party secretary Martine Aubry in 2000.
The government has said that businesses with less than 20 workers will be able to keep the tax break on extra working hours, in an attempt to boost small firms.
It has been estimated that the tax break cost France €4.5bn in 2010, and many have questioned its effectiveness as studies showed low income families didn't see any benefits and unemployment has continued to rise.
The opposition UMP say that the spending power of workers has been reduced, with estimates claiming people will lose €42 a month from their pay packets.