French President Jacques Chirac has said he would proceed with the signing into law of controversial proposals for youth employment, but with amendments.
The amendments would weaken some of the most disputed aspects.
In a televised speech, Mr Chirac said it was time to defuse the situation following days of nationwide protests by young people against the proposed legislation.
He said the amendments would shorten to one year the period in which young people could be fired and would require employers to give a reason for dismissal.
Yesterday, France's Constitutional Council approved the government's youth jobs law, leaving it up to the president to sign in or withdraw the act.
Student and trade unions mobilised in recent weeks in protests demanding the law be withdrawn, but Prime Minister Dominique de Villepin insisted the law was necessary to reform France's rigid labour laws to create more jobs.