The bill, which has prompted weeks of nationwide protsests from unions and student groups, would free up hire and fire conditions for employers.
French parliament approved a second extension of the powers, introduced after the November 13th Paris terrorist attacks, until May 26th.
If adopted definitively, the bill will enshrine state of emergency into France’s constitution and strip French nationality from convicted terrorists.
French lower house approves by a margin of 14 votes the measure to be written into the constitution and which has divided ruling socialist camp.
As MPs debate joining attacks on Islamic State group in Syria, France regards a 'yes' vote as being of high military and diplomatic importance.
France's lower and upper houses voted by strong majorities to approve the controversial 86 billion-euro debt bailout plan agreed on Monday.
Manuel Valls told French parliament said keeping Greece in euro and EU "is something of the utmost geostrategic and geopolitical importance".
Controversial law will broaden eavesdropping of terror suspects despite protests from human rights groups about impact on civil liberties.
The National Assembly approved by 438 votes to 86 a bill giving the state wide-ranging spying powers, strongly decried by rights' groups.
The no-confidence motion was triggered by the socialist government's use of a decree to force through pro-business reforms after a leftist revolt.
A near-total majority of French MPs voted in favour of continuing the country's air strikes against Islamic State forces in Iraq and Syria.
Addressing French parliament on Tuesday, Manuel Valls warned 'very serious risks remain', as hunt for accomplices to terror attacks continued.
The budget plans for savings of almost 25 bln euros to bring public deficit down from 4.4 per cent of GDP in 2014 to 4.1 per cent in 2015.
Parliament passes new law ending 200-year Napoleonic definition that put pets and livestock in France on a par with armchairs.