Élysée describes the new rules for partial unemployment to save jobs

Emmanuel Macron re-joined the social partners on Wednesday to unveil the new partial unemployment program to save jobs in difficulty due to the health crisis.

The rules for partial unemployment are changing again in France. Over the past three months, the partial activity system – often known as “partial unemployment” or “technical unemployment” – has changed many times and will change from 1yourOctober. At the same time, a system of long-term partial unemployment was set up from 1yourJuly.

Before Covid-19

In the event of reduced activity, a company can activate a sub-activity device, approved by the administration. The company required a volume of hours for six months. This plan, which has been combined since 2013 (before a classic and a long-term plan existed), was compensated up to EUR 7.74 per hour (EUR 7.23 for companies with at least 250 employees) with the company. The employee received 70% of his gross salary (or 84% of the net). Nothing prevented the company from compensating the rest.

During the containment

In order to compensate for the sudden cessation of operations and “avoid layoffs”, the government urged to follow what Germany had done during the 2008 crisis encouraged companies to take it at large and led to the approved duration for one year.

The employee still received 84% of his net salary, but the company was compensated for 100% of the compensation to the employee, up to 4.5 times the minimum wage (instead of the level of the minimum wage previously).

>> Read: The French economy takes at least two years to recover from Covid-19

Several categories of employees (part-time employees, temporary employees, day package employees, sales representatives, home workers, apprentices, seasonal workers etc.) have joined the system, extensions are welcomed by both employers and trade unions.

The possibility of individualizing partial unemployment within the same team was also introduced, previously banned.

At the same time, the unit was used from 1yourMay to compensate for employees who cannot work because they took care of children and who had been able to take sick leave since the beginning of inclusion.

On the other hand, CDD and short-term temporary employees could not benefit from this safety net, nor the self-employed persons who benefited from a fund. According to an estimate from the Ministry of Labor, 7.2 million French people worked in a short time one or more days of the week in March, 8.7 million in April and 7.8 million in May. The state budgeted SEK 31 billion during the year to pay the bill.

After containment

In order to “support the recovery”, the government has reduced the flyer since 1yourJune: companies are now no longer compensated 100% but 85% are compensated by the state and Unédic, always within the limit of 4.5 times the minimum wage.

Hotels, restaurants, tourism, events, culture, air transport … All the very affected sectors are not affected by the downturn and continue to take care of 100%.

From 1yourIn October, partial unemployment is paid by the state up to 72% of the net salary (60% of gross) for the worker, with compensation up to 60% for companies. It is valid for three months which can be renewed for three months, or a maximum of six months. In recent days, trade unions have been headlining the idea of ​​a reduction in employee compensation.

Inspired by metallurgy

The company must face a reduction in activity of up to 60% and can use it for a maximum of six months. At the same time, the “reduced conservation activity”, which comes into force on 1, was introducedyourJuly.

This long-term partial unemployment was recognized in principle by health issues. At stake: helping companies “face a decline in sustainable activity that is not likely to jeopardize their sustainability,” in return for employment commitments. This allows a maximum reduction in working time of 40%.

Inspired by a text signed in metallurgy, it can e.g. used in aircraft. Conditions: It must be the subject of a collective agreement for the majority of the company or the branch and include “the commitments specifically made in return, in particular to maintain the employment”.

Employees receive 84% of their net salary. The company will be compensated by 85% of the compensation paid to the employee (ie 15% of the balance to be paid) for an agreement concluded before 1yourOctober and 80% for a contract signed after. Training costs can be covered up to 80%.

In a small company (fewer than 11 employees), in the absence of a union representative, the agreement may be subject to a referendum in accordance with the provisions of the September 2017 work order.

With AFP