Muriel Pénicaud, Minister of Labor, at the National Assembly, Tuesday. - Jacques Witt / SIPA

Due to the spread of the coronavirus, nearly 3,600 companies have already applied for partial unemployment for their employees, or around 60,000 people, announced the Minister of Labor Muriel Pénicaud, on Thursday.

This partial activity system, which aims to maintain employment in the event of a drop in activity, has already entailed a cost of 180 million euros for the State, she explained on the set of LCI, ensuring "no budget limit" to "save jobs".

Hourly compensation soon to exceed Smic

When employees are placed in a position of partial activity, the employment contract is suspended but not broken. “We avoid tens of thousands of layoffs. It is a tool that preserves the employee's employment and income, "underlined Muriel Pénicaud, ensuring that the regional labor offices strive to respond to requests from companies within 48 hours. Employees receive hourly compensation from their employer, which must correspond to at least 70% of gross previous earnings (84% of net salary). For its part, the State has brought up to the minimum wage the compensatory hourly allowance paid to employers using this system.

Our file on the coronavirus

"We are looking at whether we can go beyond the minimum wage," said Muriel Pénicaud. "Tourism, catering, events and transport are the four sectors that concern us the most," she said. She recalled that "any business can request by a simple mail the postponement of its social security and tax payments" and the appointment of a mediator on credit between banks and small businesses. After the emergency measures, "there will have to be a recovery plan" for the economy to "rebuild capacity," she also said.

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