While France had some 25.5 million employees at the end of 2019, according to a study by Dares, the statistical institute of the Ministry of Labor, more than 10 million of them were on partial unemployment at the end of April 2020. Never this device had never been deployed on such a large scale.
This measure allows companies facing difficult economic conditions - here the coronavirus crisis - to reduce or temporarily stop the work of their staff, while paying them 70% of their gross salary for these non-working hours. The State bears this cost, since it reimburses employers through an equivalent allowance. Given the massive use of this device, the bill looks astronomical. The administration will therefore be particularly vigilant about the use of public funds.
Justify your motivations
"All the stages of reasoning that led to partial unemployment will be subject to control, starting with the reasons for the interruption of the activity, which must be justified on an economic level", explains Me Camille Frédéric Pradel , lawyer specializing in social protection and occupational health and author for Lexis Nexis. A company which has resorted to this aid system when it could still operate could thus be penalized. Even within a company, you will have to be able to justify stopping or reducing “service by service” hours.
In order to avoid any recovery, the Exco network of chartered accountants has validated all of the partial unemployment justifications requested by its customers. And its president Bruno Geeraert to specify: "We refused some by explaining that the reasons mentioned did not justify recourse to partial activity or total absence of activity". If the demonstration can be simple in the event of closure imposed by the State or lack of supply, the situation can be more complex to explain in other sectors, such as intellectual fields, for example.
Telecommuting, child care and time off in the crosshairs
The authorities also warned that the conditions for implementing short-time working would be scrutinized. "Teleworking is the workhorse of the ministry," confirms Medhi Chaal, lawyer in social law for the Exco network. The administration will in particular verify that the companies have not declared a partial activity while the employees worked at home. "Bruno Geeraert adds:" The case which gives rise to the most discussions concerns employees who are partly teleworked and partly part-time unemployed. In theory, it is necessary to enforce fixed working hours. But some have constraints, such as the care of young children, which prevents them from respecting them. "
Another pitfall: technical unemployment cannot apply during a stop for childcare, paid holidays, sick leave or public holidays. The calculation promises to be delicate. Not to mention that all the premiums are not taken into account in the partial activity equation.
Error or fraud?
Companies therefore have an interest in preparing a solid argument. And the experts questioned expect a wave of massive checks from the regional directorates of companies (Direccte) by this fall or early 2021, once the companies' accounts are closed. At the top of the list, offenders may be forced to reimburse all amounts received for partial unemployment, including unpaid social contributions, while being deprived of public aid for five years. In addition, criminal proceedings can be taken for illegal work.
Medhi Chaal hopes, however, that the authorities will distinguish between pure fraud and bona fide error: “The confinement was telescoped with the use of short-time working, which created a panic effect. Many companies have stopped before knowing that they could continue their activity. Many pay slips therefore risk being false, at least for the month of March. In addition, as the government continued to clarify the rules over time, the lawyer believes that this "legal uncertainty" should be taken into account during checks. In addition, employees placed unduly on partial unemployment may seize the labor courts to claim from their employer the part of wages not paid.
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- Fraud
- Unemployment
- Labor Code
- Coronavirus
- Job
- Legislation