The rules of partial unemployment change again in France. In the past three months, the partial activity system - commonly known as "partial unemployment" or "technical unemployment" - has been modified many times and will be changed again from October 1. At the same time, a system of long-term partial unemployment was established from July 1.

Before Covid-19

In the event of a reduction in activity, a company could activate a partial activity device, approved by the administration. The company required a volume of hours for six months. This plan, unified since 2013 (before a classic and a long-term plan coexisted), was compensated up to 7.74 euros per hour (7.23 euros for companies with at least 250 employees) with the company . The employee received 70% of his gross salary (or 84% of the net). There was nothing to prevent the company from offsetting the rest.

During confinement

To compensate for the sudden cessation of activity and "avoid layoffs", the government, following in the footsteps of what Germany had done during the 2008 crisis, encouraged companies to resort to it widely and led to a year the authorized duration.  

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

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

Several categories of employees (part-time employees, temporary workers, employees on a daily basis, sales representatives, home workers, apprentices, seasonal workers, etc.) have joined the system, enlargements welcomed by both employers and unions.

The possibility of individualizing partial unemployment within the same team was also instituted, previously prohibited.

At the same time, the device was used as of May 1 to compensate employees unable to work because they were looking after children and who, since the start of confinement, had been able to take sick leave.

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

After confinement

To "support the recovery", the government has reduced the sail since June 1: companies are now no longer compensated 100%, but 85% by the State and Unédic, still within the limit of 4.5 minimum wage.

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

As of October 1, partial unemployment will be paid by the State up to 72% of net wages (60% gross) for the employee, with compensation up to 60% for companies. It will be valid for three months renewable three months, or six months maximum. The unions were in recent days upwind at the idea of ​​a reduction in compensation for employees.

Inspired by metallurgy

The company must face a drop in activity of up to 60% and can use it for a maximum of six months. At the same time, the "reduced job retention activity" was introduced, which will come into force on July 1.

This long-term partial unemployment was recognized in principle by the health emergency bill. At stake: helping companies "faced with a reduction in sustainable activity which is not likely to jeopardize their sustainability", in return for commitments on employment. It allows a maximum reduction in working time of 40%.

Inspired by a text signed in metallurgy, it could be used in aeronautics for example. Condition: it must be subject to a majority collective agreement in the company or in the branch and include "the commitments specifically made in return, in particular for the maintenance of employment".

The employee will receive 84% of his net salary. The company will be compensated at 85% of the compensation paid to the employee (i.e. 15% of the remainder to be paid) for an agreement concluded before October 1, and 80% for an agreement concluded after. Training costs may be covered up to 80%.

In a small company (less than 11 employees), in the absence of a union representative, the agreement can go through a referendum, as provided for in the labor orders of September 2017. 

With AFP

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