HomeEconomyUnemployment insurance: computer error in the "bonus-malus" of 6000 companies

Unemployment insurance: computer error in the “bonus-malus” of 6000 companies

The “bonus-malus” system established with the previous unemployment insurance reform, to fight against the abuse of short contracts, was affected by a “computer error”.

The calculation was distorted for 6000 companies. The “bonus-malus” system implemented with the previous unemployment insurance reform to fight against the abuse of short contracts was affected by a “computer error”, indicates a decree published this Wednesday in the DO.

Emmanuel Macron’s campaign promise in 2017, the bonus-malus, which came into force in September, consists of modulating upwards (malus) the employer’s contribution to unemployment insurance -4.05% of the payroll- up to a ceiling of 5.05% or downward (bonus) to a floor of 3%, depending on the “separation rate” of the companies.

Encourage companies to extend the duration of contracts

This “separation rate” corresponds to the number of terminations of contracts -excluding resignations- or temporary assignments accompanied by registration in Pôle emploi, in relation to the company’s workforce.

With strong opposition from employers, this device born from the 2019 unemployment insurance reform, aims to encourage companies to extend the duration of the employment contracts offered. The measure, aimed at seven sectors that are large consumers of short contracts, was presented as the counterpart of the rules that toughen unemployment benefits.

18,000 companies affected, of which 37% sanctioned

In September, for the first year of application, 18,000 companies were affected, including a large third sanctioned (37%).

However, a decree published this Wednesday in the Official Gazette explains that “a computer error affected the data relating to the separation rate of certain companies” affected by the bonus-malus. In total, 6,000 companies are affected by the computer error, detailed the Ministry of Labor.

Companies that have paid an overpayment “in September-November” will be reimbursed, while those that “have been notified of a modulated rate lower than their actual rate” will be informed of their new rate “but will not be responsible for the difference in September-November”, continued the ministry, without specifying the amounts in question.

Author: NLC with AFP
Source: BFM TV

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