The Ministry of Labor has sent to the social agents the draft decree that develops the new unemployment insurance reform, with the hint of a reduction in the duration of the compensation by 40% if unemployment falls below the 6% Initially presented by the AEF agency, the text provides -as the Government had announced when presenting the reform at the end of November- a 25% reduction in the duration of the compensation for all job seekers entitled to unemployment insurance from from February 1 in mainland France.
An “end of law supplement” in case of deterioration of the labor market
As a novelty, it also provides that with an unemployment rate of less than 6% (compared to the current 7.3%), the duration of the compensation will be reduced by 40% and not 25%. The presentation sheet of the decree specifies that “the conditions of application of this provision are referred to a decree in the Council of State taken after consultation” with the social partners. When presenting the reform, the Minister of Labor, Olivier Dussopt, had mentioned the possibility of a tightening, but in case of unemployment below “5%”, or the level at which we can speak of “full employment”.
For jobseekers who will see their compensation period reduced in February, the document provides, as announced, a “complement at the end of the right” in the event of a deterioration in the labor market, if unemployment exceeds 9% or increases by 0.8 points or more over a quarter. The text also confirms that certain populations are excluded from the reform, such as intermittent show workers, fishermen or stevedores.
Exam of the text on January 10
Regarding the “bonus-malus” on the unemployment insurance contribution for companies in seven sectors that are large consumers of precarious contracts (accommodation and catering, transport, etc.), the text extends until August 31, 2023 the first modulation that it began on September 1, 2022. It establishes a second period from September 1, 2023 to August 31, 2024, for the reincorporation of companies greatly affected by the health crisis that had been excluded.
The draft decree of 12 articles was sent to the members of the National Commission for Collective Bargaining, Employment and Vocational Training (CNNCEFP), whose opinion has an advisory nature. They will review the text on January 10. The decree ends on December 31, 2023, and the social partners must negotiate new rules by January 1, 2024
Source: BFM TV
