Partial unemployment : a new mechanism valid for two years - The Point

In response to the economic impact of the pandemic coronavirus, the government had established, by a decree dated 25 march 2020, the part-time unemployment – wi

Partial unemployment : a new mechanism valid for two years - The Point

In response to the economic impact of the pandemic coronavirus, the government had established, by a decree dated 25 march 2020, the part-time unemployment – with retroactive effect from the 1st march – in order to minimize layoffs. In effect, this measure allows companies in difficulty to bear a portion of their payroll by the State without a license, despite the stop or the decrease of their activity. A device that has evolved to the 1st of June and that should continue to be modified.

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The new version will be set from this week during consultations with the trade unions and employers, and will be in effect for one to two years, " announced Monday on France Info Muriel Pénicaud, the minister of Labour. "It is designed to last one to two years, it's part of the sliders that we will decide during the consultation that should start on Monday ", she added. "This delay is not related to the end of the quinquennium, but to the economic crisis," she explained.

8.6 million employees in partial unemployment

The government on Thursday announced a number of consultations to support employment, including on the terms of a scheme of part-time workers, which will be implemented through a collective agreement of the company or branch. It would give rise to a compensation in return for maintaining employment. In April, 8.6 million workers were in part-time unemployment, recalled the minister, who has not yet the figures for may. Since the beginning of the crisis in march, the government has put in place a regime of exceptional short-time work to avoid redundancies.

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Since June 1, the support by the State and Unedic has decreased from 100% to 85 % of the compensation paid to the employee, with the exception of sectors subject to restrictions because of the health crisis, such as tourism or catering. "This device will keep his job, the company to keep his skills ", explained the minister. Among the counterparties to the company, retention in employment, but also, " if there is a decline in wages during the crisis (at the end of the crisis, editor's NOTE), there is more incentive. This will be negotiated within the company."

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Updated Date: 08 June 2020, 04:33

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