Table of Contents
- 1 Older people and cross-border workers were the most affected
- 2 Some measures for the employment of the elderly
- 3 Irement. For cross-border workers, the reform will facilitate their access to unemployment benefits and provide clearer rules regarding their rights, which is essential in a European context with increasing mobility.
400 million savings from 2025, This is what the representatives of workers and employers were supposed to find during these negotiations, at the request of the government. An agreement was finally reached on Thursday, November 14, although not all unions are expected to sign it. It accepts most of the agreement that was decided in the fall of 2023, which never came into being because the government at the time had made this agreement by decision another agreement, on high earnings. This had not been successful, the executive then took control and proposed a new unemployment insurance reformwhich disappeared with the early legislative elections.
The Barnier government has given control back to the social partners, and if this agreement is confirmed internally by the unions then by the government, it will it will come into effect on 1 January 2025. It provides 395 million euros in savings for 2025: 260 million euros aimed at cross-border workers, and 135 million euros in the cancellation of employer contributions. Overall, this plan should generated 2.5 billion euros in savings between 2025 and 2028, for a regime already in excess.
Older people and cross-border workers were the most affected
With this agreement, high rights of jobseekers reduce, as a result of the pension reform which increases the legal retirement age from 62 to 64. Until now, while unemployment benefits to be paid for 18 months for the general case, job seekers aged 53 and 54 are eligible for 22.5 months, and those who are 55 and older, for 27 months. These rules will be suspended for two years: you must be 55 years old to receive compensation for 22.5 months, and 57 years old to be eligible for it for 27 months, except abroad where the rules do not change. These periods will continue to be subject to the principle of counter-circulation which came into force in February 2023: if unemployment is higher than 9%, the right to unemployment will be 30 and 36 months respectively for these old people. The system allows unemployed people at the end of their rights to continue receive the allowance until they reach the retirement age at the full rate he will also be retired change, from the current 62 years to 64 years. However, it is specified that these measures are “implemented in a quick manner with the actual implementation”. This means that if pension reform were to be rolled back, these differences would also be cancelled.
Another measure will affect the cross-border workers : until then, when a French worker loses his job on the other side of the border, his unemployment benefit is calculated on his total salary, which depending on the country can be much higher than for a situation equivalent in France. With the reform, the salary will be applied a proportional coefficient to the difference between the average salary of the State where the worker worked and the average salary of France. This will, for example, reduce the allowance by 40% for jobseekers who have worked in Switzerland.
In addition, for each beneficiary, the installment will now be paid over thirty days, regardless of the actual number of days in the month, but until now the calculation was based on this actual number of days. So unemployed people who receive compensation will lose five or six days of benefits each year.
On the employers’ side, the agreement works as one postponement of the 0.05 point reduction in the employer’s contribution rate for four monthsoriginally scheduled for January 1, 2025. This reduction will finally take effect on May 1, 2025.
Some progress can be seen for job seekers, who are already present in the 2023 agreement a reduction in allowance for the unemployed with high incomes will not be applied only for those under 55, compared to under 57 now. AN seasonal workers and first-time registrants must have contributed for five months, compared to six for the general case, over the past 24 months, but this requires legislative change from the government. The calculation method reference to daily wages its implementation in 2021 will also be reduced for those beneficiaries, as this had led to a significant reduction in their share.
Some measures for the employment of the elderly
Finally, another agreement is signed in parallel providing for alarming measures hiring seniors. The main thing is related to the gradual retirementwhich allows you to combine a part-time salary with part of your pension, from the age of 60. However, it is necessary to have the agreement of the employer for it to be granted. The unions wanted a “mandatory right” to advanced retirement, but the agreement ultimately provides that the employer must justify “the inadequacy of the working time requested by the individual – work with the economic activity of the company” to refuse.
And career “the last part of a career”. to organize between 58 and 60 years of age to deal with this subject. In addition to mid-career meeting “to deal with the change or adjustment of missions and workplaces, prevention of professional wear and tear situations, possible wishes for transfer or professional retraining”. The text also provides for a obligation to negotiate every three years in professional sectors and companies with more than 300 employees regarding the employment and work of older people.
“Knowledge enhancement contract”, a new name for the permanent high-level contractalso planned on an experimental basis for five years. A a company employing a job seeker over 60 years of age (age 57 if a branch agreement occurs) require a retirement insurance document “referring to the estimated date for » receiving the full rate. On this date, the company will then be able to automatically resign the employee, which is currently only possible from the age of 70. From 2027, companies could be exempted from the special employer’s contribution to be paid when they retire, equal to 30% of the cash- compensation paid to the employee. But this will be subject to the approval of the signatories within the framework of an audit committee.
2024-11-17 17:50:00
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Irement. For cross-border workers, the reform will facilitate their access to unemployment benefits and provide clearer rules regarding their rights, which is essential in a European context with increasing mobility.
Good day and thank you for agreeing to this interview. Could you please introduce yourself and your organization?
Guest 1: Good morning/afternoon, I am Jean-Pierre Barnier, representing the French Confederation of Employers’ Organizations (Medef), and we are a key partner in the social dialogue process for this unemployment insurance reform.
Guest 2: Hello, my name is Marie-Hélène Bidou, and I represent the General Confederation of Labor (CGT), one of the largest French trade unions participating in the social dialogue process.
Section 1: Overview of the Agreement and its Goals
1. What is the significance of the unemployment insurance reform agreement reached between the social partners and the government?
Guest 1: This agreement is crucial as it demonstrates the power of social dialogue in addressing economic and social challenges. It allows us to find a common ground on important issues that are beneficial for both employers and employees, reducing unemployment costs and ensuring a sustainable system for all parties involved. The goal of this reform is to modernize and adapt the unemployment insurance system to today’s realities and anticipate future changes, taking into account the impact of the pension reform and increasing cross-border mobility.
Guest 2: The reform agreement aims to maintain the solidarity-based nature of the French social model while adapting to changing economic contexts. It strikes a balance between the interests of workers and employers, safeguarding their rights while also ensuring the long-term financial sustainability of the system. The focus on older workers and cross-border workers addresses issues that have been neglected in previous discussions, acknowledging the unique challenges they face in the job market.
2. How will the reform affect different groups, such as elderly and cross-border workers?
Guest 1: The reform will have both positive and negative effects on various groups. For elderly workers, there will be reductions in jobseekers’ rights and an increased retirement age, which may disadvantage them in the job market. However, we hope that measures such as the hiring of seniors and the “last phase of a career” contract will help them find stable employment until they reach ret
