UNEMPLOYMENT INSURANCE. This Tuesday, 11 October 2022, the alternates adopted the form of cashier at the first reading. We take stock of what may change for jobseekers if the text is finally adopted.
[Mis à jour le 11 octobre 2022 à 20h18] On Tuesday 11 October 2022, the deputies adopted the reform of the social security fund at the first reading. With 303 votes in favor, the first reform of Emmanuel Macron’s second five-year term could count on the votes of the members of the presidential majority and the elected Les Républicains. The latter’s support was expected after their amendment on job cuts was adopted on 5 October. From now on, the text must therefore be considered by the Senate.
This bill, if finally passed, should profoundly change the conditions necessary to receive unemployment insurance. Firstly, the government can by decree extend the unemployment benefit rules until 31 December 2023. Otherwise, jobseekers could no longer be compensated from 1 November 2022. In addition, the text determines that the executive board can again, by decree, change the conditions for compensation for the unemployed. In that sense, Labor Minister Olivier Dussopt has repeatedly recalled the methods that the government wanted to implement: “When things are going really well, the rules must be incentives, and when things are less good, they must be more protective,” reports Le Monde.
Another measure has caused much ink to flow since it was added, by amendment, on Wednesday, October 5. The “presumption of resignation” thing. The purpose of the adopted measure is to limit the workers’ access to leave the job “when they want their employment to end while being compensated by the unemployment insurance”. “This provision does not apply to employees who leave their position for health or safety reasons,” the amendments state. According to applicable law, a dismissal for resignation constitutes a dismissal for fault and does not deprive the dismissed person of his right to receive unemployment insurance.
With the unemployment insurance reform project 2022, the government seems to want to go a little further than under the previous reform. Labor Minister Olivier Dussopt insisted on recalling that consultation with the unions must absolutely take place in order to find a majority agreement. The next exchanges promise to be stormy and complex. In addition to the expansion of the current compensation rules, the executive board is considering several important new features:
- Audit of Validation of Acquired Experience (VAE)
- Customize rules based on financial conditions
- Change the compensation period to 24 months
- Change the number of processed months needed to open the vacancy (currently 6 months)
The text of this new unemployment insurance reform is an extension of several provisions already introduced in 2021 at the end of Emmanuel Macron’s first five-year term.
Bonus malus on short contracts
The purpose of the bonus-malus is to encourage companies to extend the duration of employment contracts and avoid excessive use of short contracts. The bonus-malus consists in modulating the unemployment insurance contribution rate, which is currently 4.05%, upwards (malus) or downwards (bonus), depending on the degree of separation of the companies concerned.
Change in the calculation of the allowance
Since 1 October 2021, the daily allowance calculation has changed: The daily reference salary, which forms the basis for the latter, is calculated by dividing the salary received during the past 24 months by all days, regardless of whether they have worked or not. To prevent precarious workers who alternate between short contracts and periods of inactivity from being affected, the Minister has fixed this measure by introducing a floor. The latter will guarantee a minimum allocation. The number of non-working days taken into account in this calculation will also be limited to a maximum of 13 non-working days out of 30.
The degressivity of unemployment benefits
This new feature was introduced in 2021 for high earners. In detail, employees under the age of 57 whose salary exceeds 4,500 euros gross per month will see their compensation reduced by 30% from the seventh month. The degressivity is expected from June 2022 at the earliest for people who opened their right to unemployment from 1 December. “Since the 1eh From July 2021, the degressivity of the allowance (-30%) for employees under the age of 57 with a previous income of over €4,500 gross per month with effect from the 9e months, that is, after 8 months of compensation”, states the public service site. “The degression will take place from March 2022 for people who opened their right to unemployment on 1.eh July 2021. The 6-month count in which degressivity applies had been suspended between 1.eh March 2020 and 30 June 2021, i.e. 487 days in total. He started shooting again from 1eh July 2021″.
Since 1 December 2021, the compensation rules have changed with regard to the minimum duration of affiliation and the degressivity of the grant. To determine the amount of the return to work, Pôle emploi takes your previous salary into account. The ARE must be equal to the highest amount between these two formulas, Pôle emploi explains on its website:
- 40.4% of your daily reference salary + €12.12 since 1 July;
- 57% of your RDS.
As an indication, SRJ answered until the reform of 1. October 2021 to the annual reference salary divided by the number of working days over the last 12 months preceding the last working day. “The maximum number of working days withheld in the reference period is 261 days”, we could read on the public service page. “The calculation of SJR is achieved as follows: SJR = reference wage / (number of working days x 1.4)”.
For new jobseekers, from now on the calculation will be made over the last 24 months by dividing the salary received during this period by the number of days worked, regardless of whether they were worked or not. A cap of 75% will be applied for non-worked days.
The amount of the return to work is strictly regulated: it must be between 57 and 75% of the daily reference wage. The amount must not be less than 29.38 euros per day. An amount that should be qualified, as this amount corresponds to the situation of a person working full time, reminds Unédic on its website.
“After part-time, the calculation of your allowance follows the same rules as for a full-time job, but it takes into account your special working hours”, states Unédic on its dedicated page. “For this, Pôle Emploi uses a part-time coefficient. This coefficient is equal to your number of weekly working hours divided by the legal (35-hour) or conventional weekly schedule used in your previous company”.
To receive ARE, you must be involuntarily deprived of employment. You must justify a minimum working period at the end date of the employment contract. The public service website provides you with a simulator to try to find out the amount of your ARE according to your situation, click here. The ARE payment can be combined with other earned income. The payment of ARE ceases if you find a paid professional activity. The compensation conditions are not the same before or from 1eh November 2019 and according to your age.
The amount of allowance paid to jobseekers increased on July 1, 2022. A decision made after an Unédic board meeting on Thursday, June 30. With regard to daily allowance, the increase should concern DKK 2.1 million. receivers. Are you a beneficiary of ARE (back to work)? You will pocket €30.42 per dayagainst previously 29.56 euros (for the minimum allocation). The fixed part of ARE rises slightly from 12.12 euros per day to 12.47 euros per day.
You’ve lost your job and you want to know if you qualify, so don’t panic. Remember that civil servants and employees in the private sector can benefit from ARE under the same conditions. But what are these? We summarize the applicable rules:
- You must prove that you have worked for a minimum period and have therefore made sufficient contributions. We are talking about the membership period. Specifically, if you are currently under 53, you must document six months of work within the last 24 months on the end date of your employment contract.
- “You must be involuntarily deprived of employment,” states a well on the website service-public.fr. This means that the termination of your contract of employment can only be due to the following reasons: dismissal for financial or personal reasons, dismissal, non-renewal of a fixed-term contract (CDD) or a termination that is considered legal (read more below).
- You must absolutely register with Pôle emploi within 12 months of the end of your employment contract or complete a training program included in your personal plan for access to employment (PPAE).
- You must perform “positive and repeated” actions to find a job.
- You must not have reached the statutory retirement age set at 62 or meet the conditions for full rate.
Unemployment insurance, also called social guarantee for the company manager (GSC) covers the manager or company manager in case of involuntary loss of his job. Whether you manage an SA, SARL or EURL, you are never safe from a revocation of mandate for various reasons originating from your partners or shareholders. It may or may not be justified, but above all, it may cause you to lose your job. In general, there is a lack of renewal of the mandate. In this case, the company does not cease its activity. The director’s mandate can also be revoked prematurely.