the adopted reform, what awaits you

UNEMPLOYMENT INSURANCE. At first reading, the National Assembly adopted the draft for the unemployment insurance scheme. Discover the measures that have been voted.

[Mise à jour du mercredi 12 octobre 2022 à 08h38] After heated debates, the National Assembly passed the first reading of the bill, which initiates a new reform of unemployment insurance, by 303 votes to 249, with 11 abstentions. The text must then land on the Senate’s desk, where the review will start on October 25. At the same time, from next week, the executive board must carry out a consultation phase of six to eight weeks with the social partners. Finally, the government will decide on certain provisions by decree. Here’s what to remember from the regulations adopted by the Bourbon Palace:

  • Graduation by decree of the duration of the unemployment benefit according to the financial situation :islandBjective stated that the unemployment insurance system should be “stricter when too many jobs are unfilled, more generous when unemployment is high” to solve the difficulties of recruitment in many sectors (construction, hotel and catering…), explained Emmanuel Macron during the presidential election campaign. “The principle is simple: when things are going very well, the rules must be more incentives, and when things are less good, they must be more protective,” said Olivier Dussopt, at the microphone for France info. “We will not touch the compensation amount,” the minister repeated to JDD. But “on the other hand, one can wonder about the conditions for entry into the system – six months out of twenty-four today – and about the duration of the compensation”.
  • Expansion of applicable unemployment insurance regulationsfollowing a contentious reform of Macron’s first five-year term.
  • Tightening of the conditions for access to unemployment for employees who have given up their position : “The employee who has voluntarily given up his position and does not return to work after receiving an opening letter to this effect (…) is presumed to have resigned”, the rights changes state. This decision comes at a time when the Minister of Labor declared himself in favor an alignment of unemployment rights for employees who leave their positions with those of employees who resign. As a reminder, the a-kassen is basically reserved persons who are involuntarily deprived of employment. For those who resign, there are only limited opportunities to return to the labor market.
  • Creation of a public service for the validation of acquired experience (VAE) : it makes it possible to obtain a certification thanks to the recognition of the experience gained during the professional career. To further develop usage, the government plans to create a one-stop shop.

In the longer term, the management wants to initiate a reform of Unédic’s governance. The latter is the joint body responsible for the administration of unemployment insurance. This reflection takes place in a context where the government wants to implement two parallel projects:

  1. The condition of the payment of the RSA to the achievement of 15 to 20 hours of weekly activity;
  2. The creation of France Travail, which was to replace the Pôle emploi. “I hope that the implementation will gradually be possible from 2024”, said Labor Minister Olivier Dussopt on Wednesday on BFM Business.

Unemployment insurance is a benefit paid to private sector employees who have lost their jobs. The right to compensation is calculated on the basis of the unemployed person’s previous salary. Unemployment insurance plays two roles: it helps an unemployed person financially cope with the loss of employment by maintaining their purchasing power and living conditions. It also offers a solution to return to work through personal support. The allowances are paid during periods of education, business establishment or retraining.

The A cashier reform: what has already changed for the unemployed?

The A-cashier form has been in operation since 2019, but new changes have been implemented in 2021 and 2022. Here are the four main points in the A-cashier form:

  • recalculation of the allowance;
  • reduction of unemployment benefits (degressivity) for high incomes;
  • bonus-malus on the unemployment benefit;
  • change of the minimum working hours to receive unemployment benefits.

This reform allows compensation for self-employed and resigning employees with a retraining project under certain conditions. The minimum duration of work to receive unemployment benefits is increased from 4 months to 6 months of work during the 24 months preceding the end of the last contract.

A-kasse and compensation, how does it work?

Unemployment insurance or ARE (back to work money) is calculated from the income of the last 12 months, taking into account the days worked. The A-cashier reform contains new calculation rules that determine an average monthly income including working days and periods of inactivity. For high salaries, a degressivity may apply to the size of the allowance, with a reduction of 30% after 8 months of compensation.

Private unemployment fund, for whom?

Private unemployment insurance is insurance that makes it possible to compensate for the drop in income after a loss of work. It is aimed at business managers as a main insurance, the latter not benefiting from Pôle Emploi support. It can also be about employees who want help in addition to the traditional social security fund.

Connection to the a-kassen

Unemployment insurance is compulsory for all employees in the private sector and is financed by them in the form of salary deductions. All private employers must join the social security fund. Solidarity, the allowance makes it possible to best support former employees with low incomes, who are favored over those who benefit from a high salary.

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