Dussopt announced the extension of existing rules

The implementation of the 2019 reform has been delayed by two years due to Covid.

Labor Minister Olivier Dusupet said on Tuesday that the rules for unemployment benefits, which expire on October 31, will be extended to allow time to assess the effects of the latest reform that came into effect at the end of 2021.”These rules are valid until October 31 and we’re working to figure out how to extend them.Olivier Dusupet said on Radio Sud.

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He did not specify the new term, but according to union sources, this extension could be for a year or until the end of 2023.

The need for evaluation

Olivier Dusupet noted that the implementation of the 2019 reform was delayed by two years due to Covid and union calls before the State Council. “You have to evaluate first. First, let’s look at the usefulness of these new rules. It facilitates hiring, facilitates hiring incentives, but we only have a few months of hindsight‘, he confirmed.

Unédic has not evaluated this fix yet and it has not been expected for several months. The new method for calculating the daily reference wage (SJR), the basis for unemployment benefit, took effect on October 1, 2021. It was followed by the December 1 eligibility reform (six months of work and no longer four months of work. Compensation) and a 30% regression (for the unemployed Employment under the age of 57 who earned a wage greater than €4,500 gross) which applies after six months and not eight. Corporate bonuses (in seven major sectors consuming short contracts) will only have an impact on unemployment contributions in September 2022 even if the monitoring period for companies to account for this adjustment begins in July 2021.

During the election campaign, Emmanuel Macron promised a new reform so that compensation rules would be further adjusted according to the economic situation. An extension of the rules will allow more time to negotiate this reform, especially as some unions and employer organizations are calling for it to be paired with a change in the management of Unédic, a joint unemployment compensation system as the state calls for more and more. They did not like how the recent reform went, as the state first required them to negotiate high levels of savings incover letterVery careful, then regained control after the failure of negotiations.

We don’t want a system where the space for social partners to set the rules is very small‘, recently confirmed by Laurent Berger (CFDT).

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