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New Legislation | In brief: The government announces its plans for the second half of its term

Published on : 29/07/2019 29 July Jul 07 2019
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Newsletter / New legislation

Doing business in France requires keeping up to speed with the quickly evolving and growing legislation. Whether it’s Labor Law, Tax, Social Security, or other, we’re here to guide you through the new rules of the game
 
 
The government of French president Emmanuel Macron has announced its plan for the second half of its term, under the promise of “better social justice”.
 
The Government intends to act with "powerful measures to meet the aspirations of the French. And to appease "
 
Unemployment has reached its lowest level in ten years and 93,000 jobs were created in the first quarter of 2019. Although this period is positive, France is not yet finished with mass unemployment. This is why the social dialogue in the company has been strengthened, vocational training and apprenticeship have been reformed.
 
Under the plan,  unemployment benefits will be reformed with four objectives:
 
• Put an end to the abuse of short-term contracts (CDD): the government will implement a bonus system with penalites for the industries that use the most CDD’s and which consequently generate precarious situations.
• Make work pay more than being unemployed
• Introduce a  progressive decrease of compensation for out-of-work employees who earn the highest wages and are able to find a job faster than others
• Strengthen support for jobseekers
 
The Prime Minister has also reaffirmed the president’s commitment to provide access to unemployment insurance for employees who resign and for the self-employed.
 
 
The government aims to tighten the conditions of compensation for the unemployed: to gain unemployment benefit rights ,a person will have to have worked “six months out of the twenty-four” months before the job loss, instead of the current rule of “four out of twenty-eight” that applies  now.
 
These measure that restrict the unemployment insurance compensation rules are projected to save 1 to 1.3 billion euros per year.  
 
After the failure of negotiations between employers and unions, the government announced its intention to move ahead quickly.
 
Three draft decrees have been transmitted by the Government to the CNNCEFP
Sub commission on Employment, Orientation and Professional Training for examination.
The decrees were to be analyzed by the Commission on 16 July 2019.
 
The decrees concern:
 
- the rewriting of the unemployment insurance regulations;
- the application of the provisions of the "Avenir Professionnel" Law of September 2018;
- the amount of the allowance for self-employed workers.
 
The back to school period promises to be rich in labour and social law reforms.
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