The law entrusts public employment services (
Pôle emploi) with the following two missions:
- Insuring employees in case of unemployment: public employment services calculate unemployment allowances and pay benefits on behalf of the unemployment insurance scheme (Unédic) and the government;
- Facilitating the return of job seekers into employment: public employment services provide job seekers as well as companies with services like collection of job offers, assistance in recruitment, assistance for job search and career guidance.
Unemployment benefits
For new jobseekers, the compensation rules have changed since 1 February 2023. The length of time unemployed people receive compensation will depend on the economic climate. The current unemployment insurance rules have been extended until 31 December 2023. By the end of the year, the social partners must conclude an agreement (unemployment insurance agreement) that will determine how the unemployment insurance scheme will operate from 1 January 2024. If no agreement is reached, the government will extend or adapt the current arrangements by decree.
Main features
Employees eligible for unemployment insurance
In order to receive back-to-work allowance (ARE), a private-sector employee must be involuntarily unemployed. The termination of the employment contract must be the result of one of the following situations:
* Redundancy for personal or economic reasons or, in the case of the civil service, dismissal.
* Termination by mutual agreement allows the employer and the employee on a permanent employment contract (CDI: Contrat de travail à durée indéterminée) to mutually agree on the terms of termination of the employment contract between them.
* Non-renewal of a fixed-term contract (CDD)
* Resignation considered legitimate (for example, to follow the person with whom you are living as a couple).
Duration of affiliation
To be entitled to ARE, a jobseeker must have worked for at least 6 months (i.e. 130 days or 910 hours) in the 24 months prior to the end of their employment contract. This minimum period of work is known as the qualifying period.
In the event of loss of employment, jobseekers are entitled to resume their initial entitlements until they are exhausted. This option only applies if the jobseeker has returned to work before exhausting his or her rights. Jobseekers thus benefit from so-called "rechargeable" rights. They must have worked for 6 months (i.e. 130 days or 910 hours) in the last 24 months to benefit from new rights with a new duration of compensation.
Amount of the allowance
The gross daily amount of the ARE comprises :
* a fixed part equal to €12.95
*and a variable part equal to 40.4% of the daily reference salary used to calculate the allowance. This sum cannot be less than 57% and cannot be more than 75% of the SJR.
The net amount of the ARE cannot be less than €31.59.
Degressivity of the allowance
If the daily allowance is higher than an average gross daily previous salary of €159.68 (i.e. an average gross monthly salary of €4,857.81), a reduction of 30% is applied from the 7th month of payment. After degressivity, the allowance cannot be less than €91.02 gross per day (i.e. approximately €2,730 gross for a 30-day month).
Changes since 1 February 2023
The law of 21 December 2022 on emergency measures relating to the operation of the labour market with a view to full employment authorises the government to extend the current unemployment insurance rules until 31 December 2023 and to prescribe new rules for compensating the unemployed in line with the state of the labour market. The implementing decree of 26 January 2023 on the unemployment insurance scheme sets out the new rules for compensating jobseekers.
Duration of compensation can be adjusted according to the state of the labour market
For new jobseekers whose employment contract ends on or after 1 February 2023, the duration of unemployment benefit depends on the labour market. If it is favourable, the duration of benefit will be shortened by 25%. A coefficient equal to 0.75 is applied to the initial benefit period. If the economic situation worsens, the current benefit period will be maintained.
New rules on the duration of unemployment benefit depending on the labour market situation:
* If the overall unemployment rate is below 9% and has not risen by +0.8 points over a quarter, the duration of compensation will be reduced by 25% with a minimum duration of 6 months (182 days);
* If the unemployment rate is higher than 9% or has risen by more than 0.8% over a quarter, the current rules on the duration of compensation will apply (depending on the salaried activity and age of the jobseeker).
In the event of a favourable labour market situation:
* A jobseeker under 53 who has 730 days of compensation will be notified of an entitlement of 548 days after applying the coefficient of 0.75.
* A jobseeker aged 53-54 who has 913 days of benefit will be notified of an entitlement of 685 days after application of the 0.75 coefficient (with the possibility of an extension of up to 137 days in the event of training).
* A jobseeker aged 55 or over with 1,095 days will be notified of an entitlement of 822 days after application of the 0.75 coefficient.
Abandonment of post and refusal to accept a permanent contract (CDI)
The law of 21 December 2022 on emergency measures relating to the operation of the labour market with a view to full employment provides for the abolition of access to unemployment benefit in the event of :
- abandonment of post without a legitimate reason (medical reasons, right to strike, etc.). An employee who does not return to work by the end of the period specified in the employer's formal notice will be deemed to have resigned. Dismissal for abandonment of post will no longer give entitlement to unemployment benefit;
- refusal of open-ended contracts (CDI) for employees on short contracts. An employee at the end of a fixed-term contract (CDD) or temporary contract who refuses an open-ended contract twice within the space of a year, in the same job, at the same place of work and with at least equivalent pay, will no longer receive unemployment benefit.
Job search support
Within the framework of their public service mission, public employment services are committed to help job seekers back into work and to support companies with recruitment activities. Defined in the labour code, the public employment services' main goals are the following:
- To identify trends in the labour market;
- To develop expertise in the evolution of the labour market and related qualifications;
- To collect and match job offers with job seekers;
- To assist and advise companies in their recruitment activities;
- To actively participate in fighting recruitment discrimination and campaigning for equality;
- To provide information, guidance and support to job seekers;
- To provide training and career counselling, regardless of their employment status;
- To facilitate geographic and professional mobility and social and professional integration.
- To register job seekers in up-to-date lists and monitor their search for employment.
Return-to-work incentive measures
Once registered, job seekers agree with public employment services on an individualised return-to-work programme (
Projet personnalisé d’accès à l’emploi) and show progress in finding a new position.
According to the Unemployment insurance agreement, return-to-work incentive measures include the following:
- 'Reloadable entitlements': Job seekers with an unemployment allowance are allowed to take on a job or more and perform a total of 150 hours or more of work without losing the previously acquired entitlements. This means that the job seeker can add new earnings from a short period of employment to the entitlements that had not been used when employment was resumed. Therefore, each new work period increases the duration of coverage for unemployment insurance beneficiaries, if it is within 28 or 36 months of the last employment.
- Earning while receiving an unemployment allowance: It is possible to earn a salary while receiving an unemployment allowance, and therefore to cumulate a salary with the unemployment allowance, under the condition that the sum of the two does not exceed the average gross salary earned prior to the registration as a job seeker.
In the case of earning while receiving an unemployment allowance, the actual amount of allowance received corresponds to the calculation for the entitlement as described above minus 70% of the gross monthly salary earned from the new employment.
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments
Comments