UNEMPLOYMENT INSURANCE. Invited to the microphone in France info, the Minister of Labor promised a text before the end of the year to implement the reform of unemployment insurance.
[Mise à jour du jeudi 03 novembre 2022 à 09h36] Will the executive board succeed in implementing its unemployment insurance reform? “There will be a text by the end of the year,” promised Labor Minister Olivier Dussopt. In addition to the extension of compensation rules as a result of the 2019 reform, the project must allow the government to adapt the system depending on the economic situation. The heart of the project is based on modulation by decree of the conditions for receiving unemployment insurance according to the economic situation.
In other words to ensure that the unemployment insurance scheme is “stricter when too many jobs are unfilled, more generous when unemployment is high” to solve recruitment problems in many sectors (construction, hotels and restaurants, etc.), Emmanuel Macron explained during the presidential campaign.
The government has started discussions with the social partners about the reform of the social security fund. The whole difficulty now lies in determining the criteria for changing the unemployment insurance system according to the economic situation (conditions for granting unemployment benefits, duration of compensation, etc.). DBilateral meetings with trade unions and employers’ organizations must now be arranged. The final meeting will take place on November 21, for an application of the decree “as soon as possible”, had insisted on the cabinet of Olivier Dussopt. These statements come as deputies and senators now have to agree on a joint version of the bill in a joint committee, after the passage of the text in the assembly and the senate.
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 under way 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.
Under certain conditions, this reform provides compensation for self-employed and resigning employees with a retraining project. 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 (subsidy for return to work) is calculated from the income for the past 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 beyond 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.