Reinforced text in the Senate? What was approved by the committee?

Unemployment insurance. After the unemployment insurance reform was adopted in the first reading in the National Assembly, the senators of the Social Affairs Committee began studying the bill.

[Mise à jour du jeudi 20 octobre 2022 à 08h39] As part of the committee’s unemployment insurance reform project review, senators made several changes. In addition to extending the compensation rules resulting from the 2019 reform, this provision should allow the government to adjust the system, depending on the economic situation. To mark the occasion, senators wanted to entrench the countercyclical principle of law. In addition, parliamentarians introduced an amendment to tighten access conditions to the system for job seekers who declined a CDI offer. The text will be examined in plenary from October 25.

At the same time, the government began discussions with the social partners on the reform of unemployment insurance. The heart of the project is based on Mmonopoly Decree on the conditions for benefiting from unemployment insurance according to the economic situation. In other words, to ensure Emmanuel Macron explained during the presidential campaign that the unemployment insurance system is “more stringent when there are vacant jobs, and more generous when unemployment is high” in order to solve employment difficulties in many sectors (construction, hotels, restaurants, etc.). “The principle is simple: when things are going well, the rules should be more motivating and when things are less good, they should be more protective,” said Olivier Dusupt of Microphone France. All the difficulty now lies in determining the criteria for changing the unemployment insurance system according to the economic situation:

  • What indicators will be taken into account to determine the good performance of the labor market? Should these criteria be differentiated according to regions?
  • What criteria will the government play to encourage job seekers to return to the path of active life? “We will not go into the amount of compensation,” the Minister of Labor had recently indicated to JD. But “on the other hand, one can ask about the conditions for entering the system – six working months out of twenty-four today – and about the duration of compensation.”
  • Who will be affected? How will job seekers be informed of any changes? How do we make sure that the future system is readable?

Here are the questions that will fuel the consultations over the coming weeks. Bilateral meetings with trade unions and employers’ organizations must now be organized. The closing meeting will be held on November 21 to implement the decree “as soon as possible,” the delegation accompanying Olivier Dusupet insists.

​​Unemployment insurance is an allowance paid to private sector employees who have lost their jobs. The right to compensation is calculated on the basis of the previous salary of the unemployed person. Unemployment insurance plays two roles: it helps the financially unemployed manage their job loss, by maintaining their purchasing power and living conditions. It also offers a solution to get back to work through personal support. The allowance is paid during periods of training, business creation or retraining.

Unemployment insurance reform: what has really changed for the unemployed?

Unemployment insurance reform has been ongoing since 2019, but new changes were implemented in 2021 and 2022. Here are the four main points of unemployment insurance reform:

  • new allotment account;
  • Reducing unemployment benefits (deterioration) for people with high incomes;
  • In addition to the unemployment contribution;
  • Change the minimum working time to obtain unemployment insurance.

This reform provides for compensation of self-employed and resigned employees of the retraining project, under certain conditions. The minimum working period for unemployment benefit increases from 4 months to 6 months of work in the 24 months preceding the end of the last decade.

How does unemployment insurance and compensation work?

Unemployment insurance or ARE (return to work allowance) is calculated on the income of the last 12 months, taking into account the days worked. The unemployment insurance reform provides for new calculation rules, setting the average monthly income including working days and periods of inactivity. For higher salaries, a depreciation may be applied to the amount of the allowance, with a 30% reduction after 8 months of compensation.

Private unemployment insurance for whom?

Private unemployment insurance is insurance that makes it possible to compensate for a decrease in income after a job loss. It targets business leaders as a major guarantee, and the latter does not benefit from the help of Pôle Emploi. It can also relate to employees who want help in addition to traditional unemployment insurance.

Join the unemployment insurance system

Unemployment insurance is mandatory for all private sector employees and is financed by them in the form of salary deductions. All private sector employers must join the unemployment insurance system. Solidarity, the allowance makes it possible to provide the best support to former employees of low income, who prefer those who benefited from a high salary.

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