relaxed rules, but reform confirmed

relaxed rules, but reform confirmed

In Paris, April 5.

The government has announced five measures to “protect” the unemployed during the Covid-19 crisis. But this device confirms the will of the executive to maintain its overhaul of the 2019 compensation rules. At the risk of reinforcing precariousness in a context of recession.

“Protect the most vulnerable.” On Wednesday, the Minister of Labor announced several “Emergency measures” in unemployment insurance. Goal : “Leave no one by the roadside”, explains Muriel Penicaud, and in particular “The most vulnerable”. But if the new temporary rules adopted by decree should reassure, in part, some unemployed people about their fate during the confinement period, they also testify to the will of the executive to go through with its insurance reform decided in 2019. An overhaul of the rules for the care and compensation of job seekers much criticized by the unions. At the start of the Covid-19 health crisis, they were delighted with the postponement to 1er September of the entry into force of part of these new rules which were originally intended to apply on 1er April. But their hope that the reform would be purely suppressed has just been showered by the minister.

In front of the “Confinement situation and the consequences of the Covid-19 epidemic on the limited labor market[a]nt the job recovery opportunities of the unemployed “, the Ministry of Labor therefore announced, this Wednesday, five measures. Including the maintenance of the payment of benefits to all job seekers arriving at the end of entitlement. Concretely, all the unemployed who have exhausted their rights to compensation, and this since March 1, will see these extended “Until the end of the calendar month in which the end of confinement occurs”. Their allowances will therefore be paid “At this stage until May 31, 2020”. In addition, those who resigned from their post before the health crisis with a view to changing jobs, and who, in view of the crisis, ultimately could not join their new business, will be able to benefit from unemployment benefits, according to relaxed rules.

No reduction in benefits during the health crisis

Entry into force on 1er November, as part of the first phase of the implementation of the unemployment insurance reform, the degression of benefits mainly affecting unemployed managers is also frozen. The system which provides for allowances to be reduced by 30% from six months of compensation is “Suspended for the duration of the health crisis”. But no question, however, to blow up the second wave of redesign shifted to 1er September. And in particular the future rules for calculating the amount of the allowance, much criticized by the unions. The latter provide that future periods of inactivity will be taken into account for the determination of the “daily reference salary”, used as a basis for calculating the amount of compensation. This should be very expensive for some unemployed people, especially those who alternate the CDD interspersed with period of unemployment.

An evolution confirmed this Wednesday by the Minister, who does not intend to reconsider this measure. And therefore wants to carry out its reform to the end. But by making a gesture, since she also announced that“Exceptionally, periods of inactivity not covered by an employment contract during the period of health crisis will not be taken into account” to determine the level of compensation. These three months of confinement will also have no effect on the calculation of the “reference period” during which the minimum membership period required for the opening of rights is sought, since this will be extended correspondingly, twenty-seven months instead of twenty-four. Enough to provide some job seekers with some short-term security, but without giving them real guarantees for the future. Not very reassuring for all those who will lose their jobs because of the looming economic crisis.


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