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Unemployment Insurance: Winners and losers of the new rules

Ⓒ AFP/Archives – PHILIPPE HUGUEN – | Logo “Pôle emploi”, March 9, 2017 in Dunkirk

The unemployment insurance agreement, the bulk of which comes into effect on Wednesday for three years, makes losers among seniors and employees chaining short contracts, but winners at the executives, according to Unédic figures.

– No change for current recipients –

The new rules do not affect the 3.6 million jobseekers who have already started unemployment benefits, who will remain under the regime applicable at the time of their loss of employment. They will keep their current allocation and their duration of compensation.

The new agreement only applies to new recipients.

– Short contracts: more losers than winners –

Two changes concern employees who chained very short contracts.

The first positively. Easing the conditions of affiliation to the scheme will allow 3% of new recipients to access unemployment insurance faster (100 days on average), while 1% would not have acceded to the rights with the current rules .

Among temporary workers, whose specific rules (Annex 4) will disappear, 11% will get compensation faster and 4% will access it while it was not the case until then.

But once compensated, the new method of calculating benefits will be less favorable to new recipients who have chained contracts of less than a week.

At a constant economic situation and structure of employment, in the year of the cruise, 810,000 people (21% of people receiving an allowance during the year) will have a lower income, allocation and activity income combined, compared to they would have perceived with the current rules. Of these, 70,000 (2%) will report a “loss of 10% to 30%”. People whose allowance is between 750 and 1.300 euros will be the most affected.

On the contrary, 150,000 people (4%) will gain.

The calculation formula was modified to put an end to a situation that favored, with equal work and pay, people chaining contracts of less than a week.

The Unédic takes the example of two people who worked for 18 weeks – one with a single CDD, the other with 18 CDD 5 days (Monday to Friday) – for a total remuneration of 6,000 euros. With the previous rules, the first received a daily allowance of 31 euros, against 38.69 euros for the second. With the new rules, both will receive 31 euros.

– Young seniors compensated for a shorter time –

In total, in a year of cruising, 37,000 job seekers aged 50 to 55 will have a shorter indemnity period than under the current regime, because of the tightening of the entry rules in the “senior sector”.

From 1 November, the unemployed will fully enter this category, which entitles them to a maximum period of compensation of 36 months instead of 24, 55 years, against 50 years today.

In compensation, the injured beneficiaries will be able to benefit from a complement of hours of training up to 500 hours.

– Frameworks compensated more quickly –

Relaxation of the “deferred compensation” rules will allow job-seekers who have received high end-of-contract benefits, mainly executives, to wait less for compensation. The calculation of the deferred will be more favorable to them and the delay can not exceed 150 days, against 180 today.

The Unédic does not indicate how many people will win.

– Business creators will wait –

Jobseekers wishing to start their business, previously spared, will now be affected by the “deferred compensation”. Therefore, if they have received heavy end-of-contract payments, they must wait before being able to receive the Arce, a financial assistance paid in two installments to unemployed entrepreneurs, whose amount is 45% of their remaining allocations.

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