allowance, conventional termination, seniors… What threatens the unemployed in 2024

While the unemployment rate has started to rise again in recent months, Elisabeth Borne receives her ministers Bruno Le Maire and Olivier Dussopt this Monday. Objective: find solutions to reverse the trend, even if it means further reducing the rights of employees and the unemployed.

Bad news for Emmanuel Macron and his government. The number of Ple emploi registrations without activity increased by 0.6% in the third quarter. To reverse the curve, Prime Minister Elisabeth Borne receives her ministers Bruno Le Maire and Olivier Dussopt this Monday. Here’s what’s already waiting for you in 2024.

Towards a reduction in unemployment compensation for seniors

It’s no! The government has asked unions and organizations to review their copy on new unemployment compensation rules. In particular, both camps had to find a way to achieve 440 million euros in savings over the period 2024-2027 but the guarantees were deemed insufficient by Matignon, particularly concerning seniors.

The current unemployment benefit rules are therefore extended until June, to avoid a breach of rights and non-payment of compensation. In the event of no agreement, the government will have free rein to choose the formula that suits it best.

For his part, Bruno Le Maire proposed to reduce the duration of unemployment compensation for those over 55 to align it with those of other unemployed people, i.e. 18 months maximum compared to 27 currently. I see no reason for there to be a longer period of compensation, it is total hypocrisy, a way of putting them into early retirement, justified the Minister of the Economy on France Info.

Objective of the boss of Bercy, encourage the employment of seniors and aim for full employment. We consider that the second objective has been achieved below 5% unemployment compared to 7% today. But as far as seniors are concerned, the figures are quite different since 36% of 60-64 year olds are currently working.

Limit conventional terminations

Clearly very inspired, Bruno Le Maire also intends to reduce the time limit for employees to appeal against their company following dismissal. It also targets unemployment compensation schemes which fuel early departures or even layoffs, contribute to senior unemployment and put a strain on unemployment insurance accounts. Precisely in the government’s sights, there is conventional terminations, a device which allows an employment contract to be amicably terminated, including a permanent contract.

Since 2008, conventional termination has allowed the employee to benefit from unemployment benefits, unlike a resignation, and the employer to not have to go before the industrial tribunal. According to the Directorate of Research Animation, Studies and Statistics (Dares), there were 500,000 such ruptures in 2022. Above all, according to the government, this system and the compensation it allows to receive does not encourage people to look for or return to work.

A new calculation of the retained allocation?

In the draft agreement between the unions and the employers included in particular a new calculation of unemployment benefit over 30 days, including January, February, March, May, July, August, October and December. This measure de facto reduces the number of annual days compensated by 5 or 6.

The unions fear a further reduction in the rights of the unemployed after the reform which reduced the rights of beneficiaries, not in terms of the amounts, but in terms of the duration of compensation. The duration now varies depending on the unemployment rate. Thus, if the unemployment rate is less than 9%, the duration of compensation for job seekers is reduced by 25%respecting a minimum duration of 6 months.

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