Unemployment insurance: a decree published on Friday provides for a 40% reduction in the duration of the allowance


Unveiled on Christmas Eve, a provision of the new unemployment insurance reform – a reduction in the duration of compensation by 40% if unemployment drops below 6% – aroused the anger of the unions on Monday. On the form, “it is not acceptable to make an announcement on December 23 without exchanges and without consultation. It is really in very bad taste”, lamented Cyril Chabanier (CFTC) on BFM Business.

On the merits, “it is a question of considering that any unemployed person is somewhat by his fault (…). It is an ideological position, of the order of collective punishment, it is inadmissible “, denounced François Hommeril (CFE-CGC) on France Inter.

The Ministry of Labor sent the social partners on Friday afternoon the draft decree implementing this reform. As announced at the end of November, this text provides for a 25% reduction in the duration of compensation for all jobseekers opening rights to unemployment insurance from February 1 in mainland France.

A duration of compensation reduced by 40%

But, new fact, it also envisages that with an unemployment rate below 6% (it is currently at 7.3%), the duration of compensation is reduced by 40% and not by 25%. The presentation sheet of the decree specifies that “the conditions of application of this provision are referred to a decree in Council of State taken after consultation” with the social partners.

In presenting the reform this fall, the Minister of Labor Olivier Dussopt had mentioned the possibility of a hardening in the event of unemployment below “5%”, or the level at which we can speak of “full employment”.



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