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Compensation and accompanying of Jobseekers In france
 

Compensation and accompanying of Jobseekers In france

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It is as part of public service for employment that are organized, in France, compensation and support for jobseekers. Indeed, the public service for employment has missions for: reception, ...

It is as part of public service for employment that are organized, in France, compensation and support for jobseekers. Indeed, the public service for employment has missions for: reception, orientation, training and integration and it contains placing, compensation and jobseekers accompanying.

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    Compensation and accompanying of Jobseekers In france Compensation and accompanying of Jobseekers In france Document Transcript

    • DAJ 266 - SEPTEMBER 2012COMPENSATIONAND ACCOMPANYINGOF JOBSEEKERSIN FRANCE
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    • Contents PA RT 1The public service for employmentand the compensation system of jobseekers page 4 PA RT 2Benefits offered to jobseekersto facilitate the return to work page 12 PA RT 3Social welfare page 31 APPENDIXWorking outside Franceand job loss protection page 33 FACTS & FIGURES page 34
    • Public Services for EmploymentThe “Service Public de l’Emploi” helps jobseekers accessand return to work, and to secure career developmentfor all workersIn France, organizations grouped under the Service Public de l’Emploi, providebenefit and support for jobseekers. The SPE fulfils his missions through thereception, the support, the training and the integration of jobseekers. Hismissions include unemployment benefits and the placing of jobseekers.The service public de l’emploi is made up of several types of organizations,each of which provides specific services:• Public services responsible for employment and professional equality :Pôle Emploi *, the AFPA, the UNÉDIC.• Town halls and local public initiatives promoting youth workforce inte-gration, and housing for working residents may also be involved• In addition, public or private organizations offering placement, integration,training, and jobseeker support services that have signed agreements withthe state, as well as temporary employment and placement agencies mayalso be involved.Various agreements exist for planning collaborative initiatives.Each regional administration office of Pôle Emploi has a regional joint commission(IPR) which participates in the development and monitoring of employment policyat the regional level. The IPR ensures that unemployment compensation agreementsare respected and gives rulings on a number of individual jobseekers’ situations.See opposite for more information about these organizations.* created by the merger of the Assédic and ANPE networks on December 19, 2008 (Frenchlaw 2008-126 of February 13, 2008 reforming the country’s public services for employment.) 4
    • PA RT 1THE SERVICE PUBLIC DE L’EMPLOI (SPE) PARTICIPATING ORGANIZATIONSDivisions of the Ministry for EmploymentTheir mission is to implement the policies set by authorities in terms of labor, employment andprofessional training. These divisions also take disciplinary actions against jobseekers if they failto meet obligations (at the national level: the General Delegation for employment and professionaltraining ; at the local level: regional agencies for business, competition, consumption, labor, andemployment “Direccte”).Pôle emploiA public agency resulting from the merger (December 19, 2008) between the ANPE (the nationalagency for employment) and the Assédic. Pôle Emploi assumes the following responsibilities:• Registering jobseekers and maintaining the database of the country’s jobseekers,• Counseling, personalized coaching, and facilitating contact between jobseekers and employers,• Unemployment compensation through UNÉDIC or the State,• Labor market analysis and assistance to employers for hiring and redirection of their salariedemployees,• Supervision of the job search process,• Public assistance to employers and jobseekers in order to facilitate their return to work.L’UnédicThe UNEDIC is a jointly-managed non-profit organization responsible for unemployment insurance,as well as determining and guaranteeing the conditions for issuing unemployment insurance (andrelated benefits) in accordance with decisions made by social partners. The UNEDIC also ensuresfinancial management of the unemployment insurance system and finances Pôle Emploi and pro-vides studies, analyses, publications, and information for decision-making required by social partnersand her departments. It supervises the conditions for unemployment insurance benefit awards(compensation, contribution collection) through representatives acting on its behalf (Pôle Emploi,URSSAF, and unions for social charge contribution collection.L’Afpa (National Association for professional Training for Adults)The AFPA operates under the Ministry for Employment and plays a leading role in adult continuingeducation. The AFPA deals with the full range of issues related to training and human resourcessupport. It serves both jobseekers and employee, and provides training tailored to the needs ofthe labor market.Maisons de l’Emploi (local job centers)Founded as non-profit organizations or public interest groups, these structures include requiredmembers (the municipality that hosts the project, state government, Pôle Emploi), members invitedupon request (regional and departmental representatives) and associated partners (AFPA, consularorganizations, etc.). Their objectives are:• to coordinate public service employment initiatives,• to watch the local economy,• to anticipate labor needs and help the region adapt to economic changes and restructuring,• to integrate, guide and accompany jobseekers, salaried employees and entrepreneurs. 5
    • A sole protection system made up of two schemesSince April 1984, the French system for involuntary lossof employment protection consists of two schemes :• The unemployment insurance scheme• The solidarity schemeThe unemployment insurance system provides replacement revenue forthose who have involuntarily lost their jobs, and who have contributed tothe national unemployment insurance scheme while working.The solidarity scheme provides payments to : unemployed persons whoseentitlement under the unemployment insurance scheme has come to anend, certain categories of unemployed persons who are not entitled tounemployment benefits, and to some older jobseekers.The UNÉDIC contributes to Pôle Emploi’s investments and activities up to 10 % ofthe amount of the unemployment insurance contributions collected and paid byemployers. Pôle Emploi also receives public funding. 6
    • PA RT 1 unemployment insurance Mutual aid benefits Social partners State (Art. L.5422-20 of the LC) Unédic General Delegation for employment (Art. L.5427-1 of the LC) and professional training • Management of unemployment • Establishing qualification insurance guidelines• Prescribing rules for the application • Financing mutual aid funds • Assessment of devices • Financial Management Agreement Two-party agreement Three-party on the collection Unédic - Pôle emploi agreement of contributions on the payment Unédic payable of unemployment State by employers benefits Pôle emploi Acoss Pôle emploi Pôle emploi (Art. L.5427-1 of the LC) CCMSA CCVRP • Implementation of compensation and assistance CMAF • Exploration of the labor market CPS • Database of job offers CCSS • Recruitment assistance for companies (Monaco) • Registration and support for jobseekers • Job searching follow-up • Collection of CRP/CTP, expatriate, and entertainments’technician contributions territorial joint Regional joint commission commission (Art. L.5312-10 and R.5312-28 of the LC) • Suggestions for rulings on • Ensure that unemployment insurance individual cases approved agreements are correctly applied by regional joint authorities • Rulings on individual cases 7
    • The unemployment insurance schemeSince its inception, the unemployment insurance schemehas been Collectively managed by social partners.On December 31, 1958, representatives from both national and inter-pro-fessional associations of employers and employees (social partners) signedan agreement to establish a social protection scheme for those who haveinvoluntarily lost their job.Since then, the regulations have been updated by a process of continuouscollective bargaining and agreements reached by social partners. The pro-visions for these agreements are subject to a specific legislative frameworkwhich defines social partners’ scope of involvement and determines theimplementation terms of the agreement . Once approved by the government,the conditions within the scheme become binding upon employers andemployees alike. The agreements are negotiated and fixed for set periodsdepending on the financial resources of the scheme, and on anticipatedchanges in unemployment and job market fluctuations.The means of collecting contributions and allocating benefits are alsoappended to the agreement in force. The agreement and regulations alsoinclude measures to facilitate job seekers’ return to work.In the context of unemployment insurance, the concept of parity is based on equalrepresentation of employers’ associations and trade unions in the drafting andinterpretation of the regulations, as well as in UNEDIC’s management of the scheme.Employer’s organizations Trade unions(CGPME, MEDEF, UPA) (CFDT, CFTC, CFE-CGC, CGT, CGT-FO)• They negotiate agreements at national and inter-professional levels from whichis defined the unemployment insurance scheme regulation.[Standard regulations and protocols regarding specific categories of employees,“accord d’application” for the implementation of the standard regulations andprotocols.• They jointly manage the UNÉDIC and are represented on Pôle Emploi’s Board ofDirectors.• At the regional level, they ensure the effective implementation of the unemploy-ment insurance agreement (see page 4) within each Pôle Emploi department andconstitute the regional joint authorities (IPR).UNEDIC delegates the payment of benefits to Pôle Emploi. 8
    • PA RT 1The unemployment insurance scheme is designedfor employees who have held a work contractin most of professional sectors.Initially applied only in mainland France, the scheme was extended tooverseas departments and the territories of Saint Pierre and Miquelon,St. Barthelemy and St. Martin.Initially, the scheme only covered industries with employer’s associations.It gradually expanded to cover all private sector employees holding awork contract.Unemployed public sector workers are directly compensated by theiremployers “auto insured”, according to the same rules as employees whoare covered by the unemployment insurance scheme. However, somepublic sector employers have the possibility to join the unemploymentinsurance scheme.Depending upon the employer’s status, this adhesion may be revocableor irrevocable.A time-line of the scheme’s extension to different professional sectors1959 Industry and trade sector. Members of the CNPF (employer’s association)1967 All branches of industry and trade sector(+ voluntary affiliation of public utilities of an industrial and commercial character)1974 - 1977 Integration of the agricultural sector1979 - 1980 Extension to domestic employees and child minders1987 Opening, through revocable voluntary membership only,to local administrations, administrative public utilities, other than thoseof the state, for non statutory personnel1999 Opening, through revocable voluntary membership only, to universities,”grandes écoles” and public utilities of a scientific and technological character 9
    • The solidarity schemeThe solidarity scheme is the result of legislative provisions,implemented through decrees.The solidarity scheme is an assistance system which is fully financed by thestate budget. It was set up to take over from the unemployment insurancescheme in cases where the latter does not apply or when it’s involvementhas ceased. It is a subsidiary to the unemployment insurance scheme.The rules for awarding allowances of the solidarity scheme are written bythe public authorities, but benefits payment is managed by Pôle Emploi. 10
    • PA RT 1Schemes funding:• Unemployment insurance scheme: by contributions fromemployers and employees,• Solidarity scheme: by the state budget.• Unemployment insurance is funded by obligatory contributions deducteddirectly from wages*. Their rates are set by the social partners dependingon the expenses to be covered.Current contribution rate as of January 1, 2012(for information purposes only) Total contribution 6,40 % • by the employer 4% • by the employee 2,40 %Earnings subject to contributions are limited to four times the maximumSocial Security income limit (€12 124 per month for 2012).• Solidarity scheme funding is provided by the state budget.* As of January 1, 2011, contributions are collected by the URSSAFs (the national collectionagencies for social contributions).The implementation of both schemes measures is assured byPôle Emploi, which has agencies located throughout France.An agreement between UNEDIC and Pôle Emploi signed on December 19,2008 specifies the conditions under which Pôle Emploi manages, onbehalf of the UNEDIC, the allocation of unemployment insurance benefits.The management of solidarity benefits has been entrusted to the sameinstitution : Pôle Emploi. Therefore, each unemployed person only dealswith one agency : Pôle Emploi. 11
    • Benefits available to jobseekersObjective: facilitate the return to workAssistance and replacement incomeIn addition to measures facilitating the reconversion, jobseekers can, undercertain conditions, benefit from allowances to replace their salary.To have unemployment benefits, jobseekers must prove that they are takingongoing initiatives to find a job, and agree to counseling, support or trainingoffered by Pôle Emploi, and any reasonable job offer presented as part ofa personalized job access project (Projet personnalisé d’accès à l’emploiou PPAE).PPAEOnce a jobseeker has registered, and after an in depth interview betweenthe jobseeker and Pôle Emploi, a PPAE is developed.It determines:• The types of job that correspond to the jobseeker’s qualifications andskills, to standard wage of the profession and to the geographic area ofthe search ;• The types of job the job seeker would like to consider for reconversion ;• The training necessary for job outlined by the project, with priority givento training programs provided as part of a work contract.Throughout the unemployment period, Pôle Emploi monitors and updatesthe progress of the PPAE. Additional assistance may be provided to facilitatethe return to work. 12
    • PA RT 2BENEFITS FOLLOWING LAYOFFS DUE TO ECONOMIC REASONAs of September 1, 2011, companies with less than 1,000 employees, or in recoveryproceedings or judicial liquidation regardless of their number of employees, mustoffer a CSP contract to each employee they intend to lay off for economic reason.A CSP contract allows an employee to benefit from extensive and personalizedsupport, and also to receive immediate compensation. The benefit represents 80 %of the former gross salary, as long as the employee can give proof of at least oneyear seniority in the company (by default, the compensation is equivalent to return-to-work benefits). CSP contracts are for 12 months. 13
    • Measures to facilitate return to workTo facilitate the return to work for unemployed workers whoreceive benefits, unemployment insurance agreement providescertain qualifying conditions for additional benefits including :• Differential reconversion compensation for certain whoaccept a lower-paying job than their previous position,• Assistance to buy a business or to start a new business(see page 25),• Return to work incentives based on combining employmentearnings with unemployment insurance benefits (see page 25).Additional measures are determined by the Boardof Directors of Pôle Emploi, whose budget includes specialprovisions for the financing of such initiatives.Part of UNÉDIC’s contribution to the funding of Pôle Emploiis especially reserved for investment and operationsin this area (see page 7).Pôle Emploi assistancesExcept for services targeted to specific types of jobseekers, the assistanceprovided by Pôle Emploi is intended for all jobseekers, regardless of whetheror not they qualify for unemployment insurance.• Assistance services are aimed at facilitating skill development through :- providing training before recruitment,- POE (“operational preparation”) training for specific job,- approved training courses,- assistance for individual training,- compensation for training course completion (R2F),- assistance to cover costs associated with training (meals, accommodation,transport),- assistance to have work experience recognized,- assistance for employers as part of a professionalization contract ; 14
    • PA RT 2• Assistance to remove barriers to finding a job :- support for returning to work (travel expenses, dual residence, or movingcosts when a new job is far away from the person’s home),- financing assistance for obtaining a drivers license- job search assistance* (travel expenses, transportation costs),- childcare assistance* (for single parents returning to work or training). * These benefits are reserved for those with limited means and those who do not qualifyfor unemployment compensation. 15
    • Wage replacement income• Intended to support jobseekers’ reconversion efforts.• Complemented by individual coaching as part of the PPAE.Salary replacement income is comprised of different benefits dependingon the jobseeker is registered under :• The unemployment insurance scheme,• The solidarity scheme.Pôle Emploi is responsible for the payment of allowances for both schemes.It also communicates essential data to other organizations (for example,to retirement funds, the national health care system, etc.).Benefits paid by Pôle emploiFor the unemployment insurance scheme managed by the UNÉDIC :• Allocation de retour à l’emploi , (ARE) : unemployment benefit• Specific reconversion allowances (ASR) as part of the PPAE (see page 13).For the solidarity scheme :• Allocation temporaire d’attente (ATA)• Allocation de solidarité spécifique (ASS) • Allocation transitoire de solidarité (ATS)The AS-FNE agreement, a measure for early-retirement redundancy, was withdrawnby Finance law No. 2011-1977 of Dec. 28, 2011 (Art. 152). FNE agreements signed beforeOctober 2011 will remain in effect for the remainder of their term. 16
    • PA RT 2 Unemployment insurance compensation Conditions7 qualifying conditions1 To have already worked for at least 4 monthsYou must have worked for at least four months in the last 28 months (overthe previous 36 months for those 50 years old and over).If this condition is not met, professional training can be considered maycount as employment, within certain limits.2 Not to have voluntarily left the last employment,or the previous one if you have not worked 91 days since your resignation(see page 19 for exceptions)Situations of involuntary employment termination that qualify for unem-ployment benefits include: the end of a CDD (fixed-term job contract),dismissal regardless of the cause, and the conventional breach of a permanentjob contract. In addition, if you have resigned from a position and havenot found new employment within 4 months after this resignation, you canrequest your situation to be reviewed by the regional joint commission(see page 4). The regional joint commission may allow benefits based onreconversion efforts made by the individual. Benefits may start from 5 thmonth after the resignation.3 To be physically capable of workingIn case of illness, the unemployment benefit is not paid. The person mayreceive a daily allowance from the social security.4 To be registered as a jobseeker or to be in trainingRegistration as a job seeker is made at Pôle Emploi. Every month, job seekersmust update their situation. 17
    • Unemployment insurance compensation Conditions continuation5 Ongoing and effective job search effortsThis obligation is formalised in the PPAE. As of 2012, all jobseekers aresubject to this obligation (with the exception of those who were grantedexemptions job searching before 2012).6 To be under the legal age of retirement (60-62 years)*Nevertheless, the unemployed who have not yet worked the number of“quarter” (under all social security scheme) required to qualify for full reti-rement benefits (see page 31) are eligible for unemployment benefits forprescribed periods of time until they obtain the required amount of quar-ters. In every case it is not possible to go beyond the age of entitlementfor full retirement allowances (65 to 67 years).* As of July 1, 2011, pension reform Law No. 2010-1330 of November 9, 2010 and decreeNo. 2011-2034 the legal age of eligibility for retirement benefits has been revised and fullpension allowances will be progressively delayed.7 Residence in France or its territories Date of birth Legal age Full retirement of retirement benefits 1950 60 years 65 years After 01/01/1951 60 years 65 years After 01/07/1951 60 years, 4 months 65 years, 4 months 1952 60 years, 9 months 65 years, 9 months 1953 61 years, 2 months 66 years, 2 months 1954 61 years, 7 months 66 years, 7 months 1955 62 years 67 years 18
    • PA RT 2LEGITIMATE RESIGNATION CASESorder to follow his parents or legal guardian• Resignation of an employee who interrupts his work contract to follow a spousewho is moving for professional reasons.• Resignation of an employee who interrupts his work contract in the event ofmarriage or PACS involving a change of residence,if the period between resigningand getting married (or PACS) is not more than 2 months.• Breach at the employee’s initiative of a ”contrat d’insertion par l’activité” or“contrat emploi jeune” to take a new job or to follow a training course.• Breach at the employee’s initiative of a subsidised employment contract* to takea fixed-term position (CDD) of at least 6 months, a permanent position (CDI), or tofollow a training course.• Resignation from a paid position that does not qualify the beneficiary for unem-ployment benefits, where the beneficiary requests payment of the remainder ofnon-exhausted compensation.• Resignation as a result of non-payment of wages for time worked.• Resignation following criminal acts. Proof of complaint being lodged with the“Procureur de la République” is required.• Resignation due to a change in residence as a consequence of domestic violence.Proof of complaint being lodged with the “Procureur de la République” is required.• Resignation of an employee who, following a lay-off or the end of a fixed-termemployment contract, accepts a employment contract that he voluntarily interruptsduring or after a trial period, within a limit of 91 days.• Resignation of an employee with 3 years of continuous affiliation with Pôle Emploi,and who voluntarily leaves his job to take another permanent position which theemployer terminates during or after the trial period within a limit of 91 days.• The termination of an “indivisible” employment contract specifically for a marriedcouple when it includes an automatic termination clause if the employee leaves theposition due to the dismissal or retirement of his or her spouse.• Resignation of an employee who wishes to apply the safeguard clause providedfor journalists under the condition that compensation benefits were in fact paid.• Resignation of an employee who interrupts his work contract to take a civilianservice contract or to do volunteer work towards international solidarity efforts,or for a non-profit organization for a minimum of one year.• Resignation of an employee in order to buy a business or to start a new businesswhose activity ceases for reasons beyond the control of the entrepreneur.* Contrat unique d’insertion (CUI) , CUI-CAE (contrat d’accompagnement par l’emploi), CUI-CIE(contrat initiative emploi) . 19
    • Unemployment insurance benefitsThe amount of benefits payable to a person is relatedto his previous earnings.The benefit amountThe amount of benefits is calculated, using information provided by theemployer, on the basis of previous earnings subject to unemploymentinsurance contributions.Compensation for loss of employment such as redundancy payment orCompensation for outstanding days of pay holiday, is not taken into account.Above a certain amount of benefits, social contributions are deducted.UNEMPLOYMENT BENEFITS AS OF JULY 1, 2012*The amount of benefits may be reduced depending on the beneficiary’stotal hours worked (such as part-time) and on their particular situation. ParticipationMonthlygross* Daily wance** Deductions*** ((additional retirement) Under 75 % of gross salary - - € 1,128 Between Minimum benefit € 1,128 - - - € 28,21 per day € 1,235 Between 40.4 % of gross 3 % of previous € 1,235 - per day + € 11,57 - salary € 2,042 per day (fixed) If allocation amount is > daily minimum wage Between (€ 47 as of 1/1/2012) € 2,042 - 57.4 % of 3 % of previous salary • 6.2 % of allocation € 12,124**** gross per day x 0.9825 (CSG) • 0.5 % of allocation x 0.9825 (CRDS)* subject to unemployment insurance contributions.** the benefit is daily and paid for every day of the month. It is multiplied by the numberof days in the month (30 or 31, 28 or 29 in February).*** For beneficiaries in Alsace Moselle who receive allocations greater than the minimum wage(SMIC), an additional 1.5% is withheld, in addition to the amounts indicated in the table above.**** Maximum unemployment insurance contribution limit. 20
    • PA RT 2REDUCED BENEFITSPart-time work• For employees with part-time jobs, the fixed or minimum benefits amount is reduced.Example: A person who worked part-time may receive, depending on the situation,half of the total of the fixed amount or of the minimum benefits amount.Jobseekers who receive an invalidity pension or an old age pension• Jobseekers who receive certain types of invalidity pension (category 2 or 3) cancombine this amount with their return to work benefits under certain conditionsstipulated by the Social Security Code if the pension has been combined with previousearnings.• People between 50 and 55 years old who receive an old age pension are subject toa reduction of 25 % of their unemployment benefits. For those between 55 and 60,the reduction is 50%, and for those over 60, it is reduced by 75 %.SPECIAL PROVISIONS IN THE APPENDICES TO THE GENERALPROVISIONSTo take into account the particularities of certain professions, a series of specificprovisions are annexed to the “réglement general”. They concern the followingcategories of employees:Appendix 1 : Sales representatives, journalists, civil aviation personnel, childcareworkers and home care providers, lumberjacks and pieceworkers, agents workingon commissionAppendix 2 : Maritime trade workers, fishermenAppendix 3 : Dock workersAppendix 4 : Contract and temporary workers, temp agency employeesAppendix 5 : Those who work at homeAppendix 6 : Employees of a company with no operations site in FranceAppendix 7 : Disabled employees with special, protected workshop jobsAppendix 8 : Workers and technicians for: recording studios and sound editing, filmand television production, radio, broadcast media and entertainmentAppendix 9 : Employees working outside of France or for international organizations,embassies or consulatesAppendix 10 : Performance artists and theatre workersAppendix 11 : Those who have worked under a fixed-term contract (CDD) and whohave obtained financial assistance for expenses associated with an individual trainingprogramAppendix 12 : Rates used to calculate allocations for certain professions 21
    • Unemployment insurance benefit Duration of benefitsUnemployment insurance benefits is paid monthly upto a maximum number of months determined by ageand duration of time worked.Unemployment benefits are paid on a monthly basis on condition that thejobseeker updates his status.To be eligible for benefits, jobseekers must have already work for at least4 months (122 days or 610 working hours) over the previous 28 months(for jobseekers under 50), or 36 months (for jobseekers aged 50 and over).Only periods of time worked that have not already been used for unem-ployment insurance eligibility may be taken into account. The duration ofbenefits depends on the duration the jobseeker has been affiliated :1 day of affiliation = 1 day of benefitAt the end of a job contract, the maximum limit of insurance benefits is24 months (730 days) for those under 50 of age, and 36 months (1,095 days)for those aged 50 and over.Under certain conditions, benefits may be paid until retirement withoutapplication of the maximum duration to those aged 61 and over who are noteligible for retirement benefits. Benefits are never paid immediately, exceptin the case of resumption of payments already approved (see opposite).Benefits until retirementThose who have received benefits for 365 days minimum and who are aged 61 orover can be compensated beyond the statutory periods if they have not workedthe minimum number quarters required to qualify for retirement benefits untilthe number of quarters needed is reached. Full retirement eligibility is grantedbetween 65 and 67 on condition that proof is provided of having made retirementcontributions for 100 quarters (25 years), including 12 years as a salaried employee. 22
    • PA RT 2THE STARTING POINT FOR PAYMENT OF BENEFITSIn all cases, that “7 days non-entitlement” period applies from the date of registryas a job seeker*.In addition, if the person concerned has received:• Compensation for outstanding days of pay holiday, a delay period correspondingto the number of days covered by this compensation is calculated;• one or more severance indemnities, of which the amount is above the legalcompensation (meaning the minimum compensation amounts set by French law),Pôle Emploi calculates a “specific” delay period taking account of the supralegalindemnity.The specific delay is limited to 75 days.*except when a previous claim has already led to this delay within the last 12 months.Example• Work contract ending on March 31• Compensation for outstanding days of paid holiday : € 646• Severance indemnity above the legal minimum: € 1 372• Daily salary: €38 corresponding to a salary of € 1 140 per month“Paid holiday” delay period........................................................................................................................17 days(Pôle Emploi calculates the “paid holiday” delay period as follows : 646/38)”Specific” delay period (1 372/38).........................................................................................................36 daysTotal...........................................................................................................................................................................53 daysThe jobseeker will receive benefits from 31st of May - 7 days after the end of the53 days period if his registration is in before the 24th of May . 23
    • Unemployment insurance benefits Interruption of benefit paymentsBenefits payments interruption cases are specified by law.A return to work does not automatically suspend benefitspayment.The payment of insurance benefits will be stopped on the day that theclaimant :• Is no longer registered as a jobseeker, unless he is granted an exemptionfrom job searching ;• Is in receipt of, or is entitled to receive benefits from the Social Securityfor sickness, accident at work, or work related illness ;• Is disqualified from receiving unemployment benefits by administrativedecision or following his exclusion by Pôle Emploi, in particular due torefusal of a job offer without a legitimate reason ;• Has exhausted his rights, in which case solidarity benefits may be granted(see solidarity benefits) ;• Has obtained the total number of quarters of contributions required toreceive full retirement benefits (see page 31) ;• Has reached the age of entitlement to a full retirement benefits (65 to 67) ;• Benefits from “free choice of activity” provisions for the care of a childunder three years old ;• Is no longer living in France or in its territories ;• Has provided inaccurate information or made false statements in orderto receive benefits ;• Has completed a civilian service contract.Return to work• Maintaining partial unemployment benefits along with one’s wages is possible.However, this is usually limited to 15 months, except for those aged 50 and over ;• Differential assistance for reconversion may be paid to a jobseeker who acceptsa lower-paying position (see opposite). 24
    • PA RT 2POSSIBLE BENEFIT ENTITLEMENT WHILE ENGAGEDIN REDUCED EMPLOYMENTPartial accumulation of unemployment benefits and wagesThere is a possibility of benefit entitlement while working in reduced activity.However, it’s limited to 15 months, except for people aged 50 years or over.The following conditions apply :• No more than 110 hours worked per month,• To still be registered as a jobseeker,• Not to have a salary exceeding 70 % of the previous one. In such a case, anumber of non entitlement days will be determined on the basis of the grossearnings of the new employment : gross earnings of the new jobDays of non entitlement to benefit = daily earnings reference levelFor employees aged 50 years or older, the number of days of non entitlement tobenefit is reduced by 20 %.Daily benefits are paid for the number of days corresponding to the number ofcalendar days of the month from which days of non entitlement benefit arededucted.Aide différentielle de reclassementThe “aide différentielle de reclassement” may be paid to the beneficiary if he acceptsa job whose pay, for a same number of hours worked, is at least 15 % less that ofhis or her previous position. Beneficiaries under age 50 must be registered with Pôleemploi for at least 12 months. Those aged 50 years and over can benefit regardlessof the duration registration.These two situations cannot be combined.Assistance for those buying or starting a new businessThis corresponds to the remainder of 45 % of the compensation due, and is paid intwo times as a capital.This capital is paid only if the person does not request to continue toreceive partial payment of benefits.EMPLOYEES WITH SEVERAL JOBS HAVING LOST ONE OF THEMWhen a beneficiary keeps a reduced employment or an occasional work at the samejob held before the loss of his full-time position, the payment of unemploymentinsurance allows him to be fully compensated for 15 months maximum (limit notapplicable to persons aged 50 and over) along with the income earned from theretained activity, provided that it corresponds to less than 110 hours worked eachmonth, and totals less than 70 % of the previous income from the lost job combinedwith the part-time or occasional work. 25
    • Solidarity benefitsSolidarity benefits is a fixed amount allocatedaccording to the jobseeker’s resources.L’allocation de solidarité spécifique (ASS)ASS is for people who have exhausted their rights to unemployment insurancebenefits, or to for people aged 50 years or older who have the possibilityto choose between unemployment insurance benefits and solidarity benefits.This form of aid may also be paid, under certain conditions, to certaincategories of workers not covered by unemployment insurance agreements :self-employed artists, certain fishermen and casual dockers.Allocation temporaire d’attente (ATA)ATA is for persons who find themselves in a situation where they are notentitled to unemployment insurance benefits, either because they have notworked at all, or not enough, or have not contributed.Allocation transitoire de solidarité (ATS)ATS is designed for jobseekers born between July 1, 1951 and Dec. 31, 1953who can provide proof of having worked enough quarters to qualify forfull retirement benefits, but who have not yet reached the legal retirementage (see page 18). ATS may be paid to those who have exhausted theirrights to unemployment insurance, or to complete unemployment benefitsin order to ensure a minimum level of income.Various measures encourage those who receive solidarity benefits to return towork : combining benefits with earned income, and monthly bonuses (see opposite). 26
    • PA RT 2RETURNING TO WORK IN THE SOLIDARITY SCHEMEThe solidarity benefit scheme provides incentives to return to work. These incentivesdepend on whether the paid work is more or less than 78 hours per month.Return to work with over 78 hours worked or non salaried activityASS beneficiaries who work 78 hours or more per month, and those who have a nonsalaried activity may be eligible to receive supplemental of income for up to 12 monthsunder certain conditions (by combining benefits and income for the first 3 months,and then for the remaining 9 months by receiving partial ASS, minus income frompaid work, plus a monthly bonus of € 150).Return to work with less than 78 hours per monthASS beneficiaries who work less than 78 hours per month, and those who receiveATA (regardless of the number of hours worked) can also receive additional incomefor 12 months. This supplement is calculated based on the wages of the new job :• During the first 6 months of the new position, no reduction is made if the grossincome earned is less than half the minimum wage (the SMIC as of Jan. 1, 2012,approximately € 779). Beyond this limit, the compensation is reduced by 40 % of theamount exceeding half the minimum wage.• During the next 6 months, the amount of the compensation is reduced by 40 % ofall of the income earned from the new job. 27
    • L’allocation de solidarité spécifiqueASS is paid for a renewable period of 6 months, as long asfinancial resources and active job search conditions are met.It concerns the long term unemployed who have exhaustedtheir rights to unemployment insurance benefits.The unemployed aged 50 years or more can choose betweenreceiving unemployment insurance benefitsor solidarity benefits.Qualifying conditions• Total income is limited to : € 1094,10 for a single person, and € 1719,30for a couple (as of January 1, 2012).• To prove five years of employment within 10 years before the contract ofemployment ended. Work includes periods of training or national service,(for those who stopped working for at least one year to care for a child orchildren, this period can be reduced under certain conditions).AmountThe lump sum varies depending on financial resources.For a single person as of Jan. 1, 2012 Monthly income Monthly benefit from 0 to € 625.20 € 468.90 from € 625.20 to € 1094.10 Monthly benefit equal to € 1094,10. minus earning € 1094.10 and above No benefitFor a couple as of Jan. 1, 2012 Monthly income Monthly benefit from 0 to € 1250.40 € 468.90 from € 1250.40 to € 1719.30 Monthly benefit equal to € 1,719.30 less income € 1719.30 and above No benefit 28
    • PA RT 2 L’allocation temporaire d’attenteATA is paid for a varying length of time accordingto the beneficiary’s situation and concerns :• Expatriated employees back to France who have notcontributed to unemployment insurance and who can prove182 days worked in a foreign country,• Ex-offenders released after two months or moreof imprisonment• Those seeking asylum 18 years of age and older, who haverequested political asylum from the Office Françaispour la Protection des Réfugiés et Apatrides (OFPRA)• Those receiving temporary protection and holdersof a temporary residence permit,• Those receiving subsidiary protection and holdersof a temporary residence permit,• Foreign victims of human being trade who hold a temporaryresidence permit and a certificate of protectionby the French State.Qualifying conditionsThose eligible for ATA must not earn income that exceeds the amount of the“Revenu de Solidarité Active” (RSA).Maximum amount of the RSA since January 1, 2012 Number of children Single person couple 0 € 474.93 € 712.40 1 € 617.40 € 854.88 2 € 759.87 € 997.36 Each additional child more € 189.97 more € 189.97Allowance amountThe amount set at € 330,30 per month (Indicative amount). 29
    • PA RT 2 L’allocation transitoire de solidarité (ATS) ATS is designed for jobseekers born between July 1, 1951 andDec. 31, 1953 who can provide proof of having worked enoughquarters to qualify for full retirement benefits, but who havenot yet reached the legal retirement age (see page 18). Thosein this category must also meet certain revenue requirements.ATS may be paid to those who have exhausted their rights tounemployment insurance (replacement ATS), or to complementunemployment benefits when the beneficiary’s income is lessthan the amount of ATS benefits (supplemental ATS).The ATS substitutes for retirement equivalent allocations (AER)from July 1, 2011 to Dec. 31, 2014.Conditions to benefit Replacement ATS Supplemental ATS Receiving unemployment benefits as Receiving unemployment benefits as of Nov. of Nov. 10, 2010 10, 2010, with rights ending after 60 years old At least 60 years old, with proof of having Be at least 60 years old with proof worked enough quarters to qualify for full of having worked enough quarters to qualify retirement benefits as of the date when for full retirement benefits unemployment insurance benefits run out Not yet reached the legal retirement age Not yet reached the legal retirement age (see page 18) (see page 18) Proof of income below a certain limit Proof of income below a certain limit (€ 1 619,52 for a single person, (€ 1 012,20 for a single person, € 2 328,06 for a couple) € 2 328,06 for a couple)AmountAs of January 1, 2012, the maximum daily ATS allowance is € 33.74. Themonthly amount corresponds to the number of days in the month x thedaily benefit amount. ATS benefit are paid until the person reaches thelegal age of retirement. The ATS amount is revised every year by decree. 30
    • PA RT 3 Social ProtectionCoverage of risks of illness, maternity and death.Health insurance(covering illness, maternity and death)A person with social protection prior to unemployment will continue tobenefit from health insurance (refund or daily benefits) as long as he/sheentitled to unemployment benefits.Social protection may then be extended for 1 year.Concerning the universal health coverage scheme, any person residing in France in astable and regular manner who is not entitled to any other type of health insurancecovering illness and maternity may at least benefit from a reimbursement ofhis/her medical, pharmaceutical or hospital expenses in accordance with the socialsecurity rates in force. 31
    • PA RT 3 Social ProtectionPeriods of entitlement to unemployed benefit countedfor pension contribution purposes.Basic systemFor people who have previously contributed:• Each period of 50 days of unemployment benefits is credited as a quarter(3 months) of retirement insurance, within a limit of 4 quarters per year ;• If the person no longer receives benefits, or does not receive benefit atall, periods of unemployment may, under certain conditions, be creditedup to a limit of 1 year, or 5 years for those aged 55 years and over, andwho have contributed for 20 years.Additional retirement benefitsTo supplement the basic system, additional retirement “points” are grantedto jobseekers who receive benefits and who have contributed to additionalretirement savings plans. Depending on the type of plan, it may be fundedby the Unédic, the state, the jobseeker him or herself, or the retirementplan itself.To receive full retirement benefits at the basic rate, retirement insurance contributionsmust have been made for a minimum number of quarters. (Law No. 2010-1330 of 11/09/2010)This number varies depending on the date of birth :born before 1949 160 quartersborn in 1949 161 quartersborn in 1950 162 quartersborn in 1951 163 quartersborn in 1952 164 quartersborn in 1953 and 1954 165 quartersborn in 1955 166 quarters 32
    • APPENDIX Working outside France• Working outside France in a European Economic Area countryor Switzerland can qualify for unemployment insurancebenefits when the person returns to France and registersas a jobseeker.• For a work in another foreign country, the regulation alsoprovide opportunities to receive unemployment insurancebenefits.The European Economic Area (EEA) and SwitzerlandPeriods of employment in the countries within the EEA countries orSwitzerland can qualify people who have returned to France and registeredas jobseekers for unemployment insurance benefits, provided that theirmost recent employment took place in France where they have workedagain (except for cross-border workers).Countries covered by EC accords include : Austria, Belgium, Denmark,Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein,Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden,Switzerland and the United Kingdom.Since May 1, 2004, this list also includes: Cyprus, the Czech Republic, Estonia,Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia, and asof January 1, 2007 : Bulgaria and Romania. During a transitional perioduntil January 1, 2014, citizens of the latter two countries must have a workpermit in order to benefit from EU accords.Other countriesAppendix 9 to the unemployment insurance guidelines stipulates :• Mandatory unemployment insurance affiliation for expatriated employeesof EEA countries or Switzerland working under a contract signed in France.In case of return to France, unemployment insurance coverage is the sameas for employees working in France ;If no compensation based on the prior salary is possible, ATA temporary aid may bepaid if proof is provided of 182 days of employment (see page 27).• In other cases, there is the possibility of optional affiliation with theexpatriated employee’s unemployment insurance either by the employer,or by the employee himself. To be eligible, individuals must provide proofof at least 18 months of paid employment in the 24 months preceding theend of the contract. 33
    • FACTS & FIGURESNUMBER OF JOBSEEKERS RECEIVING BENEFITSReceiving unemployment benefits in June 2011 2,309,400NUMBER OF AFFILIATED INSTITUTIONSFor unemployment insurance 1,586,185 at the end of 2010BENEFITS PAID AND BUDGET OF THE RAC IN 2009Benefits paid in millions of eurosUnemployment insurance system (ARE, AREF, CRP, ACA) 28,657Unemployment insurance, State (CTP)) 92 ASS, ATA, AER, AFD, APS 2,635State Early retirement (dismissal and progressive) 215 AFDEF, AFF, AFFS 241Unemployment insurance system budget in millions of eurosReceipts = 31,302 including 30,319 contributions 195 various agreements 453 in CRP contributionsExpenses = 34,158 including 25,870 (ARE, AUD, ACA, AREF, CRP) for benefits 1,902 for validation of retirement points 3,071 for management fees 1,072 for benefits 185 for financial obligations - 796 for included refundsINSURANCE ALLOCATIONSDaily amount as of July 1, 2012Minimum benefit € 28.21Fixed part € 11.57EARLY RETIREMENT AND MUTUAL AID BENEFITSDaily amount of mutual aid benefits as of Jan. 1, 2012ATA / temporary aid € 11.01ASS / specific solidarity benefits € 15.63AER / retirement equivalent benefits € 33.74 34
    • SOCIAL PARTNERSHIP SUPPORTING EMPLOYMENTUnemployment insurance account administration Definition of payment rules Decision-making support for social partners Evaluation of return-to-work schemes UNÉDIC FOR THE MOST EFFECTIVE UNEMPLOYMENT INSURANCE
    • Notice DAJ 266 - 09/2012 - Réalisation graphique : V. MargaillanDirection des Affaires Juridiques4 rue Traversière • 75012 Paris www.unedic.org N° 2011/40221