French Government approves controversial "unemployment reform" bill

Photo: FT.com

The regulation went into effect on Wednesday, two months after the French government adopted a plan to restructure unemployment insurance, tightening the requirements for the most insecure workers.

One of the most often criticized policies by trade unions is the one that changes the eligibility for benefits based on the amount of time worked in the previous 24 months, from four to six months (36 for those over 53 years of age).

Furthermore, the amount of this subsidy will be computed based on the length of time worked, thus temporary or part-time employees would earn less than those who contribute more time or have higher incomes.

According to research conducted by the employment agency, this shift will leave 475,000 people without social coverage in the first year of implementation, primarily "young or seasonal employees who have many short contracts," frequently with the same company.

Labor Minister Elisabeth Borne, on the other hand, believes that "the use of short contracts is mostly independent of the economic environment" and is caused by "the habits of people engaged," which may be changed by adjusting the unemployment insurance conditions.

The unions, in turn, took the law to the Council of State, France's highest administrative court, which will provide an opinion on the plaintiffs' calculations and loss of rights in a few days.

Publish : 2021-12-02 14:56:00

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