MIL-OSI Translation: Partial unemployment: what will change in 2021

8

MIL OSI Translation. Government of the Republic of France statements from French to English –

Source: Republic of France in French

Credits: © alex.pin – stock.adobe.com

In order to avoid layoffs resulting from the decline in activity linked to the Covid-19 epidemic, the partial activity system is evolving. As of April 1, 2021 (and no longer March 1), employees will receive compensation of 72% (instead of 84%) of net salary with a floor calculated on the basis of € 8.11 per hour, in the limit of 4.5 times the minimum wage. Employees of companies in sectors most affected by the crisis will also continue to receive compensation equal to 84% of net salary until March 31, 2021. Employees of administratively closed companies will still receive compensation equal to 84% of net salary but until June 30, 2021.

Taken in application of the decree of December 21, 2020 on emergency measures for partial activity, the decrees published in the Official Journal of December 26 and December 31, 2020 specify the terms of this support. Two decrees published in the Official Journal of February 27, 2021 deferred to April 1, 2021 the reduction in the rate of the partial activity allowance paid to the employee.

In the event of a reduction or suspension of business activity, some employees can benefit from partial unemployment .

What changes on January 1, 2021

Since January 1, 2021, the compensation cannot be less than € 8.11 net, i.e. the hourly amount net of the minimum wage in 2021 (instead of € 8.03 previously) nor greater than a ceiling of € 32.29 per nonworking hour.

The rates remain unchanged until March 31 inclusive

The rates currently in force are maintained for all employees until March 31, 2021 inclusive:

If your income is at the minimum wage, you receive the equivalent of 100% of your net salary unless certain deductions (such as mutual insurance, provident insurance, or wage garnishment …) are made.
If your income is above the minimum wage, you receive from your employer 70% of your previous gross remuneration (as used to calculate the paid vacation allowance), or about 84% of your net remuneration. Indeed, the allowance is not subject to social contributions and contributions.

Maintenance of the indemnity in the protected sectors: tourism, culture, sport …

As of April 1, 2021, if you work in a company falling within the so-called “protected” sectors, that is to say sectors most affected by the crisis listed in appendices 1 and 2 of the decree of June 29, 2020 (such as tourism, culture, transport, sport, events), you will continue to receive from your employer 70% of your previous gross remuneration (i.e. approximately 84% of your net remuneration) until April 30 2021.

The allowance paid to the employer will be 60% of the gross hourly remuneration within the limit of a ceiling of 4.5 minimum wage and a floor of € 8.11 until April 30, 2021. The allowance will then increase to 36% from May 2021 with a floor set at € 7.30.

Maintenance of the allowance in establishments that are administratively closed or subject to restrictions

As of April 1, 2021, you will continue to receive from your employer 70% of your previous gross remuneration (or approximately 84% of your net remuneration) until June 30, 2021 if you work in an establishment open to the public that is administratively closed or located in a territory subject to special restrictions and experiencing a decrease in turnover of at least 60%.

Your employer will receive an allowance of 70% of gross hourly compensation and a minimum of € 8.11 until June 30, 2021.

In addition, employers in mountain resorts will be able to benefit from full support for the partial activity for their permanent employees as well as for their seasonal workers until the end of the season, set on April 15, 2021. Shops and Service companies based in ski resorts will be able to benefit from 70% coverage of partial activity during the administrative closure period for ski lifts if they experience a decrease of at least 50% in their turnover. ‘business. Non-working hours by employees of these establishments may be taken into account from December 1, 2020 and until June 30, 2021.

Reduction of compensation for all other sectors from April 1, 2021

In the absence of a long-term partial activity agreement (APLD), employees of companies that are not closed by administrative decision and those not belonging to the sectors most affected by the crisis will receive, from the 1st April 2021, compensation corresponding to 60% of their gross prior compensation (72% of their net compensation) with a minimum of € 8.11. Their employers will have an allowance rate of 36% within the limit of 4.5 times the minimum wage and with a floor set at € 7.30.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

MIL Translation OSI