Bill on short-time working and the job retention plan

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Date:
13 Jul 2021

Newsflash

By:
Dorothée David

Bill no. 7858 introducing 1. a temporary exemption to article L. 511-5 of the Labour Code; 2. a change to the Labour Code (hereinafter, the “Bill”), was submitted to the Chamber of Deputies on 9 July 2021.

The Bill includes the following new provisions:

  • Increase in the number of hours eligible for short-time working

Temporarily: the number of working hours per calendar year and per full-time employee that can be used and reimbursed by the Employment Fund for short-time working would be increased from 1,022 hours to 1,714 hours:

  • for businesses eligible for short-time working for structural reasons
  • provided that they are covered by an approved job retention plan accompanying fundamental restructuring.

This measure would apply retroactively from 1 January 2021 until 31 December 2021.

Permanently: the possibility of increasing the number of hours eligible for short-time working to 1,714 hours would be available to companies eligible for short-time working for structural reasons, provided that they are covered by an approved job retention plan accompanying fundamental restructuring and resulting from a tripartite sectoral agreement.

  • Non-eligibility for short-time working of employees who is in notice of dismissal

The clarification that an employee who is in a situation of notice of dismissal is not eligible for short-time working would be added to the eligibility criteria stipulated in article L. 511-10 of the Labour Code.

  • Required content and approval of the job retention plan

Any job retention plan should include a mandatory section designed to “provide an accurate overview of the company’s future development with a view to guaranteeing its sustainability in the short, medium and long term, particularly in relation to investments to be made with a view to the company’s future development”.

In order to be approved, the job retention plan should:

  • contain the mandatory section referred to above, as well as the purpose of the plan and a precise timeline,
  • be supported by a monitoring committee made up of representatives of the signatory parties,
  • provide a detailed, costed training programme, and
  • also include arrangements for individual external support for the employees affected by voluntary redundancy or workforce reduction measures, where appropriate.

In addition, the Bill stipulates that companies that include personal support for career transitions in their job retention plan could, if applicable, use ADEM’s relevant specific programmes.