The news broke on Wednesday April 22 on BFM Business: the number of people affected by short-time working has just passed the 10 million mark (10.2 million to be precise).
Muriel Pénicaud, the French Minister of Labor, refers to a "considerable" figure, as it represents over 50% of French employees. Announced in mid-March, the scheme has met with a huge response, commensurate with the difficulties facing companies. On March 17, over 250,000 employees had already registered. Today, there are forty times that number! More than 820,000 companies, or 60% of the total, are on part-time working.
Among the sectors most affected are retail, hotels, restaurants, construction and specialized services (legal and accounting activities, vehicle rental, call centers, etc.). In addition, the majority of employees concerned work in SMEs with fewer than 50 employees.
As the estimated date for the start of the deconfliction period approaches, on May 11, let's take a look at the current state of short-time working in France!
All companies are eligible for the short-time working scheme, which is fully funded by the French government. To activate it, simply visit the official government platform.
All companies concerned have thirty days in which to apply for this scheme. For companies with more than 50 employees, it is possible to formulate your request without consulting the company's social and economic committee.
Your request must specify the reason for partial activity, the period during which you intend to apply for this aid, the number of employees concerned and the number of hours expected to be lost.
You will receive a reply from the authorities within 2 weeks. Please note that in the absence of a reply, authorization is deemed to have been granted. Any refusal will be explained in detail.
The French government covers the full cost of compensation paid to employees by companies, up to a maximum of 4.5 SMIC, or around €7,000 per month.
The companies concerned by short-time working are those which experience a significant reduction in the company's usual weekly working hours, or which are forced to temporarily close all or part of their establishments.
This measure applies to all employees, regardless of their employment contract (permanent, fixed-term, temporary, etc.). No seniority or working time conditions apply. Thus, an employee who has been on a full-time permanent contract for more than 10 years will be compensated according to the same criteria as a newcomer on a part-time fixed-term contract.
Seasonal workers in ski resorts that have closed are eligible for short-time working until April 15, 2020.
The short-time working scheme is gradually adapting to the prospect of a gradual recovery in economic activity in France.
With the signing of an ordinance presented to the French Council of Ministers on Wednesday April 22, short-time working can now be individualized. Until now, this measure was taken for the entire company.
The aim of this adaptation is to make the return to work more flexible, in order to adjust staffing requirements on a shift-by-shift basis.
The employer can therefore assign these employees a different distribution of hours worked and not worked, only when this measure is essential for the proper resumption of activity. This new measure requires the approval of the social and economic committee.
The new order also allows compensation for hours worked over 35 hours a week under contract or agreement, and for "fixed hours".
Flexibility and agility are the watchwords when it comes to supporting companies as they approach decontamination.
Written by our expert Paul LASBARRERES-CANDAU
April 27, 2020
