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DAJ 266 - SEPTEMBER 2012




COMPENSATION
AND ACCOMPANYING
OF JOBSEEKERS
IN FRANCE
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Contents
  PA RT 1

The public service for employment
and the compensation system of jobseekers        page 4



  PA RT 2

Benefits offered to jobseekers
to facilitate the return to work       page 12



  PA RT 3

Social welfare     page 31



 APPENDIX

Working outside France
and job loss protection      page 33



 FACTS & FIGURES      page 34
Public Services for Employment

The “Service Public de l’Emploi” helps jobseekers access
and return to work, and to secure career development
for all workers

In France, organizations grouped under the Service Public de l’Emploi, provide
benefit and support for jobseekers. The SPE fulfils his missions through the
reception, the support, the training and the integration of jobseekers. His
missions 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 with
the state, as well as temporary employment and placement agencies may
also 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 policy
at the regional level. The IPR ensures that unemployment compensation agreements
are 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 (French
law 2008-126 of February 13, 2008 reforming the country’s public services for employment.)




                                            4
PA RT 1


THE SERVICE PUBLIC DE L’EMPLOI (SPE) PARTICIPATING ORGANIZATIONS
Divisions of the Ministry for Employment
Their mission is to implement the policies set by authorities in terms of labor, employment and
professional training. These divisions also take disciplinary actions against jobseekers if they fail
to meet obligations (at the national level: the General Delegation for employment and professional
training ; at the local level: regional agencies for business, competition, consumption, labor, and
employment “Direccte”).

Pôle emploi
A public agency resulting from the merger (December 19, 2008) between the ANPE (the national
agency 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 salaried
employees,
• Supervision of the job search process,
• Public assistance to employers and jobseekers in order to facilitate their return to work.

L’Unédic
The UNEDIC is a jointly-managed non-profit organization responsible for unemployment insurance,
as well as determining and guaranteeing the conditions for issuing unemployment insurance (and
related benefits) in accordance with decisions made by social partners. The UNEDIC also ensures
financial management of the unemployment insurance system and finances Pôle Emploi and pro-
vides studies, analyses, publications, and information for decision-making required by social partners
and 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 continuing
education. The AFPA deals with the full range of issues related to training and human resources
support. It serves both jobseekers and employee, and provides training tailored to the needs of
the labor market.

Maisons de l’Emploi (local job centers)
Founded as non-profit organizations or public interest groups, these structures include required
members (the municipality that hosts the project, state government, Pôle Emploi), members invited
upon request (regional and departmental representatives) and associated partners (AFPA, consular
organizations, 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 schemes

Since April 1984, the French system for involuntary loss
of employment protection consists of two schemes :
• The unemployment insurance scheme
• The solidarity scheme


The unemployment insurance system provides replacement revenue for
those who have involuntarily lost their jobs, and who have contributed to
the national unemployment insurance scheme while working.

The solidarity scheme provides payments to : unemployed persons whose
entitlement under the unemployment insurance scheme has come to an
end, certain categories of unemployed persons who are not entitled to
unemployment benefits, and to some older jobseekers.


The UNÉDIC contributes to Pôle Emploi’s investments and activities up to 10 % of
the amount of the unemployment insurance contributions collected and paid by
employers. 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 scheme
Since its inception, the unemployment insurance scheme
has 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) signed
an agreement to establish a social protection scheme for those who have
involuntarily lost their job.
Since then, the regulations have been updated by a process of continuous
collective bargaining and agreements reached by social partners. The pro-
visions for these agreements are subject to a specific legislative framework
which defines social partners’ scope of involvement and determines the
implementation terms of the agreement . Once approved by the government,
the conditions within the scheme become binding upon employers and
employees alike. The agreements are negotiated and fixed for set periods
depending on the financial resources of the scheme, and on anticipated
changes in unemployment and job market fluctuations.
The means of collecting contributions and allocating benefits are also
appended to the agreement in force. The agreement and regulations also
include measures to facilitate job seekers’ return to work.

In the context of unemployment insurance, the concept of parity is based on equal
representation of employers’ associations and trade unions in the drafting and
interpretation 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 which
is 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 and
protocols.
• They jointly manage the UNÉDIC and are represented on Pôle Emploi’s Board of
Directors.
• At the regional level, they ensure the effective implementation of the unemploy-
ment insurance agreement (see page 4) within each Pôle Emploi department and
constitute the regional joint authorities (IPR).
UNEDIC delegates the payment of benefits to Pôle Emploi.


                                         8
PA RT 1




The unemployment insurance scheme is designed
for employees who have held a work contract
in most of professional sectors.

Initially applied only in mainland France, the scheme was extended to
overseas 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 a
work contract.
Unemployed public sector workers are directly compensated by their
employers “auto insured”, according to the same rules as employees who
are covered by the unemployment insurance scheme. However, some
public sector employers have the possibility to join the unemployment
insurance scheme.
Depending upon the employer’s status, this adhesion may be revocable
or irrevocable.



A time-line of the scheme’s extension to different professional sectors
1959       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 sector
1979 - 1980      Extension to domestic employees and child minders
1987       Opening, through revocable voluntary membership only,
to local administrations, administrative public utilities, other than those
of the state, for non statutory personnel
1999      Opening, through revocable voluntary membership only, to universities,
”grandes écoles” and public utilities of a scientific and technological character




                                           9
The solidarity scheme

The solidarity scheme is the result of legislative provisions,
implemented through decrees.

The solidarity scheme is an assistance system which is fully financed by the
state budget. It was set up to take over from the unemployment insurance
scheme in cases where the latter does not apply or when it’s involvement
has ceased. It is a subsidiary to the unemployment insurance scheme.

The rules for awarding allowances of the solidarity scheme are written by
the public authorities, but benefits payment is managed by Pôle Emploi.




                                     10
PA RT 1




Schemes funding:
• Unemployment insurance scheme: by contributions from
employers and employees,
• Solidarity scheme: by the state budget.

• Unemployment insurance is funded by obligatory contributions deducted
directly from wages*. Their rates are set by the social partners depending
on 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 maximum
Social 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 collection
agencies for social contributions).



The implementation of both schemes measures is assured by
Pôle 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, on
behalf of the UNEDIC, the allocation of unemployment insurance benefits.
The management of solidarity benefits has been entrusted to the same
institution : Pôle Emploi. Therefore, each unemployed person only deals
with one agency : Pôle Emploi.




                                             11
Benefits available to jobseekers

Objective: facilitate the return to work


Assistance and replacement income
In addition to measures facilitating the reconversion, jobseekers can, under
certain conditions, benefit from allowances to replace their salary.
To have unemployment benefits, jobseekers must prove that they are taking
ongoing initiatives to find a job, and agree to counseling, support or training
offered by Pôle Emploi, and any reasonable job offer presented as part of
a personalized job access project (Projet personnalisé d’accès à l’emploi
ou PPAE).


PPAE
Once a jobseeker has registered, and after an in depth interview between
the jobseeker and Pôle Emploi, a PPAE is developed.
It determines:
• The types of job that correspond to the jobseeker’s qualifications and
skills, to standard wage of the profession and to the geographic area of
the 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 given
to training programs provided as part of a work contract.
Throughout the unemployment period, Pôle Emploi monitors and updates
the progress of the PPAE. Additional assistance may be provided to facilitate
the return to work.




                                      12
PA RT 2




BENEFITS FOLLOWING LAYOFFS DUE TO ECONOMIC REASON
As of September 1, 2011, companies with less than 1,000 employees, or in recovery
proceedings or judicial liquidation regardless of their number of employees, must
offer 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 personalized
support, 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 one
year 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 work
To facilitate the return to work for unemployed workers who
receive benefits, unemployment insurance agreement provides
certain qualifying conditions for additional benefits including :
• Differential reconversion compensation for certain who
accept 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 employment
earnings with unemployment insurance benefits (see page 25).
Additional measures are determined by the Board
of Directors of Pôle Emploi, whose budget includes special
provisions for the financing of such initiatives.
Part of UNÉDIC’s contribution to the funding of Pôle Emploi
is especially reserved for investment and operations
in this area (see page 7).



Pôle Emploi assistances
Except for services targeted to specific types of jobseekers, the assistance
provided by Pôle Emploi is intended for all jobseekers, regardless of whether
or 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 moving
costs when a new job is far away from the person’s home),
- financing assistance for obtaining a driver's 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 qualify
for 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 depending
on 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 emploi
For 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 withdrawn
by Finance law No. 2011-1977 of Dec. 28, 2011 (Art. 152). FNE agreements signed before
October 2011 will remain in effect for the remainder of their term.




                                          16
PA RT 2



      Unemployment insurance
      compensation
       Conditions

7 qualifying conditions


1 To have already worked for at least 4 months
You must have worked for at least four months in the last 28 months (over
the previous 36 months for those 50 years old and over).
If this condition is not met, professional training can be considered may
count 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 permanent
job contract. In addition, if you have resigned from a position and have
not found new employment within 4 months after this resignation, you can
request your situation to be reviewed by the regional joint commission
(see page 4). The regional joint commission may allow benefits based on
reconversion efforts made by the individual. Benefits may start from 5 th
month after the resignation.

3 To be physically capable of working
In case of illness, the unemployment benefit is not paid. The person may
receive a daily allowance from the social security.

4 To be registered as a jobseeker or to be in training
Registration as a job seeker is made at Pôle Emploi. Every month, job seekers
must update their situation.




                                     17
Unemployment insurance
        compensation
        Conditions continuation

5 Ongoing and effective job search efforts
This obligation is formalised in the PPAE. As of 2012, all jobseekers are
subject to this obligation (with the exception of those who were granted
exemptions 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 for
prescribed 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 entitlement
for full retirement allowances (65 to 67 years).
* As of July 1, 2011, pension reform Law No. 2010-1330 of November 9, 2010 and decree
No. 2011-2034 the legal age of eligibility for retirement benefits has been revised and full
pension 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 2


LEGITIMATE RESIGNATION CASES
order to follow his parents or legal guardian
• Resignation of an employee who interrupts his work contract to follow a spouse
who is moving for professional reasons.
• Resignation of an employee who interrupts his work contract in the event of
marriage or PACS involving a change of residence,if the period between resigning
and 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 take
a fixed-term position (CDD) of at least 6 months, a permanent position (CDI), or to
follow 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 of
non-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-term
employment contract, accepts a employment contract that he voluntarily interrupts
during 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 the
employer terminates during or after the trial period within a limit of 91 days.
• The termination of an “indivisible” employment contract specifically for a married
couple when it includes an automatic termination clause if the employee leaves the
position due to the dismissal or retirement of his or her spouse.
• Resignation of an employee who wishes to apply the safeguard clause provided
for journalists under the condition that compensation benefits were in fact paid.
• Resignation of an employee who interrupts his work contract to take a civilian
service 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 business
whose 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 benefits
The amount of benefits payable to a person is related
to his previous earnings.

The benefit amount
The amount of benefits is calculated, using information provided by the
employer, on the basis of previous earnings subject to unemployment
insurance contributions.
Compensation for loss of employment such as redundancy payment or
Compensation 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’s
total hours worked (such as part-time) and on their particular situation.
                                                 Participation
Monthlygross*         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 number
of 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 2




REDUCED BENEFITS
Part-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) can
combine this amount with their return to work benefits under certain conditions
stipulated by the Social Security Code if the pension has been combined with previous
earnings.
• People between 50 and 55 years old who receive an old age pension are subject to
a 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 GENERALPROVISIONS
To take into account the particularities of certain professions, a series of specific
provisions are annexed to the “réglement general”. They concern the following
categories of employees:
Appendix 1 : Sales representatives, journalists, civil aviation personnel, childcare
workers and home care providers, lumberjacks and pieceworkers, agents working
on commission
Appendix 2 : Maritime trade workers, fishermen
Appendix 3 : Dock workers
Appendix 4 : Contract and temporary workers, temp agency employees
Appendix 5 : Those who work at home
Appendix 6 : Employees of a company with no operations site in France
Appendix 7 : Disabled employees with special, protected workshop jobs
Appendix 8 : Workers and technicians for: recording studios and sound editing, film
and television production, radio, broadcast media and entertainment
Appendix 9 : Employees working outside of France or for international organizations,
embassies or consulates
Appendix 10 : Performance artists and theatre workers
Appendix 11 : Those who have worked under a fixed-term contract (CDD) and who
have obtained financial assistance for expenses associated with an individual training
program
Appendix 12 : Rates used to calculate allocations for certain professions




                                          21
Unemployment insurance benefit
       Duration of benefits

Unemployment insurance benefits is paid monthly up
to a maximum number of months determined by age
and duration of time worked.


Unemployment benefits are paid on a monthly basis on condition that the
jobseeker updates his status.
To be eligible for benefits, jobseekers must have already work for at least
4 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 of
benefits depends on the duration the jobseeker has been affiliated :
1 day of affiliation = 1 day of benefit
At the end of a job contract, the maximum limit of insurance benefits is
24 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 without
application of the maximum duration to those aged 61 and over who are not
eligible for retirement benefits. Benefits are never paid immediately, except
in the case of resumption of payments already approved (see opposite).


Benefits until retirement
Those who have received benefits for 365 days minimum and who are aged 61 or
over can be compensated beyond the statutory periods if they have not worked
the minimum number quarters required to qualify for retirement benefits until
the number of quarters needed is reached. Full retirement eligibility is granted
between 65 and 67 on condition that proof is provided of having made retirement
contributions for 100 quarters (25 years), including 12 years as a salaried employee.




                                         22
PA RT 2




THE STARTING POINT FOR PAYMENT OF BENEFITS
In all cases, that “7 days non-entitlement” period applies from the date of registry
as a job seeker*.
In addition, if the person concerned has received:
• Compensation for outstanding days of pay holiday, a delay period corresponding
to the number of days covered by this compensation is calculated;
• one or more severance indemnities, of which the amount is above the legal
compensation (meaning the minimum compensation amounts set by French law),
Pôle Emploi calculates a “specific” delay period taking account of the supralegal
indemnity.
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 days
Total...........................................................................................................................................................................53 days
The jobseeker will receive benefits from 31st of May - 7 days after the end of the
53 days period if his registration is in before the 24th of May .




                                                                                          23
Unemployment insurance benefits
       Interruption of benefit payments

Benefits payments interruption cases are specified by law.
A return to work does not automatically suspend benefits
payment.

The payment of insurance benefits will be stopped on the day that the
claimant :
• Is no longer registered as a jobseeker, unless he is granted an exemption
from job searching ;
• Is in receipt of, or is entitled to receive benefits from the Social Security
for sickness, accident at work, or work related illness ;
• Is disqualified from receiving unemployment benefits by administrative
decision or following his exclusion by Pôle Emploi, in particular due to
refusal 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 to
receive 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 child
under three years old ;
• Is no longer living in France or in its territories ;
• Has provided inaccurate information or made false statements in order
to 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 accepts
a lower-paying position (see opposite).




                                        24
PA RT 2




POSSIBLE BENEFIT ENTITLEMENT WHILE ENGAGED
IN REDUCED EMPLOYMENT
Partial accumulation of unemployment benefits and wages
There 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, a
number of non entitlement days will be determined on the basis of the gross
earnings of the new employment :
                                         gross earnings of the new job
Days of non entitlement to benefit =
                                         daily earnings reference level
For employees aged 50 years or older, the number of days of non entitlement to
benefit is reduced by 20 %.
Daily benefits are paid for the number of days corresponding to the number of
calendar days of the month from which days of non entitlement benefit are
deducted.
Aide différentielle de reclassement
The “aide différentielle de reclassement” may be paid to the beneficiary if he accepts
a job whose pay, for a same number of hours worked, is at least 15 % less that of
his or her previous position. Beneficiaries under age 50 must be registered with Pôle
emploi for at least 12 months. Those aged 50 years and over can benefit regardless
of the duration registration.
These two situations cannot be combined.
Assistance for those buying or starting a new business
This corresponds to the remainder of 45 % of the compensation due, and is paid in
two times as a capital.
This capital is paid only if the person does not request to continue to
receive partial payment of benefits.

EMPLOYEES WITH SEVERAL JOBS HAVING LOST ONE OF THEM
When a beneficiary keeps a reduced employment or an occasional work at the same
job held before the loss of his full-time position, the payment of unemployment
insurance allows him to be fully compensated for 15 months maximum (limit not
applicable to persons aged 50 and over) along with the income earned from the
retained activity, provided that it corresponds to less than 110 hours worked each
month, and totals less than 70 % of the previous income from the lost job combined
with the part-time or occasional work.


                                          25
Solidarity benefits

Solidarity benefits is a fixed amount allocated
according to the jobseeker’s resources.


L’allocation de solidarité spécifique (ASS)
ASS is for people who have exhausted their rights to unemployment insurance
benefits, or to for people aged 50 years or older who have the possibility
to choose between unemployment insurance benefits and solidarity benefits.
This form of aid may also be paid, under certain conditions, to certain
categories 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 not
entitled to unemployment insurance benefits, either because they have not
worked 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, 1953
who can provide proof of having worked enough quarters to qualify for
full retirement benefits, but who have not yet reached the legal retirement
age (see page 18). ATS may be paid to those who have exhausted their
rights to unemployment insurance, or to complete unemployment benefits
in order to ensure a minimum level of income.

Various measures encourage those who receive solidarity benefits to return to
work : combining benefits with earned income, and monthly bonuses (see opposite).




                                       26
PA RT 2




RETURNING TO WORK IN THE SOLIDARITY SCHEME
The solidarity benefit scheme provides incentives to return to work. These incentives
depend 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 activity
ASS beneficiaries who work 78 hours or more per month, and those who have a non
salaried activity may be eligible to receive supplemental of income for up to 12 months
under 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 from
paid work, plus a monthly bonus of € 150).
Return to work with less than 78 hours per month
ASS beneficiaries who work less than 78 hours per month, and those who receive
ATA (regardless of the number of hours worked) can also receive additional income
for 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 gross
income 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 the
amount exceeding half the minimum wage.
• During the next 6 months, the amount of the compensation is reduced by 40 % of
all of the income earned from the new job.




                                          27
L’allocation de solidarité spécifique
ASS is paid for a renewable period of 6 months, as long as
financial resources and active job search conditions are met.
It concerns the long term unemployed who have exhausted
their rights to unemployment insurance benefits.
The unemployed aged 50 years or more can choose between
receiving unemployment insurance benefits
or solidarity benefits.


Qualifying conditions
• Total income is limited to : € 1094,10 for a single person, and € 1719,30
for a couple (as of January 1, 2012).
• To prove five years of employment within 10 years before the contract of
employment ended. Work includes periods of training or national service,
(for those who stopped working for at least one year to care for a child or
children, this period can be reduced under certain conditions).

Amount
The 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 benefit

For 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’attente
ATA is paid for a varying length of time according
to the beneficiary’s situation and concerns :
• Expatriated employees back to France who have not
contributed to unemployment insurance and who can prove
182 days worked in a foreign country,
• Ex-offenders released after two months or more
of imprisonment
• Those seeking asylum 18 years of age and older, who have
requested political asylum from the Office Français
pour la Protection des Réfugiés et Apatrides (OFPRA)
• Those receiving temporary protection and holders
of a temporary residence permit,
• Those receiving subsidiary protection and holders
of a temporary residence permit,
• Foreign victims of human being trade who hold a temporary
residence permit and a certificate of protection
by the French State.


Qualifying conditions
Those 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 € 189.97


Allowance amount
The 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 and
Dec. 31, 1953 who can provide proof of having worked enough
quarters to qualify for full retirement benefits, but who have
not yet reached the legal retirement age (see page 18). Those
in this category must also meet certain revenue requirements.
ATS may be paid to those who have exhausted their rights to
unemployment insurance (replacement ATS), or to complement
unemployment benefits when the beneficiary’s income is less
than 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)


Amount
As of January 1, 2012, the maximum daily ATS allowance is € 33.74. The
monthly amount corresponds to the number of days in the month x the
daily benefit amount. ATS benefit are paid until the person reaches the
legal age of retirement. The ATS amount is revised every year by decree.


                                                30
PA RT 3



       Social Protection

Coverage of risks of illness, maternity and death.


Health insurance
(covering illness, maternity and death)
A person with social protection prior to unemployment will continue to
benefit from health insurance (refund or daily benefits) as long as he/she
entitled to unemployment benefits.
Social protection may then be extended for 1 year.


Concerning the universal health coverage scheme, any person residing in France in a
stable and regular manner who is not entitled to any other type of health insurance
covering illness and maternity may at least benefit from a reimbursement of
his/her medical, pharmaceutical or hospital expenses in accordance with the social
security rates in force.




                                        31
PA RT 3
        Social Protection
Periods of entitlement to unemployed benefit counted
for pension contribution purposes.


Basic system
For 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 at
all, periods of unemployment may, under certain conditions, be credited
up to a limit of 1 year, or 5 years for those aged 55 years and over, and
who have contributed for 20 years.

Additional retirement benefits
To supplement the basic system, additional retirement “points” are granted
to jobseekers who receive benefits and who have contributed to additional
retirement savings plans. Depending on the type of plan, it may be funded
by the Unédic, the state, the jobseeker him or herself, or the retirement
plan itself.

To receive full retirement benefits at the basic rate, retirement insurance contributions
must 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 quarters
born in 1949                             161 quarters
born in 1950                             162 quarters
born in 1951                             163 quarters
born in 1952                             164 quarters
born in 1953 and 1954                    165 quarters
born in 1955                             166 quarters




                                           32
APPENDIX
       Working outside France
• Working outside France in a European Economic Area country
or Switzerland can qualify for unemployment insurance
benefits when the person returns to France and registers
as a jobseeker.
• For a work in another foreign country, the regulation also
provide opportunities to receive unemployment insurance
benefits.

The European Economic Area (EEA) and Switzerland
Periods of employment in the countries within the EEA countries or
Switzerland can qualify people who have returned to France and registered
as jobseekers for unemployment insurance benefits, provided that their
most recent employment took place in France where they have worked
again (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 as
of January 1, 2007 : Bulgaria and Romania. During a transitional period
until January 1, 2014, citizens of the latter two countries must have a work
permit in order to benefit from EU accords.

Other countries
Appendix 9 to the unemployment insurance guidelines stipulates :
• Mandatory unemployment insurance affiliation for expatriated employees
of EEA countries or Switzerland working under a contract signed in France.
In case of return to France, unemployment insurance coverage is the same
as for employees working in France ;
If no compensation based on the prior salary is possible, ATA temporary aid may be
paid if proof is provided of 182 days of employment (see page 27).

• In other cases, there is the possibility of optional affiliation with the
expatriated employee’s unemployment insurance either by the employer,
or by the employee himself. To be eligible, individuals must provide proof
of at least 18 months of paid employment in the 24 months preceding the
end of the contract.
                                        33
FACTS & FIGURES




NUMBER OF JOBSEEKERS RECEIVING BENEFITS
Receiving unemployment benefits in June 2011          2,309,400

NUMBER OF AFFILIATED INSTITUTIONS
For unemployment insurance           1,586,185 at the end of 2010

BENEFITS PAID AND BUDGET OF THE RAC IN 2009
Benefits paid in millions of euros
Unemployment insurance system (ARE, AREF, CRP, ACA)                 28,657
Unemployment insurance, State (CTP))                                92
      ASS, ATA, AER, AFD, APS                                       2,635
State Early retirement (dismissal and progressive)                  215
      AFDEF, AFF, AFFS                                              241
Unemployment insurance system budget in millions of euros
Receipts = 31,302 including        30,319 contributions
                                   195 various agreements
                                   453 in CRP contributions
Expenses = 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 refunds

INSURANCE ALLOCATIONS
Daily amount as of July 1, 2012
Minimum benefit          € 28.21
Fixed part               € 11.57

EARLY RETIREMENT AND MUTUAL AID BENEFITS
Daily amount of mutual aid benefits as of Jan. 1, 2012
ATA / temporary aid                               € 11.01
ASS / specific solidarity benefits                € 15.63
AER / retirement equivalent benefits              € 33.74




                                            34
SOCIAL PARTNERSHIP SUPPORTING EMPLOYMENT



Unemployment 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. Margaillan




Direction des Affaires Juridiques
4 rue Traversière • 75012 Paris
       www.unedic.org               N° 2011/40221

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Compensation and accompanying of Jobseekers In france

  • 1. DAJ 266 - SEPTEMBER 2012 COMPENSATION AND ACCOMPANYING OF JOBSEEKERS IN FRANCE
  • 2. n tio ma g an n for .or Germ le i dic h, ilab w.une renc Ava ww h, F on nglis nish in E d Spa an
  • 3. Contents PA RT 1 The public service for employment and the compensation system of jobseekers page 4 PA RT 2 Benefits offered to jobseekers to facilitate the return to work page 12 PA RT 3 Social welfare page 31 APPENDIX Working outside France and job loss protection page 33 FACTS & FIGURES page 34
  • 4. Public Services for Employment The “Service Public de l’Emploi” helps jobseekers access and return to work, and to secure career development for all workers In France, organizations grouped under the Service Public de l’Emploi, provide benefit and support for jobseekers. The SPE fulfils his missions through the reception, the support, the training and the integration of jobseekers. His missions 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 with the state, as well as temporary employment and placement agencies may also 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 policy at the regional level. The IPR ensures that unemployment compensation agreements are 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 (French law 2008-126 of February 13, 2008 reforming the country’s public services for employment.) 4
  • 5. PA RT 1 THE SERVICE PUBLIC DE L’EMPLOI (SPE) PARTICIPATING ORGANIZATIONS Divisions of the Ministry for Employment Their mission is to implement the policies set by authorities in terms of labor, employment and professional training. These divisions also take disciplinary actions against jobseekers if they fail to meet obligations (at the national level: the General Delegation for employment and professional training ; at the local level: regional agencies for business, competition, consumption, labor, and employment “Direccte”). Pôle emploi A public agency resulting from the merger (December 19, 2008) between the ANPE (the national agency 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 salaried employees, • Supervision of the job search process, • Public assistance to employers and jobseekers in order to facilitate their return to work. L’Unédic The UNEDIC is a jointly-managed non-profit organization responsible for unemployment insurance, as well as determining and guaranteeing the conditions for issuing unemployment insurance (and related benefits) in accordance with decisions made by social partners. The UNEDIC also ensures financial management of the unemployment insurance system and finances Pôle Emploi and pro- vides studies, analyses, publications, and information for decision-making required by social partners and 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 continuing education. The AFPA deals with the full range of issues related to training and human resources support. It serves both jobseekers and employee, and provides training tailored to the needs of the labor market. Maisons de l’Emploi (local job centers) Founded as non-profit organizations or public interest groups, these structures include required members (the municipality that hosts the project, state government, Pôle Emploi), members invited upon request (regional and departmental representatives) and associated partners (AFPA, consular organizations, 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
  • 6. A sole protection system made up of two schemes Since April 1984, the French system for involuntary loss of employment protection consists of two schemes : • The unemployment insurance scheme • The solidarity scheme The unemployment insurance system provides replacement revenue for those who have involuntarily lost their jobs, and who have contributed to the national unemployment insurance scheme while working. The solidarity scheme provides payments to : unemployed persons whose entitlement under the unemployment insurance scheme has come to an end, certain categories of unemployed persons who are not entitled to unemployment benefits, and to some older jobseekers. The UNÉDIC contributes to Pôle Emploi’s investments and activities up to 10 % of the amount of the unemployment insurance contributions collected and paid by employers. Pôle Emploi also receives public funding. 6
  • 7. 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
  • 8. The unemployment insurance scheme Since its inception, the unemployment insurance scheme has 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) signed an agreement to establish a social protection scheme for those who have involuntarily lost their job. Since then, the regulations have been updated by a process of continuous collective bargaining and agreements reached by social partners. The pro- visions for these agreements are subject to a specific legislative framework which defines social partners’ scope of involvement and determines the implementation terms of the agreement . Once approved by the government, the conditions within the scheme become binding upon employers and employees alike. The agreements are negotiated and fixed for set periods depending on the financial resources of the scheme, and on anticipated changes in unemployment and job market fluctuations. The means of collecting contributions and allocating benefits are also appended to the agreement in force. The agreement and regulations also include measures to facilitate job seekers’ return to work. In the context of unemployment insurance, the concept of parity is based on equal representation of employers’ associations and trade unions in the drafting and interpretation 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 which is 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 and protocols. • They jointly manage the UNÉDIC and are represented on Pôle Emploi’s Board of Directors. • At the regional level, they ensure the effective implementation of the unemploy- ment insurance agreement (see page 4) within each Pôle Emploi department and constitute the regional joint authorities (IPR). UNEDIC delegates the payment of benefits to Pôle Emploi. 8
  • 9. PA RT 1 The unemployment insurance scheme is designed for employees who have held a work contract in most of professional sectors. Initially applied only in mainland France, the scheme was extended to overseas 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 a work contract. Unemployed public sector workers are directly compensated by their employers “auto insured”, according to the same rules as employees who are covered by the unemployment insurance scheme. However, some public sector employers have the possibility to join the unemployment insurance scheme. Depending upon the employer’s status, this adhesion may be revocable or irrevocable. A time-line of the scheme’s extension to different professional sectors 1959 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 sector 1979 - 1980 Extension to domestic employees and child minders 1987 Opening, through revocable voluntary membership only, to local administrations, administrative public utilities, other than those of the state, for non statutory personnel 1999 Opening, through revocable voluntary membership only, to universities, ”grandes écoles” and public utilities of a scientific and technological character 9
  • 10. The solidarity scheme The solidarity scheme is the result of legislative provisions, implemented through decrees. The solidarity scheme is an assistance system which is fully financed by the state budget. It was set up to take over from the unemployment insurance scheme in cases where the latter does not apply or when it’s involvement has ceased. It is a subsidiary to the unemployment insurance scheme. The rules for awarding allowances of the solidarity scheme are written by the public authorities, but benefits payment is managed by Pôle Emploi. 10
  • 11. PA RT 1 Schemes funding: • Unemployment insurance scheme: by contributions from employers and employees, • Solidarity scheme: by the state budget. • Unemployment insurance is funded by obligatory contributions deducted directly from wages*. Their rates are set by the social partners depending on 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 maximum Social 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 collection agencies for social contributions). The implementation of both schemes measures is assured by Pôle 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, on behalf of the UNEDIC, the allocation of unemployment insurance benefits. The management of solidarity benefits has been entrusted to the same institution : Pôle Emploi. Therefore, each unemployed person only deals with one agency : Pôle Emploi. 11
  • 12. Benefits available to jobseekers Objective: facilitate the return to work Assistance and replacement income In addition to measures facilitating the reconversion, jobseekers can, under certain conditions, benefit from allowances to replace their salary. To have unemployment benefits, jobseekers must prove that they are taking ongoing initiatives to find a job, and agree to counseling, support or training offered by Pôle Emploi, and any reasonable job offer presented as part of a personalized job access project (Projet personnalisé d’accès à l’emploi ou PPAE). PPAE Once a jobseeker has registered, and after an in depth interview between the jobseeker and Pôle Emploi, a PPAE is developed. It determines: • The types of job that correspond to the jobseeker’s qualifications and skills, to standard wage of the profession and to the geographic area of the 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 given to training programs provided as part of a work contract. Throughout the unemployment period, Pôle Emploi monitors and updates the progress of the PPAE. Additional assistance may be provided to facilitate the return to work. 12
  • 13. PA RT 2 BENEFITS FOLLOWING LAYOFFS DUE TO ECONOMIC REASON As of September 1, 2011, companies with less than 1,000 employees, or in recovery proceedings or judicial liquidation regardless of their number of employees, must offer 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 personalized support, 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 one year seniority in the company (by default, the compensation is equivalent to return- to-work benefits). CSP contracts are for 12 months. 13
  • 14. Measures to facilitate return to work To facilitate the return to work for unemployed workers who receive benefits, unemployment insurance agreement provides certain qualifying conditions for additional benefits including : • Differential reconversion compensation for certain who accept 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 employment earnings with unemployment insurance benefits (see page 25). Additional measures are determined by the Board of Directors of Pôle Emploi, whose budget includes special provisions for the financing of such initiatives. Part of UNÉDIC’s contribution to the funding of Pôle Emploi is especially reserved for investment and operations in this area (see page 7). Pôle Emploi assistances Except for services targeted to specific types of jobseekers, the assistance provided by Pôle Emploi is intended for all jobseekers, regardless of whether or 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
  • 15. PA RT 2 • Assistance to remove barriers to finding a job : - support for returning to work (travel expenses, dual residence, or moving costs when a new job is far away from the person’s home), - financing assistance for obtaining a driver's 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 qualify for unemployment compensation. 15
  • 16. 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 depending on 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 emploi For 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 withdrawn by Finance law No. 2011-1977 of Dec. 28, 2011 (Art. 152). FNE agreements signed before October 2011 will remain in effect for the remainder of their term. 16
  • 17. PA RT 2 Unemployment insurance compensation Conditions 7 qualifying conditions 1 To have already worked for at least 4 months You must have worked for at least four months in the last 28 months (over the previous 36 months for those 50 years old and over). If this condition is not met, professional training can be considered may count 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 permanent job contract. In addition, if you have resigned from a position and have not found new employment within 4 months after this resignation, you can request your situation to be reviewed by the regional joint commission (see page 4). The regional joint commission may allow benefits based on reconversion efforts made by the individual. Benefits may start from 5 th month after the resignation. 3 To be physically capable of working In case of illness, the unemployment benefit is not paid. The person may receive a daily allowance from the social security. 4 To be registered as a jobseeker or to be in training Registration as a job seeker is made at Pôle Emploi. Every month, job seekers must update their situation. 17
  • 18. Unemployment insurance compensation Conditions continuation 5 Ongoing and effective job search efforts This obligation is formalised in the PPAE. As of 2012, all jobseekers are subject to this obligation (with the exception of those who were granted exemptions 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 for prescribed 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 entitlement for full retirement allowances (65 to 67 years). * As of July 1, 2011, pension reform Law No. 2010-1330 of November 9, 2010 and decree No. 2011-2034 the legal age of eligibility for retirement benefits has been revised and full pension 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
  • 19. PA RT 2 LEGITIMATE RESIGNATION CASES order to follow his parents or legal guardian • Resignation of an employee who interrupts his work contract to follow a spouse who is moving for professional reasons. • Resignation of an employee who interrupts his work contract in the event of marriage or PACS involving a change of residence,if the period between resigning and 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 take a fixed-term position (CDD) of at least 6 months, a permanent position (CDI), or to follow 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 of non-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-term employment contract, accepts a employment contract that he voluntarily interrupts during 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 the employer terminates during or after the trial period within a limit of 91 days. • The termination of an “indivisible” employment contract specifically for a married couple when it includes an automatic termination clause if the employee leaves the position due to the dismissal or retirement of his or her spouse. • Resignation of an employee who wishes to apply the safeguard clause provided for journalists under the condition that compensation benefits were in fact paid. • Resignation of an employee who interrupts his work contract to take a civilian service 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 business whose 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
  • 20. Unemployment insurance benefits The amount of benefits payable to a person is related to his previous earnings. The benefit amount The amount of benefits is calculated, using information provided by the employer, on the basis of previous earnings subject to unemployment insurance contributions. Compensation for loss of employment such as redundancy payment or Compensation 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’s total hours worked (such as part-time) and on their particular situation. Participation Monthlygross* 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 number of 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
  • 21. PA RT 2 REDUCED BENEFITS Part-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) can combine this amount with their return to work benefits under certain conditions stipulated by the Social Security Code if the pension has been combined with previous earnings. • People between 50 and 55 years old who receive an old age pension are subject to a 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 GENERALPROVISIONS To take into account the particularities of certain professions, a series of specific provisions are annexed to the “réglement general”. They concern the following categories of employees: Appendix 1 : Sales representatives, journalists, civil aviation personnel, childcare workers and home care providers, lumberjacks and pieceworkers, agents working on commission Appendix 2 : Maritime trade workers, fishermen Appendix 3 : Dock workers Appendix 4 : Contract and temporary workers, temp agency employees Appendix 5 : Those who work at home Appendix 6 : Employees of a company with no operations site in France Appendix 7 : Disabled employees with special, protected workshop jobs Appendix 8 : Workers and technicians for: recording studios and sound editing, film and television production, radio, broadcast media and entertainment Appendix 9 : Employees working outside of France or for international organizations, embassies or consulates Appendix 10 : Performance artists and theatre workers Appendix 11 : Those who have worked under a fixed-term contract (CDD) and who have obtained financial assistance for expenses associated with an individual training program Appendix 12 : Rates used to calculate allocations for certain professions 21
  • 22. Unemployment insurance benefit Duration of benefits Unemployment insurance benefits is paid monthly up to a maximum number of months determined by age and duration of time worked. Unemployment benefits are paid on a monthly basis on condition that the jobseeker updates his status. To be eligible for benefits, jobseekers must have already work for at least 4 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 of benefits depends on the duration the jobseeker has been affiliated : 1 day of affiliation = 1 day of benefit At the end of a job contract, the maximum limit of insurance benefits is 24 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 without application of the maximum duration to those aged 61 and over who are not eligible for retirement benefits. Benefits are never paid immediately, except in the case of resumption of payments already approved (see opposite). Benefits until retirement Those who have received benefits for 365 days minimum and who are aged 61 or over can be compensated beyond the statutory periods if they have not worked the minimum number quarters required to qualify for retirement benefits until the number of quarters needed is reached. Full retirement eligibility is granted between 65 and 67 on condition that proof is provided of having made retirement contributions for 100 quarters (25 years), including 12 years as a salaried employee. 22
  • 23. PA RT 2 THE STARTING POINT FOR PAYMENT OF BENEFITS In all cases, that “7 days non-entitlement” period applies from the date of registry as a job seeker*. In addition, if the person concerned has received: • Compensation for outstanding days of pay holiday, a delay period corresponding to the number of days covered by this compensation is calculated; • one or more severance indemnities, of which the amount is above the legal compensation (meaning the minimum compensation amounts set by French law), Pôle Emploi calculates a “specific” delay period taking account of the supralegal indemnity. 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 days Total...........................................................................................................................................................................53 days The jobseeker will receive benefits from 31st of May - 7 days after the end of the 53 days period if his registration is in before the 24th of May . 23
  • 24. Unemployment insurance benefits Interruption of benefit payments Benefits payments interruption cases are specified by law. A return to work does not automatically suspend benefits payment. The payment of insurance benefits will be stopped on the day that the claimant : • Is no longer registered as a jobseeker, unless he is granted an exemption from job searching ; • Is in receipt of, or is entitled to receive benefits from the Social Security for sickness, accident at work, or work related illness ; • Is disqualified from receiving unemployment benefits by administrative decision or following his exclusion by Pôle Emploi, in particular due to refusal 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 to receive 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 child under three years old ; • Is no longer living in France or in its territories ; • Has provided inaccurate information or made false statements in order to 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 accepts a lower-paying position (see opposite). 24
  • 25. PA RT 2 POSSIBLE BENEFIT ENTITLEMENT WHILE ENGAGED IN REDUCED EMPLOYMENT Partial accumulation of unemployment benefits and wages There 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, a number of non entitlement days will be determined on the basis of the gross earnings of the new employment : gross earnings of the new job Days of non entitlement to benefit = daily earnings reference level For employees aged 50 years or older, the number of days of non entitlement to benefit is reduced by 20 %. Daily benefits are paid for the number of days corresponding to the number of calendar days of the month from which days of non entitlement benefit are deducted. Aide différentielle de reclassement The “aide différentielle de reclassement” may be paid to the beneficiary if he accepts a job whose pay, for a same number of hours worked, is at least 15 % less that of his or her previous position. Beneficiaries under age 50 must be registered with Pôle emploi for at least 12 months. Those aged 50 years and over can benefit regardless of the duration registration. These two situations cannot be combined. Assistance for those buying or starting a new business This corresponds to the remainder of 45 % of the compensation due, and is paid in two times as a capital. This capital is paid only if the person does not request to continue to receive partial payment of benefits. EMPLOYEES WITH SEVERAL JOBS HAVING LOST ONE OF THEM When a beneficiary keeps a reduced employment or an occasional work at the same job held before the loss of his full-time position, the payment of unemployment insurance allows him to be fully compensated for 15 months maximum (limit not applicable to persons aged 50 and over) along with the income earned from the retained activity, provided that it corresponds to less than 110 hours worked each month, and totals less than 70 % of the previous income from the lost job combined with the part-time or occasional work. 25
  • 26. Solidarity benefits Solidarity benefits is a fixed amount allocated according to the jobseeker’s resources. L’allocation de solidarité spécifique (ASS) ASS is for people who have exhausted their rights to unemployment insurance benefits, or to for people aged 50 years or older who have the possibility to choose between unemployment insurance benefits and solidarity benefits. This form of aid may also be paid, under certain conditions, to certain categories 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 not entitled to unemployment insurance benefits, either because they have not worked 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, 1953 who can provide proof of having worked enough quarters to qualify for full retirement benefits, but who have not yet reached the legal retirement age (see page 18). ATS may be paid to those who have exhausted their rights to unemployment insurance, or to complete unemployment benefits in order to ensure a minimum level of income. Various measures encourage those who receive solidarity benefits to return to work : combining benefits with earned income, and monthly bonuses (see opposite). 26
  • 27. PA RT 2 RETURNING TO WORK IN THE SOLIDARITY SCHEME The solidarity benefit scheme provides incentives to return to work. These incentives depend 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 activity ASS beneficiaries who work 78 hours or more per month, and those who have a non salaried activity may be eligible to receive supplemental of income for up to 12 months under 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 from paid work, plus a monthly bonus of € 150). Return to work with less than 78 hours per month ASS beneficiaries who work less than 78 hours per month, and those who receive ATA (regardless of the number of hours worked) can also receive additional income for 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 gross income 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 the amount exceeding half the minimum wage. • During the next 6 months, the amount of the compensation is reduced by 40 % of all of the income earned from the new job. 27
  • 28. L’allocation de solidarité spécifique ASS is paid for a renewable period of 6 months, as long as financial resources and active job search conditions are met. It concerns the long term unemployed who have exhausted their rights to unemployment insurance benefits. The unemployed aged 50 years or more can choose between receiving unemployment insurance benefits or solidarity benefits. Qualifying conditions • Total income is limited to : € 1094,10 for a single person, and € 1719,30 for a couple (as of January 1, 2012). • To prove five years of employment within 10 years before the contract of employment ended. Work includes periods of training or national service, (for those who stopped working for at least one year to care for a child or children, this period can be reduced under certain conditions). Amount The 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 benefit For 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
  • 29. PA RT 2 L’allocation temporaire d’attente ATA is paid for a varying length of time according to the beneficiary’s situation and concerns : • Expatriated employees back to France who have not contributed to unemployment insurance and who can prove 182 days worked in a foreign country, • Ex-offenders released after two months or more of imprisonment • Those seeking asylum 18 years of age and older, who have requested political asylum from the Office Français pour la Protection des Réfugiés et Apatrides (OFPRA) • Those receiving temporary protection and holders of a temporary residence permit, • Those receiving subsidiary protection and holders of a temporary residence permit, • Foreign victims of human being trade who hold a temporary residence permit and a certificate of protection by the French State. Qualifying conditions Those 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 € 189.97 Allowance amount The amount set at € 330,30 per month (Indicative amount). 29
  • 30. PA RT 2 L’allocation transitoire de solidarité (ATS) ATS is designed for jobseekers born between July 1, 1951 and Dec. 31, 1953 who can provide proof of having worked enough quarters to qualify for full retirement benefits, but who have not yet reached the legal retirement age (see page 18). Those in this category must also meet certain revenue requirements. ATS may be paid to those who have exhausted their rights to unemployment insurance (replacement ATS), or to complement unemployment benefits when the beneficiary’s income is less than 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) Amount As of January 1, 2012, the maximum daily ATS allowance is € 33.74. The monthly amount corresponds to the number of days in the month x the daily benefit amount. ATS benefit are paid until the person reaches the legal age of retirement. The ATS amount is revised every year by decree. 30
  • 31. PA RT 3 Social Protection Coverage of risks of illness, maternity and death. Health insurance (covering illness, maternity and death) A person with social protection prior to unemployment will continue to benefit from health insurance (refund or daily benefits) as long as he/she entitled to unemployment benefits. Social protection may then be extended for 1 year. Concerning the universal health coverage scheme, any person residing in France in a stable and regular manner who is not entitled to any other type of health insurance covering illness and maternity may at least benefit from a reimbursement of his/her medical, pharmaceutical or hospital expenses in accordance with the social security rates in force. 31
  • 32. PA RT 3 Social Protection Periods of entitlement to unemployed benefit counted for pension contribution purposes. Basic system For 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 at all, periods of unemployment may, under certain conditions, be credited up to a limit of 1 year, or 5 years for those aged 55 years and over, and who have contributed for 20 years. Additional retirement benefits To supplement the basic system, additional retirement “points” are granted to jobseekers who receive benefits and who have contributed to additional retirement savings plans. Depending on the type of plan, it may be funded by the Unédic, the state, the jobseeker him or herself, or the retirement plan itself. To receive full retirement benefits at the basic rate, retirement insurance contributions must 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 quarters born in 1949 161 quarters born in 1950 162 quarters born in 1951 163 quarters born in 1952 164 quarters born in 1953 and 1954 165 quarters born in 1955 166 quarters 32
  • 33. APPENDIX Working outside France • Working outside France in a European Economic Area country or Switzerland can qualify for unemployment insurance benefits when the person returns to France and registers as a jobseeker. • For a work in another foreign country, the regulation also provide opportunities to receive unemployment insurance benefits. The European Economic Area (EEA) and Switzerland Periods of employment in the countries within the EEA countries or Switzerland can qualify people who have returned to France and registered as jobseekers for unemployment insurance benefits, provided that their most recent employment took place in France where they have worked again (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 as of January 1, 2007 : Bulgaria and Romania. During a transitional period until January 1, 2014, citizens of the latter two countries must have a work permit in order to benefit from EU accords. Other countries Appendix 9 to the unemployment insurance guidelines stipulates : • Mandatory unemployment insurance affiliation for expatriated employees of EEA countries or Switzerland working under a contract signed in France. In case of return to France, unemployment insurance coverage is the same as for employees working in France ; If no compensation based on the prior salary is possible, ATA temporary aid may be paid if proof is provided of 182 days of employment (see page 27). • In other cases, there is the possibility of optional affiliation with the expatriated employee’s unemployment insurance either by the employer, or by the employee himself. To be eligible, individuals must provide proof of at least 18 months of paid employment in the 24 months preceding the end of the contract. 33
  • 34. FACTS & FIGURES NUMBER OF JOBSEEKERS RECEIVING BENEFITS Receiving unemployment benefits in June 2011 2,309,400 NUMBER OF AFFILIATED INSTITUTIONS For unemployment insurance 1,586,185 at the end of 2010 BENEFITS PAID AND BUDGET OF THE RAC IN 2009 Benefits paid in millions of euros Unemployment insurance system (ARE, AREF, CRP, ACA) 28,657 Unemployment insurance, State (CTP)) 92 ASS, ATA, AER, AFD, APS 2,635 State Early retirement (dismissal and progressive) 215 AFDEF, AFF, AFFS 241 Unemployment insurance system budget in millions of euros Receipts = 31,302 including 30,319 contributions 195 various agreements 453 in CRP contributions Expenses = 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 refunds INSURANCE ALLOCATIONS Daily amount as of July 1, 2012 Minimum benefit € 28.21 Fixed part € 11.57 EARLY RETIREMENT AND MUTUAL AID BENEFITS Daily amount of mutual aid benefits as of Jan. 1, 2012 ATA / temporary aid € 11.01 ASS / specific solidarity benefits € 15.63 AER / retirement equivalent benefits € 33.74 34
  • 35. SOCIAL PARTNERSHIP SUPPORTING EMPLOYMENT Unemployment 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
  • 36. Notice DAJ 266 - 09/2012 - Réalisation graphique : V. Margaillan Direction des Affaires Juridiques 4 rue Traversière • 75012 Paris www.unedic.org N° 2011/40221