Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure FR-2013-27/2452 – Updated – measures in France
Country | France , applies nationwide |
Time period | Open ended, started on 01 July 2013 |
Context | COVID-19, Restructuring Support Instruments |
Type | Legislations or other statutory regulations |
Category |
Employment protection and retention
– Income support for people in employment (e.g., short-time work) |
Author | Frédéric Turlan (IRshare) and Eurofound |
Measure added | 23 June 2022 (updated 01 April 2023) |
Partial activity is a tool at the service of the public policy of prevention of economic redundancies which allows the employer in difficulty to have all or part of the cost of the remuneration of his employees covered. Partial activity is aimed at all employees who suffer a reduction in pay due to:
Requests for partial activity are formulated by employers if the drop in activity is caused by one of the reasons referred to in Article R. 5122-1 of the Labour Code, including that of circumstances of an exceptional nature, which is applicable in the COVID-19 crisis.
It is possible to implement partial activity when the reduction or the temporary suspension in the activity is due to:
The principle is to compensate earning losses experienced by workers due to the reduction in their working time under the legal, conventional or contractual duration (within the limit of 1,000 hours per year and per worker) while helping employers to fund this compensation.
Allowance Workers are granted an hourly differential, paid by the employer, equal to 70% of their gross hourly wage (approximately 84% of the net hourly wage). In any case, their remuneration cannot go below the statutory minimum wage. There is nothing to prevent an employer from compensating its employees in excess of 70% of gross salary if they can/wish to do so or if a collective or company-level agreement envisages such a measure. Workers placed under the partial activity scheme can benefit from training. In this case, the compensation is increased to 100% of the net hourly wage. The employer receives an allowance jointly from the state and the unemployment insurance body.
During partial activity, the employment contract between the employee and the employer is only suspended. Before placing its employees under partial activity, the company must ask the labour inspectorate for authorisation. Partial activity is allowed for a maximum period of 6 months, with the option to renew once.
Consultation Before implementing partial activity, in companies employing more than 50 workers, the employer has to consult the employee representatives on the economic reasons, the activities concerned, the levels and methods of reduction in working hours, the training activities considered. If there is no employee representative in the company, employees have to be informed about the implementation of partial activity in the company.
Partial activity during the COVID-19 pandemic
During the COVID-19 pandemic, the government issued ordinances to allow derogation to the current partial activity rules and to enlarge it in order to avoid redundancies. The partial activity has been extended to new categories of workers and to groups that are normally excluded (public companies, individuals who work from home). As a result, the short-time working scheme covers all employees of the private sector.
The following updates to this measure have been made after it came into effect.
28 December 2022 |
A decree of 28 December 2022 completes the long list of successive adjustments made to the two common law and long-term partial activity schemes. The text does not bring any major changes, but perpetuates temporary measures taken during the health crisis linked to the COVID-19 epidemic and secures the recovery of unduly paid sums. |
From 2015 to 2019, between 25,000 and 50,000 employees were placed in partial activity on average each month. The scheme was mainly used by the industrial sectors, which accounted for 54% of the workforce in partial activity on average between 2015 and 2019, compared with 18% of private salaried employment. As partial activity was mainly used by industry, particularly the automotive sector, it was predominantly male (74% on average between 2015 and 2019, compared with 55% of male private-sector employees) and concerned mainly manual workers (68% and 27% respectively).
The health crisis has led to a change in the scale of the system. Partial activity concerns 6.7 million employees in March 2020 and up to 8.4 million in April, at the peak of the first lockdown. In the summer, despite the relaxing measures and the lifting of many restrictions, more than one million employees are still in partial activity.
Compared to the pre-crisis situation, the sectoral structure of employees placed in partial activity is distorted. The complete cessation of activity in certain sectors, such as accommodation and catering and household services, has resulted in a doubling of the weight of mainly market services: it has risen from 30% in February 2020 to 65% in March, and thus exceeds its share in private salaried employment.
In 2020, partial activity thus affected all employee profiles. The change in the sectoral structure of partial activity brings the profile of employees placed in this scheme closer to that of all private sector employees.
More information can be found in the ERM legal database .
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
Workers in non-standard forms of employment |
Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
National government
Employers' organisations Public employment service |
Employer
National funds |
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
Form | Direct consultation outside a formal body | Direct consultation outside a formal body |
Social partners' role in the implementation, monitoring and assessment phase:
Social partners may be involved at company-level to agree about the partial activity scheme through a company-level collective agreement.
The scheme which aims to avoid job losses is highly supported by social partners.
Citation
Eurofound (2022), Partial activity, measure FR-2013-27/2452 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2013-27_2452.html
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