Factsheet for case FR-2020-27/1836 – Updated – measures in France
|Country||France , applies nationwide|
|Time period||Temporary, 01 July 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
|Author||Frédéric Turlan (IRshare) and Eurofound|
|Case created||10 April 2021 (updated 18 May 2021)|
The third amending finance law for the year 2020 (L. No. 2020-935 of 30 July 2020, Art. 76) introduced hiring aid intended to limit the effects of the health crisis on the number of people taking up work-study contracts. Its implementation procedures were defined by two decrees of 24 August 2020: one concerns hiring under a "professionalisation" contract (D. No. 2020-1084), the other concerns hiring under an apprenticeship contract (D. No. 2020-1085). This temporary aid is granted for the first year of performance of apprenticeship or professionalisation contracts concluded between 1 July 2020 and 28 February 2021 for a maximum amount of €5,000 for a minor and €8,000 for an adult.
Beneficiary companies The aid is open to all companies employing private law employees likely to sign an apprenticeship or "professionalisation" contract (private law companies, associations, public industrial and commercial establishments, etc.).
Excluded from the "normal" one-off aid for hiring apprentices, companies with 250 or more employees are eligible for this exceptional aid provided that they undertake to reach a certain threshold of alternating work-study students in their workforce by 2021. They must therefore reach a quota of 5% of alternating students in their workforce (or a lower rate while demonstrating an increase in the number of alternating students).
Beneficiaries All persons eligible for the apprenticeship contract are entitled to aid for the recruitment of work-study students.
Length of the scheme This scheme only covers apprenticeship or "professionalisation" contracts concluded between 1 July 2020 and 28 February 2021. But this aid has been extended (see update below).
Amount of the financial support The amount of aid for hiring work-study students varies according to the age of the employee and reaches:
With this measure, the cost of recruiting an employee on a work-linked training scheme is considerably reduced. The aid covers almost 50% of the salary of a young person under 18 on a professionalisation contract and more than 65% for a young person between the ages of 18 and 20. The aid covers 100% of the salary of an apprentice under 21 years of age and 80% of the salary of an apprentice between 21 and 25 years of age.
According to the Ministry of Labour, nearly 1.3 million young people under 26 were hired on permanent or fixed-term contracts of more than three months between August and January this year, of which 340,000 have so far applied for aid. The cost between July 2020 and 31 March 2021 is estimated at €803 million.
However, the aid will not have been enough to maintain the level of hiring of young people. Thus, according to DARES, in February 2021, the hiring of young people under 26 on permanent and fixed-term contracts of more than three months was lower than in February 2019 and February 2020, by 10% and 19% respectively. For young people under 30 as a whole, the decline in hires is similar (-11% and -19% respectively compared to February 2019 and 2020).
Over the period August 2020 to February 2021, the number of cumulative hires reaches 1,399,000 for young people under 26 years of age on lasting contracts. This is 8% lower than the figure for the same period a year earlier. the same period a year earlier. The decline is 10% for young people under 30. (DARES, Situation sur le marché du travail pendant la crise sanitaire au 29 mars 2021).
Other groups of workers
Youth (18-25) in employment
|Applies to all businesses||Does not apply to citizens|
Social partners jointly
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners are consulted to the measures before the government takes its final decision.
This measure received the support of social partners, even some trade unions highlighted the risk of windfall effect.
Eurofound (2021), Exceptional aid for the recruitment of work-study students, case FR-2020-27/1836 (measures in France), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.