Job seekers - Unemployment insurance reform: what measures apply on 1 December?

Job seekers – Unemployment insurance reform: what measures apply on 1 December?

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Two measures of the unemployment insurance reform come into force on 1er December 2021. The degressivity of the unemployment benefit from 7e months for the highest earners and the new rules on the eligibility conditions for unemployment insurance for unemployed workers from 1er December 2021. Indeed, the conditions indicating a lasting improvement in the employment situation were met on 1 October. A decree published in Official newspaper from 20 November 2021 fixed to 1er December 2021 the entry into force of the measures provided for by the unemployment insurance reform.

Noting the achievement at 1er October 2021 of the two conditions to which these measures were subject, the degressivity of the unemployment benefit from 7e months for the highest earners and the new eligibility conditions for unemployment insurance come into force on 1er December 2021.

The end of the application of the transitional provisions provided for by the decree of April 14, 2020 is set for 1er December 2021. This is indicated by the decree of November 18, 2021 published in the Official newspaper of November 20, 2021.

Degression of the allowance for high incomes

The following two conditions, indicating a lasting improvement in the employment situation, were met on 1er October 2021:

  • the total number of declarations prior to hiring (DPAE) for contracts of more than one month excluding temporary work had to exceed a threshold (set at 2,700,000) over a period of 4 consecutive months;
  • the number of job seekers in category A must have fallen by at least 130,000 over the last 6 months.

So, from 1er December 2021, the degressivity of the unemployment benefit for the highest incomes comes into effect from 7e month.

This measure will apply to people whose employment contract ends on or after 1er December 2021, with the exception of those whose dismissal procedure was initiated before this date.

The degression will take place at the earliest from June 2022 for people who opened their right to unemployment on 1er December 2021.

The 6-month countdown at the end of which the degressivity applies had been suspended between 1er March 2020 and June 30, 2021, i.e. 487 days in total. He started shooting again from 1er July 2021.

Conditions of eligibility for unemployment insurance

From 1er December 2021, the conditions for opening the right to unemployment are changing. To be able to be compensated by the unemployment insurance, it will be necessary to have worked 6 months during the last 24 months.

This condition applies to persons deprived of employment whose employment contract ended on or after 1er December 2021.

For people whose dismissal procedure was initiated before 1er December 2021, the current conditions apply: you must have worked 4 months in the last 24 months to receive the return to work allowance (ARE).

The hiring behavior of companies with 11 or more employees, which are part of the sectors that make the most use of short contracts, will be observed for 12 months. If, after one year, they do not offer more lasting contracts to the employees they employ, an additional contribution to unemployment insurance, which can go up to 1% payroll, will be asked of them. Conversely, if they offer contracts of better quality than the average of other companies, their contribution will be reduced.

Companies with less than 250 employees will be able to benefit from specific support to change, if necessary, their work organization and their hiring practices. Lasting a maximum of 30 days, this service will be provided by a human resources consulting firm and financed by the regional directorates for the economy, employment, labor and solidarity (DREETS).

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