Particle.news
Download on the App Store

France Adopts Law Cutting Unemployment Pay After Ruptures Conventionnelles

The measure is designed to rein in rising unemployment‑insurance costs and is expected to deliver roughly €800 million a year in savings once fully in place by 2029.

Overview

  • The National Assembly approved the bill in a definitive vote on Tuesday, passing it 353 to 114 and enacting a February deal between employers and some unions into law.
  • Under the law, maximum unemployment pay after a mutual contract termination will fall to 15 months for people under 55 and to 20.5 months for those 55 and over, with case‑by‑case extensions for seniors.
  • The change stems from a February agreement signed by Medef, CPME and U2P with the CFDT, CFTC and FO; key unions such as the CGT and CFE‑CGC did not sign the deal.
  • Lawmakers and the rapporteur say the reform responds to a rapid rise in ruptures conventionnelles—about 500,000–515,000 in 2024 that now account for over a quarter of benefit spending—and should yield steady‑state savings around €800 million a year by 2029.
  • Opponents warn the cuts will hurt older jobseekers and risk encouraging employers to use mutual departures to avoid formal dismissals, a point that fuelled the bill's unexpected rejection in first reading in mid‑April before it was reintroduced.