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France’s Social Partners Agree to Cut Jobless Benefit Duration After Mutual Separations

Implementation now hinges on internal ratification by March 23 followed by a parliamentary vote, preserving joint control of unemployment insurance.

Overview

  • Employer groups Medef, CPME and U2P reached a deal with the CFDT and CFTC to set specific unemployment rules for workers leaving a permanent contract by mutual agreement.
  • The maximum benefit duration would drop to 15 months for people under 55 and to 20.5 months for those 55 and over, replacing current longer caps.
  • Beneficiaries would receive intensified, personalized support, and those 55 and older could request extensions based on France Travail’s assessment of their job‑search efforts.
  • Projected savings start small and rise to about €940 million a year in steady state, surpassing the government’s €400 million annual objective, which the prime minister praised as “solid.”
  • The CGT and CFE‑CGC said they will not sign and FO has not yet decided, while the context includes roughly 515,000 such agreements in 2024 with about €9.4 billion in related benefit spending.