To reduce unemployment, the government is considering reducing the number of conventional terminations
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The rise in unemployment irritates Matignon. To cope with the recent increase in the number of jobseekers which should continue at the end of the year according to INSEE, the government wishes to find emergency measures.
Among these, the government would like to reform conventional terminations, according to information from The gallery. This system allows an employee and his employer to end the employment contract amicably and the former to leave the company while receiving unemployment benefits.
“The executive notes that this system, born in 2008 following an agreement between employers and unions, today has perverse effects on employment,” notes the newspaper. Indeed, the number of conventional terminations increased from 395,151 in 2017 to 503,526 in 2022, according to figures communicated by the Ministry of Labor, an increase of 27.4% in five years.
“The world of work has changed”
As a result, the government believes that this system encourages employees not to resign to register with Pôle emploi and thus weigh on the State’s accounts, something impossible with resignation or abandonment of position. A paradox, notes La Tribune, which recalls that this system was created to help employers remove an employee who has become undesirable and “remove the fear of hiring” and thus promote employment.
Tightening the unemployment compensation system for seniors would be another avenue studied by the Minister of the Economy Bruno Le Maire, who wants a lowering of the duration of unemployment compensation over 55s to align it with those of other unemployed people.
In recent months, the executive has already tackled conventional ruptures. Since September 1, the cost of this amicable separation has increased for employers. The social package that the latter must pay on the compensation paid increases from 20 to 30%, within the limit of twice the annual Social Security ceiling, i.e. 88,000 euros.
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