Bonus-malus : the reform of Pénicaud is accurate

The establishment of a system of bonus-malus on employer contributions to the unemployment insurance fund in order to limit the excessive use of short-term is a

Bonus-malus : the reform of Pénicaud is accurate

The establishment of a system of bonus-malus on employer contributions to the unemployment insurance fund in order to limit the excessive use of short-term is accurate. It is one of the sensitive measures of the reform of the unemployment insurance program, which will be presented on 18 June by the prime minister in person. And the purpose of which is to fight against the precariousness of employment and to push individuals to return quickly on the labour market. During his general policy speech delivered Wednesday, Édouard Philippe has already said that "the five to ten areas of activity" the more fond of short-term will be impacted by this device that provides to vary the rate of contribution to the downward or upward - in order to change the behaviour of employers. Remains to define those areas that should be included, logically, in the hotel, catering or the medico-social. In contrast, the executive will not, according to our information, on its initial position: if the sector of the temporary escape to the bonus-malus, it will be indirectly affected. In effect, these are companies that use contracts temporary workers - clients of the companies of temporary work, so that will be taxed.

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The executive also intends to address the contracts of extras (CDD use) not regulated, said Edouard Philippe, via "a measure transversal", which would apply to other sectors. A fee of a few euros - the amount could be two digits - should be imposed on the employer at the end of each CSD to use. The goal is, again, to discourage the multiplication of such contracts of very short duration. Finally, with this reform, which also aims to revise some of the compensation rules, the executive still intends to carry out between 3 and 3.9 billion euros of savings over three years (see pages 22-23). And this, in order to accelerate the deleveraging of the system of unemployment insurance, whose debt amounts to some 35 billion euros. A highly ambitious goal...

Updated Date: 16 June 2019, 00:00

Kathleen Lees

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