Short-term : the Senate introduces its expertise

This is a study commissioned by the Senate to the French economic Observatory (OFCE), which will fuel the debate, already heated, on the taxation of a bonus-mal

Short-term : the Senate introduces its expertise

This is a study commissioned by the Senate to the French economic Observatory (OFCE), which will fuel the debate, already heated, on the taxation of a bonus-malus to companies that are abusing the contracts are very short. This is one of the controversial topics of the ongoing negotiations between trade unions and employers on unemployment insurance. The institute's keynesian advocates to create a contribution proportional to the unemployment insurance, which would lower depending on the seniority of the duration of the work contract and which reward the companies most virtuous. "The majority in the senate opposes a tax on short-term contracts," insisted Elizabeth Lamure, the chair of the delegation to the enterprises of the Senate. This study shows "that a solution can be found to settle the issue short-term contracts without curtailing the hiring and preserving (finance, editor's NOTE) of the unemployment insurance system," said senator LR.

" READ ALSO - Macron wants a penalty for companies who are abusing short-term contracts

Even the sound of a bell on the side of Bruno Coquet, economist at the OFCE. For him, this device is not a "bonus-malus" but a "pricing according to the behavior of the company. This proposal, which is similar to that of the CFDT, the risk of arousing the ire of the employers fiercely opposed to the bonus-malus. In fact, according to the device considered, an surcotisation insurance-unemployment 7 % - 4.05 % today - would be imposed on those companies in the first month of the employment contract. Then, this contribution is expected to fall gradually to reach, in the sixth month of the contract, a lower rate than it currently is 3.75 %. A franchise system would allow however to exempt small firms or growth which, for structural reasons, can not avoid the short-term, specific BOARD without, however, define the terms of application.

Updated Date: 21 December 2018, 02:00

Kathleen Lees

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