On July 1, 2013, employers’ unemployment insurance contributions on short fixed-term contracts will increase (up to 7 percent instead of 4 percent today). On the contrary, employers won’t have to pay this contribution if they permanently hire a person under 26 years of age. This is the consequence of a recital to the unemployment insurance agreement signed on May 29, open for signature and in the framework of the Employment Guarantee Act adopted recently, which reforms several aspects of labor law. (Ref. 130373)
In keeping with the Employment Guarantee Act (see article No. 130319), which should be promulgated soon (provided the Constitutional Council validates it), the social partners met, on May 29, to set up a system increasing unemployment contributions for precarious contracts. To that end, they came up with a recital (open for signature) to the unemployment insurance agreement of May 6, 2011. These provisions should come into force on July 1 for all fixed-term and permanent contracts effective
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