New short time working provision based on collective bargaining and ‘quid pro quos’. A new mechanism that provides long-term support for companies in return for a set of commitments, particularly in terms of maintaining employment, is thus being planned. Both the level of compensation for employees whose activity is reduced and the level of State reimbursement have yet to be established by decree, but the idea is to increase the State element if the company, that has had to make recourse short time working to persevere through the crisis, negotiates or enters into a collective sector agreement, which not only defines the terms of the short time working, but also provides for company commitment in return, and in particular in terms of maintaining employment.
France: short time working new scheme will soon be implemented as a long-term measure, but must be accompanied by guarantees to maintain employment.
France’s National Assembly and Senate are close to the final adoption (by 10 June) of the emergency bill that contains new provisions for other urgent measures as well as for the United Kingdom’s withdrawal from the European Union. The agreement reached between the two Chambers on 02 June, which has yet to be formally adopted, empowers the Government to further adapt the short time working scheme to take account of the needs of a gradual recovery and to create a special provision for companies permanently affected by the crisis although not likely to fail.
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