France: specific long-term short time working scheme set up

The decree setting up a “specific short time working system” for cases of a “lasting reduction in activity” was published in France’s official journal on 30 July. The regime allows companies faced with a “lasting reduction in activity” to place their employees on short time working for a longer period (24 months instead of 6), with greater leeway to vary the periods of activity/inactivity provided that the employer makes commitments to maintain employment and that a collective agreement provides a framework for the measure.
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The decree details this new mode of short time working, which was instituted by the emergency law of 17 June 2020 (see article n°11981) and can be used by companies until 2025 since they have until 30 June 2022 to file an application. This comes in addition to the improved short-time working scheme introduced in the context of the Covid-19 health emergency (which will itself be revised downwards from 1 October).

The measure. It allows working hours to be reduced by up to 40% of statutory working time for a maximum of 24 months, which do not have to run consecutively but must fall within a reference period of 36 consecutive months and be divided into six-month periods.

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