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The executive wants to reform conventional terminations to reduce their use

The dream objective of full employment is slipping away, to the great dismay of Emmanuel Macron, who sees unemployment figures starting to rise again after two years of decline.

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The executive wants to reform conventional terminations to reduce their use

The dream objective of full employment is slipping away, to the great dismay of Emmanuel Macron, who sees unemployment figures starting to rise again after two years of decline. “We are not there,” the President of the Republic growled in front of business leaders gathered at the Élysée on November 21. Before continuing by promising that “we will redouble our courage and energy in terms of work and employment”. So, after reviewing the calculation and duration of compensation for the unemployed, in 2021 and 2023 respectively, the government now intends to tackle conventional terminations. Information revealed by our colleagues from La Tribune Dimanche and confirmed by the office of the head of government. “The Prime Minister wants to launch a reflection,” says Matignon. Like the president, her objective is to achieve full employment and to achieve this, she wants us to think about new avenues for reform and to question existing systems, for example conventional terminations.

A trial balloon among others, released by the executive which is trying to find the magic potion in the face of an increase in unemployment which could continue. Already last Sunday, Bruno Le Maire and Thomas Cazenave raised the possibility of reducing unemployment benefits for seniors, which are now more favorable, while the employment rate of 50-64 year olds in France is still 15 points lower than that of 25-49 years old. At the same time, the government invited the social partners to look into the employment of seniors, the universal time savings account and professional wear and tear.

Born in 2008 from an agreement between employer and employee unions, the conventional termination consists of an agreement signed between the company and the employee. It allows the latter to leave their job while receiving unemployment insurance benefits, unlike resignation. A system created to make work more flexible, in accordance with business expectations. And which, since its creation, has enjoyed great success. While in 2012, there were 284,234 conventional terminations, there will be 503,526 in 2022. So many workers encouraged to register with Pôle emploi to receive compensation.

But already last September, the State - noting that the system would push more unemployment than employment - tightened the screws in this area, increasing from 20% to 30% the social security contributions made on departure checks. An attempt to curb the increase in the use of conventional termination which could therefore be followed by new restrictions. If no details on the question have been revealed, Matignon indicates that “Élisabeth Borne asked the Minister of Labor and the Minister of the Economy to think about proposals”, before a meeting scheduled “in December” with the ministers “to study different avenues”. A not necessarily opportune moment for the tenant of Rue de Grenelle who appears this Monday, November 27 in court for suspicion of favoritism while he was mayor of Annonay (Ardèche).

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