After unemployment insurance, the elderly. Arriving at Unedic headquarters on Thursday at 9am, employers and unions managed to put a final point on the measures intended to improve the permanence of older employees in the labor market. Objective of this text: to increase the employment rate of 60-64 year olds, which is particularly low, in parallel with the progressive raising of the legal retirement age to 64 by 2027. A marathon day of negotiations, the last of the last, which was supposed to end this Friday, November 15th at the latest. A few hours earlier, a compromise had been found on the modification of the rules on unemployment insurance, the implementation of which is scheduled for January 1st.
The main provision for the elderly is the creation of a so-called “experience valorization” contract, nicknamed CVE, open to unemployed people aged 60 and over to facilitate their hiring. Upon hiring, the beneficiary must communicate to the employer the age at which he will reach the conditions for full retirement, a date which will lead to automatic termination of the contract. The wage supplement through unemployment insurance, to compensate for any shortfall (up to 30%) compared to the previous salary, and which was included in the project, has been withdrawn, a possibility postponed until later. Another “hard point” for unions, the application of a progressive exemption from unemployment insurance contributions for employers who hire a senior (requested in particular by the CPME) was finally postponed to 2027, after an evaluation scheduled for 2025.
The draft agreements are carefully examined by the government
Among other measures envisaged, progressive retirement has been improved, which currently concerns only 23,000 people. Allows « benefit from a fraction of the pension by carrying out a reduced professional activity”, recalls the draft employer agreement. The system will become accessible from the age of 60 (provided you have a minimum number of 157 quarters of contributions), while the legal retirement age will have to be gradually increased up to 64 years. senior negotiations will be mandatory every 3 years in companies with more than 300 employees and in subsidiaries, but without obligation of result.
By calling for a “renewal of social dialogue” in his general policy speech, Prime Minister Michel Barnier had gambled on returning control to the social partners after the failure of discussions under the Attal government. The two draft agreements will therefore be examined very carefully by the government. Unions and employers will bring together their respective requests to decide in the next few days whether to sign or not. Most should give the green light. A necessary condition for the executive to decide to approve the agreement on unemployment insurance and to implement the senior measures in the framework of a bill.
How can employers create a more inclusive environment for hiring older employees?
Interview Between Time.news Editor and Employment Expert
Time.news Editor: Good morning, and thank you for joining us today. We have an exciting topic to dive into—the recent negotiations surrounding employment measures for older workers in light of the increasing retirement age. To help us unpack this, we have with us Dr. Emily Charton, an employment specialist with extensive experience in labor market dynamics. Welcome, Dr. Charton!
Dr. Emily Charton: Good morning! Thank you for having me. I am looking forward to discussing this important issue.
Editor: Let’s start with the context. The government is raising the legal retirement age to 64 by 2027. Why is the employment rate for those aged 60-64 a particular focus in these negotiations?
Dr. Charton: That’s a great question. This age group has notably low employment rates, which presents a challenge for the workforce as a whole. Many older individuals want to work, but barriers such as employer biases, a lack of flexible work arrangements, and limited opportunities can keep them out of the job market. As the retirement age increases, it’s essential to create incentives for both employers and older employees to bridge this gap.
Editor: Exactly. And one of the measures being introduced is the ”experience valorization” contract, or CVE. How will this contract work, and what impact do you think it will have?
Dr. Charton: The CVE aims to facilitate hiring for unemployed individuals aged 60 and over. An employer will know upfront the hire’s retirement timeline, as the employee must inform them of when they will be eligible for full retirement. This transparency can reassure employers about the length of employment. However, the automatic termination of the contract upon reaching retirement eligibility could be a double-edged sword—it may incentivize hiring older workers, but it also could discourage employers who may fear losing employees shortly after hiring them.
Editor: That’s an interesting point. Another focal point has been the wage supplement that was originally included in the project but removed for now. How could this change affect the hiring of older workers?
Dr. Charton: The removal of the wage supplement could pose a significant hurdle. Many older employees, if unemployed, may find it challenging to accept positions that offer lower salaries, especially if they have experienced salary cuts upon reentering the workforce. Without this support, the risk is that older individuals might consider early retirement or remain unemployed rather than accept positions that don’t meet their financial needs. It’s a critical issue that needs addressing.
Editor: And what about the gradual exemption from unemployment insurance contributions for employers hiring seniors? That too seems to have been postponed.
Dr. Charton: Indeed, it has. While the idea of exempting employers from contributions was aimed at encouraging them to hire older employees, the delay to 2027 means that any potential impact on hiring practices won’t be felt right away. The proposed evaluation in 2025 will be crucial in determining how effective this measure could be in encouraging employers to engage more with older workers.
Editor: It sounds like there’s a lot of moving parts here. do you think these measures will successfully increase employment among the elderly in the long run?
Dr. Charton: I believe it’s a step in the right direction, but success will largely depend on how these policies are implemented and whether additional support mechanisms are introduced. There needs to be continued dialogue between government, employers, and unions to address the issues and ensure that the measures are effectively tailored to the needs of older workers. It’s crucial we create a culture that values experience and skills, regardless of age.
Editor: Thank you, Dr. Charton, for your insights. It seems we’re at a pivotal moment in shaping how older individuals fit into our evolving workforce landscape. We’ll certainly be following this topic closely!
Dr. Charton: Thank you for having me! I’m glad to shed light on this important issue, and I hope to see positive changes in the near future.