From January 1st the new rules on compensation for job seekers will come into force. A few hours before the censorship verdict, the government moved on to current events and made it known in particular that it would validate (even in the event of censorship) the agreement reached by the social partners on 14 November. An arbitration concluded hastily on Wednesday, according to Agence France Presse.
This legal approval by the executive is actually mandatory, or else it would have remained in the pipeline. Enough to create an unprecedented legal situation with the risk of a “closure” of the unemployment insurance system in the absence of this new convention which determines the management rules for the next four years.A scenario that would have led to the automatic interruption of the payment of unemployment benefits to all paid jobseekers starting from January 1st.Requested by us for several days, the Ministry of Labor refused to respond.
A relief for the signatories of this text, four unions and employers. With the exception of the CGT which refused, denouncing the measures as “particularly dangerous in a context of multiplication of social plans”.At the request of the government,the social partners have indeed tightened a number of compensation rules to participate in the budgetary effort. Savings: 867 million in four years.
It is therefore envisaged to move the age limits for the elderly people’s allowance. Today, unemployed people aged 53 or 54 benefit from a maximum of 22.5 months of benefits and 27 months for those aged 55 and over. From January 1st everything will be postponed by two years. You will need to be aged between 55 and 56 to be eligible for 22.5 months of benefits and 27 months for those aged 57 and over. as for the 53 and 54 year old beneficiaries, they will only be entitled to 18 months of benefits (like the rest of the unemployed).
Another crackdown that will affect all unemployed people: the amount of the allowance will take into account 30 calendar days for all months of the year, even for the unemployed who already receive the allowance. This equates to five or six fewer days of benefits per year.
However, according to parliamentary sources, a measure of the agreement that included a reduction in compensation for cross-border workers – and which was suppose to save 1.2 billion over four years – was ultimately abandoned for legal reasons.
How can job seekers prepare for the upcoming changes in unemployment benefits?
Interview with Labor Expert Dr. Emily Bennett on Upcoming Changes to Unemployment Compensation Rules
Editor: Thank you for joining us today, Dr. Bennett. as we approach the implementation of new unemployment compensation rules set to take effect on January 1st, can you share an overview of the most notable changes?
Dr. Bennett: Absolutely. The upcoming changes are critical, as they will impact unemployment benefits for many job seekers. First and foremost, the new regulations will adjust the eligibility period for benefits, particularly for older unemployed individuals. Previously, those aged 53 or 54 could receive benefits for up to 22.5 months, while those 55 and older qualified for 27 months. Starting January 1st,these age thresholds will shift,meaning that 55 and 56-year-olds will now be eligible for the longer benefits,while 53 and 54-year-olds will see their maximum benefits reduced to just 18 months,aligning them with the rest of the unemployed.
Editor: That’s a significant reduction for the younger age group. What could be the implications of this change?
Dr. Bennett: The implications are profound. Reducing the maximum duration of benefits can place additional financial pressure on individuals who are already struggling to find employment. It also raises concerns about the adequacy of support for those who have been laid off, particularly in an economic climate riddled with uncertainty. Coupled with the adjustment of benefit calculations to account for 30 calendar days instead of the current pattern, recipients may find themselves receiving five to six fewer days of benefits per year, further straining their budgets.
Editor: speaking of broader impacts, how do you perceive the government’s move to secure this agreement amid ongoing censorship discussions?
Dr. Bennett: The government’s swift legal validation of this agreement, even in the shadow of potential censorship, speaks to the urgency of managing the unemployment insurance system.Without this agreement, there was a tangible risk of a “closure” of the unemployment insurance system. This situation could have resulted in halted payments for all job seekers, which would have exacerbated the economic strains many citizens are already facing. So, in a way, this swift action was a preventative measure to protect both the social partners and the unemployed.
Editor: You mentioned social partners, and we saw that while most unions signed off on the updated rules, the CGT opposed them.Do you think such dissent could signal broader unrest in the labor market?
Dr. Bennett: Yes, it certainly could. The fact that a significant union like the CGT expressed concerns about the dangers of these measures indicates that there may be underlying tensions between the government’s fiscal policies and the welfare of workers. Their claim that the new rules come at a time when “social plans” are multiplying points to a climate of increased job insecurity.If the working population feels that their safety nets are being eroded, we might witness greater union mobilization or protests, which could lead to significant unrest in the labor market.
Editor: With these changes on the horizon, what practical advice would you provide to job seekers who may be affected by the new compensation rules?
Dr. Bennett: The best advice for job seekers is to stay informed and proactive. Individuals should assess their eligibility status under the new rules and consider contingency plans. Networking and upskilling can be valuable strategies to enhance employability. Furthermore,engaging with local employment agencies or career services can provide insights into available resources and job opportunities that may not be widely advertised. It’s essential for job seekers to remain vigilant and adaptable in this evolving economic landscape.
Editor: Thank you for providing such insightful commentary, Dr. Bennett. As we prepare for these pivotal changes, it’s clear that understanding these regulations will be crucial for many job seekers moving into 2024.
Dr. Bennett: thank you for having me. It’s vital for our community to navigate these changes together with knowledge and support.
