Unemployment Insurance: Council of State validates reform of calculation of allowance

According to an assessment of UNÉDIC, up to 1.15 million persons opening up in the year following the entry into force of the reform would affect a lower monthly allowance (17% on average).

Le Monde with AFP

It was the last obstacle to the application of a major social reform of the five-year. Wednesday, December 15, the Council of State rejected the appeal on the substance of the unions against the new calculation of the unemployment allowance that came into force on the 1 October.

“It is not necessary to rule on the conclusions of the requests directed against the provisions of the Decree of 30 March 2021”, which amended the calculation of the allowance, concludes the Council of State in its decision, published Wednesday.

“With this rejection, it can be considered that the dispute on the reform is closed,” said the CGT lawyer at AFP, M e Antoine Lyon-Caen. “There will still be a substantive audience on the date of entry [in force, the October 1, the subject of another decree], but it will be purely formal,” He assured.

A lower monthly allowance for more than one million applicants

The judges followed the opinion of the public rapporteur Marie Sirinelli who had rejected at the hearing of November 15 the different “critics” of the unions.

Footing opposite since the departure to the reform, they believe that the new method of calculating the daily baseline (sjr), base of the allowance, will penalize jobseekers alternating unemployment and activity, the ” permittents “. However, “a large majority of jobs created today are contracts of less than one month,” said Yves Veyrier (Secretary General of FO), when rejecting a first resort from unions to invalidate the ‘entry into force of the reform.

For the judges of the State Council, these differences in treatment raised by UNÉDIC “benefit people whose employment periods are the closest” and are not “obviously disproportionate”.

According to an assessment of UNÉDIC last April, up to 1.15 million persons opening up in the year following the entry into force of the reform affects a lower monthly allowance (17% in average), with at the same time a “theoretical duration of compensation” elongated (fourteen months on average against eleven before the reform). The Ministry of Labor challenges this quantification which, according to it, does not take into account the improvement of the economic situation or “behavioral effects” expected because of the reform.

The remainder of the disputed reform is also applied since the December 1 . It is now necessary to have worked six months over the last twenty-four months instead of four on the last twenty-eight to benefit from an unemployment benefit. According to the impact study of UNÉDIC, this passage from four to six months will lead during the first year of application to delay the opening of rights for 475,000 people, including young people or seasonal members who multiply short contracts (CDD or temporary missions), often with the same employer.

The degression of 30% (for unemployed people under 57 who have lost more pay 4500 euros gross) applies in the seventh month and not the ninth.

/Media reports.