The companies most affected by the health crisis, such as the restaurant and hotel sectors, as well as gyms and event organizers, will benefit from the State's payment of 10 days' paid vacation per employee.
A support measure estimated at several hundred million euros
After numerous meetings with the various trade federations, and some disagreements within the government, a new support measure has been agreed: the State will pay for 10 days paid vacation per employee, as part of the short-time working scheme.
In establishments closed due to sanitary measures, vacations were accumulating, and this accumulation risked weighing heavily on the cash flow of these companies, which were already hard hit.
Professional federations, notably those representing hotels, cafés and restaurants, as well as cross-industry employers' and trade union organizations, were initially calling for 15 days' coverage, while Labor Minister Elisabeth Borne was not at all in favor of the measure, estimated to cost 1.5 billion euros.
The State and Unédic will cover the full amounts normally paid to employees by companies, i.e. 70% of gross salary, or 85% of net salary. Leave will have to be taken between January 1 and 20, 2021, to enable reserves to be drawn down before the scheduled reopening date of the establishments covered by this measure.
Two conditions must be met in order to benefit from paid leave coverage
Two categories of company are concerned by this government aid.
Firstly, establishments that have been administratively closed during the two confinements, for a period of 140 days in 2020. These include sports halls, restaurants and entertainment venues.
This also applies to businesses that recorded a drop in sales of at least 90% during the state of health emergency. This second criterion includes hotels which, while not subject to administrative closure, have nevertheless lost their customers. At the start of the negotiations, these establishments were not expected to be affected by this measure, which was therefore greeted with relief by the hotel industry.