For many companies, the health crisis has led to a sharp drop in activity, or even complete closure, prompting the government to postpone the end of the short-time working scheme several times. Nevertheless, the compensation paid to employees benefiting from this scheme will be gradually reduced from July 1, 2021.
Lower allowance from July 1
Two decrees published in the Journal Officiel on May 29 set out the timetable for the new short-time working rules.
- The first details the changes planned for employees on short-time working.
- The second unveils the new rules for employers to cover the cost of this scheme.
After numerous postponements, the reduction in compensation paid to employees eligible for this scheme will become effective on July 1, 2021. More precisely, until June 30, the employees concerned will be compensated at 70% of their gross salary, or 100% if they are earning the SMIC. From July onwards, their compensation will drop, to 60% of gross salary or 100% if remuneration is equivalent to the SMIC.
As far as employers are concerned, the State's contribution to the cost of short-time working has been reduced since June. In fact, their remaining contribution has risen from 15% to 25%. From July 1, this will rise to 40%, and should remain unchanged.
What about protected areas?
The allowance paid to employees in the sectors hardest hit by the crisis (hotels, restaurants, tourism, art galleries and museums, etc.) will only be reduced from September 2021. Until then, they will continue to receive an allowance corresponding to 70% of their gross salary, or 100% if they are paid at the SMIC. The allowance will then be reduced to 60% of gross salary.
As far as companies are concerned, the State and Unédic will continue to cover all partial activity costs until June 30. However, from July 1, employers will be required to pay 15% of the cost, rising to 25% on August 1 and 40% on September 1.
Specific measures for companies experiencing a sharp drop in activity
Specific measures have been introduced for companies still suffering from the effects of the Covid-19 crisis, i.e. those belonging to a sheltered sector and those demonstrating a fall in sales of around 80%. Their employees will continue to be compensated at 70% of their gross salary until October 31, 2021. Only from November 1 will their compensation drop to 60% of gross pay. Those paid at the SMIC will continue to receive their full salary. The changes are similar in terms of the remaining costs for employers. The decrees do not specify the rules applicable from November 1, 2021.