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France Pushes Talks on ‘Rupture Conventionnelle’ Reforms After Unédic Cost Report

Unédic says targeted tweaks to waiting periods and indemnities would yield limited savings.

Overview

  • In 2024, about 515,000 individually negotiated contract terminations generated roughly €9.4 billion in unemployment payments, or 26% of total allocations, according to Unédic.
  • Unédic models lengthening the specific waiting-period cap from 150 to 180 days or scrapping the cap, estimating second‑year savings of €25 million and €200 million respectively.
  • The report also considers counting statutory severance in the waiting‑period calculation, with combined measures potentially reaching €440 million in second‑year savings.
  • Labor minister Jean‑Pierre Farandou has been meeting unions and employers to relaunch negotiations, with talks potentially replacing a broader unemployment‑insurance bargaining process previously slated by mid‑November.
  • Unions including the CGT and FO reject any cut to unemployment rights, while lawmakers have already approved at first reading a hike in employer levies on rupture‑conventionnelle payouts to make the mechanism less attractive.