{"id":7393,"date":"2024-03-19T10:53:04","date_gmt":"2024-03-19T09:53:04","guid":{"rendered":"https:\/\/veryswing.com\/6-questions-you-may-have-about-short-time-working.html"},"modified":"2024-03-19T10:53:04","modified_gmt":"2024-03-19T09:53:04","slug":"6-questions-you-may-have-about-short-time-working","status":"publish","type":"post","link":"https:\/\/veryswing.com\/en\/6-questions-you-may-have-about-short-time-working.html","title":{"rendered":"6 questions you may have about short-time working"},"content":{"rendered":"

Many companies have already resorted to short-time working under the government’s COVID-19 scheme. The aim of this company support scheme is to limit redundancies and retain the company’s skills so that it can cope when business picks up again.<\/p>\n

Short-time working enables companies to reduce or even interrupt employee activity, but the new decree raises a number of administrative questions. Here are the answers to the 6 questions you may have about this device.<\/p>\n

What is short-time working?<\/h2>\n

Also known as “technical unemployment” or “partial activity”, this is a system that enables companies to reduce or interrupt employee activity.<\/p>\n

Article R5122-1 of the French Labor Code provides a framework for this system, setting out the valid reasons why a company may resort to short-time working:<\/p>\n

    \n
  1. Economic conditions<\/li>\n
  2. Difficulties in sourcing raw materials or energy<\/li>\n
  3. Exceptional damage or bad weather<\/li>\n
  4. Company transformation, restructuring or modernization<\/li>\n
  5. Any other exceptional circumstances<\/li>\n<\/ol>\n

    <\/h2>\n

    How does short-time working work?<\/h2>\n

    The request for short-time working must be made by the employer, and must comply with the grounds laid down in the French Labor Code.<\/p>\n

    To set up partial activity, employers must apply online via the following portal: https: \/\/activitepartielle.emploi.gouv.fr.<\/a><\/p>\n

    You have 30 days in which to make the request from the moment you put your employees on short-time working. This request can be granted for a period equivalent to 12 months.<\/p>\n

    In other words, if you apply on April 20, 2020, authorization may be granted until April 20, 2021.<\/p>\n

    When partial activity is in place, the employer receives an allowance from the Agence de services et de paiement (ASP) representing 70% of the employee’s gross remuneration (around 84% of his net salary).<\/p>\n

    This allowance is limited to a salary of 4.5 SMIC and a minimum of \u20ac8.03 per hour.<\/p>\n

    To illustrate this, here are 3 examples given by the government:<\/h3>\n

    Example 1:<\/h4>\n

    An employee earns 10.15 euros gross per hour (1 SMIC gross) for a 42-hour week. His company’s activity was completely interrupted for three weeks.<\/p>\n

    70% of 10.15 is equal to 7.1 euros, which would be the amount of the partial activity allowance. However, this amount is below the floor of 8.03 euros.
    \nAs the decree sets the minimum allowance at 8.03 euros, the hourly allowance paid to the employer will be 8.03 euros.<\/p>\n

    Partial activity takes into account the number of hours not worked, up to a maximum of 35 hours per week. 7 hours a week (42-35=7) will therefore not count towards the allowance if the employee is completely unemployed.<\/p>\n

    The employer will receive an allowance of : 8.03 x 35 x 3 = 843.15 euros.<\/p>\n

    The employer must pay the employee an equivalent indemnity. It will not be subject to social security contributions. There will be no out-of-pocket expenses.<\/p>\n

    Example 2:<\/h4>\n

    An employee earns 30.45 euros gross per hour (3 SMIC gross) for a 20-hour weekly contract. His company’s activity was completely interrupted for a week.<\/p>\n

    70% of 30.45 is equal to 21.31 euros.<\/p>\n

    Partial activity takes into account the number of hours not worked, up to a limit of 35 hours per week or the contractual number of hours. 20 hours will therefore be counted towards the allowance.<\/p>\n

    The employer will receive an allowance of : 21.31 x 20 = 426.2 euros.<\/p>\n

    The employer must pay the employee an equivalent indemnity, subject to CSG and CRDS (6.7%). There will be no out-of-pocket expenses.<\/p>\n

    Example 3:<\/h4>\n

    An employee earns 50.75 euros gross per hour (5 SMIC gross) for a 35-hour week. His company’s activity was completely interrupted for two weeks.<\/p>\n

    70% of 50.75 is equal to 35.52 euros.
    \nThe result is over 31.98 euros (representing 70% of 4.5 smic\/hour gross).<\/p>\n

    Partial activity takes into account the number of hours not worked, up to a limit of 35 hours per week or the contractual number of hours. 70 hours will therefore be counted towards the allowance.<\/p>\n

    The employer will receive an allowance of : 31.98 x 35 x 2 = 2238.6 euros.<\/p>\n

    The employer must pay the employee compensation of : 35.52 x 35 x 2 = 2,486.4 euros.<\/p>\n

    This allowance will be subject to CSG and CRDS (6.7%).<\/p>\n

    The employer will have to pay: 2486.4 – 2238.6 = 247.8 euros.<\/p>\n

    <\/h1>\n

    Who can benefit from short-time working?<\/h2>\n

    All the company’s employees may be affected by partial activity, regardless of their type of contract, seniority or working hours.<\/p>\n

    The employer must request it, and does not need the employee’s agreement.<\/p>\n