Reduced activity for job retention, a key feature of the recovery plan, came into effect on July 1. Patchwork Avocats presents this new measure commonly called Long-Term Partial Activity.
Preserving jobs and safeguarding skills in the context of the COVID-19 health crisis.
All companies faced with a sustainable reduction in activity which is not likely to compromise their sustainability.
Obligation to conclude a collective agreement comprising mandatory information including, among other things, the duration of the Long-Term Partial Activity, the reduction in hours applied, but also commitments in terms of employment and vocational training and the terms of monitoring the agreement. This agreement must be sent to the Direccte for validation (company agreement) or homologation (document drawn up in application of a branch agreement) no later than June 30, 2022.
Companies can reduce the working hours of their employees by up to 40% (50% in exceptional cases), assessed over the entire duration of the implementation of the Long-Term Partial Activity. The benefit of the Long-Term Partial Activity is granted in periods of 6 months, within the limit of 24 consecutive months or not over a period of 36 months maximum.
The hours not worked are compensated by the company up to 70% of its gross remuneration within the limit of 4.5 minimum wage. The company receives an allowance, still limited to 4.5 SMIC, up to:
- 60% of the remuneration for agreements sent to the administration before October 1, 2020
- 56% for agreements sent to the administration as of October 1, 2020