Negotiated terminations: the Senate transposes the agreement of social partners into law

On Wednesday, April 1st, the Senate transposed into law an agreement reached between social partners to reduce the duration of unemployment insurance compensation in the event of a negotiated termination, a measure denounced on the left which could eventually generate more than 800 million euros per year.

The agreement reached in February between three employers' organizations (Medef, CPME, U2P) and three trade union organizations (CFDT, CFTC and FO) notably provides for reducing the maximum duration of compensation for beneficiaries under 55 years of age from 18 to 15 months, after an amicable termination of employment contract.

This period would be set at 20,5 months for those over 55 years of age.

This agreement, which the CGT and the CFE-CGC did not sign, requires a legislative hook, hence the government's filing of a bill that fits in one line.

The Senate adopted it by 236 votes to 39 dissenting votes from the Greens and Communists. It is now sent to the National Assembly, which is scheduled to examine it on April 16, according to the current agenda of the lower house.

Labor Minister Jean-Pierre Farandou defended the agreement, calling it "proof that social dialogue works." He explained that it could generate "up to 800 million euros by 2029, while also facilitating 15.000 additional returns to employment each year."

The Senate's Social Affairs Committee, relaying information provided by Unédic, estimated that the gain for social finances could reach 940 million euros in total "at cruising speed", according to its rapporteur Laurent Burgoa (The Republicans).

The government had initially asked the social partners to generate at least 400 million euros in savings per year through these negotiations on negotiated terminations.

The Senate majority, which leans to the right, and the government have both justified the need for this reform by the increase in negotiated terminations, which have increased by more than 63% between 2015 and 2024 and represent "more than a quarter of unemployment insurance expenditure, or nearly 9,4 billion euros" according to Mr. Farandou.

The left criticized the agreement, stating it was signed solely to save money at the expense of workers. Socialist Monique Lubin denounced it as an "unacceptable setback for workers' rights." Her group abstained from voting.

"The measure is less a rational adjustment than a structural tendency to reduce the rights" of benefit recipients, criticized the environmentalist Raymonde Poncet Monge.