“Emploi franc”: a new legal framework providing financial aid to employers

A new Governmental aid called “Emploi franc” aims to support the recruitment of job seekers from low-income neighbourhoods. Applied on an experimental basis in specific areas since April 1st, 2018, this aid has been recently generalized nationwide.. It applies to employment contracts signed during 2020 year.

– Specific conditions targeting a limited audience –

This is a new decree published on December 28th, 2019 that specifies the legal framework of this aid.

In fact, several conditions are listed, including the targeted population:

• Employers of the private sector with an establishment in France which are up to date with their reporting and payment obligations towards the administration, having not proceeded in the six months preceding the hiring, to a dismissal for economic reason on the concerned position, not benefiting from another state aid for the integration, access or return to employment for the recruited employee (with the exception of professionalization contract related aids if the said contract lasts for at least 6 months);

• Some categories of job seekers, young people supported by a specific local organization (called “mission locale”) and persons under a specific redeployment-aid contract (called “Contrat de Sécurisation Professionnelle”), residing in a priority area designated by the Government to support their job-seeking  inhabitants, and who have not belonged to the company’s workforce during the last six months preceding the date of hire.

In order to help employers identifying the priority areas, the Government provides a research tool on a  dedicated website, available at the following address: https://sig.ville.gouv.fr/. A list of the different areas is also available on the same website at https://sig.ville.gouv.fr/atlas/QP/.

– An aid up to €15.000 –

If all the conditions are satisfied at the time of hiring, the employer will be eligible to the aid paid by the French unemployment agency Pôle Emploi, the amount of which depends on the nature of the contractual relationship. Below amounts are for a full-time employee (these amounts should be prorated for part-time contracts):

• €5,000 per year, within the limit of three years, for recruitment on an indefinite term contract.

• €2,500 per year, within the limit of two years, for recruitment on a fixed-term contract for a minimum duration of six months.

When the fixed-term employment contract giving entitlement to the aid is renewed for a period of at least six months, the employer continues to benefit from the aid, up to a total limit of two years.

Amounts are prorated based on the effective duration of the contract and any of the employee’s absences which do not have salary continuation.

The aid should be requested within 3 months of the signature of the contract.

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