A decrease in the partial activity allowance paid to the employers, as well as in the partial activity indemnity paid to the employee, currently planned for May 1st, 2021
Since February 1st, 2021, the French government was planning to decrease the rates of the partial activity’s related allowance and indemnities. The evolution of the epidemic during the first months of 2021 finally made it necessary to postpone this decrease several times, its current effective date being now scheduled for May 1st, 2021, with the consequences detailed below.
The new rates applying as per May 1st, 2021 regarding the allowance reimbursed to the employers
In general terms, the employers who have employees placed in partial activity and who pay them the related indemnities, will see the rate of the allowance reimbursed by the French Government decreased from 60% to 36% on May 1st, 2021.
Regarding companies whose sector of activity is particularly impacted by the covid-19 crisis, listed in the appendixes 1 and 2*:
– The allowance reimbursed to the employers is settled at a rate of 70% until June 30th, 2021 regarding companies concerned by a loss in revenues of at least 80%. This category of companies in great difficulty, including the conditions surrounding the loss of revenues, should be specified in a decree to be published soon.
– For the other companies, the allowance reimbursed to the employers is settled at a rate of 70% until April 30th, 2021. This rate will be decreased to 60% for the month of May and eventually be settled at 36% as per June 1st, 2021, in line with the companies in other sectors of activity.
Employers obliged to suspend their activity, which involves receiving the general public, will continue to benefit from a 70% allowance’s rate until June 30th, 2021. The decrease to 36% will therefore be effective for them as per July 1st, 2021.
*Regarding the appendix 2, please note that depending on the activity, it is currently required to demonstrate a direct relation with activities listed in the appendix 1.
The new rates applying as per May 1st, 2021 regarding the indemnities paid to the employees placed in partial activity
With regard to the employees placed in partial activity, they will continue to receive from their employer an indemnity equal to 70% of their gross hourly salary for each hour of partial activity and until the end of April 2021. The rate of this indemnity will be decreased to 60% as per May 1st, 2021.
For employees from sectors of activity particularly impacted by the crisis (listed in the two appendixes):
– If they are working for a company in great difficulty (loss of 80% in revenues), they will continue to receive an indemnity equal to 70% of their gross hourly salary until June 30th, 2021.
– Regarding the other employees, the decrease from 70% to 60% will be effective on June 1st, 2021.
At last, for employees placed in partial activity, whose company’s activity involves welcoming the general public and which activity has been suspended because of the crisis, the decrease from a 70% rate to a 60% rate is planned for July 1st, 2021.
Note: new decrees are currently being prepared and probably will postpone again for one month (i.e. as per June 1st, 2021) the above-mentioned decreases in the partial activity rates. It is likely that only the effective date for this change in rates will be modified, without other change regarding the conditions of eligibility.
School closure: the exceptional measures applying for childcare are back
With the announcement of the closure of schools during the month of April, the French Government announced that employees who cannot continue to work (including from home) due to the necessity of childcare, are eligible to be placed in partial activity.
The Government specifies that only one parent can benefit from it, which involves the obligation for the employee to give his employer a statement of honor indicating that he/she is the only one of the two parents requesting to benefit from the partial activity measure on the grounds of childcare. The employer cannot then refuse to place the employee in partial activity.
Following the return to school on April 26th, and possibly until December 31st, 2021, employees obliged to look after a child under 16 or obliged to take care of a child with a disability will continue to be entitled to partial activity, when even telecommuting is not possible, by providing their employer with the cumulative documents below:
– A proof of the closure of the establishment welcoming the child (including a closure of the school), or a document from the health insurance, certifying that the child is identified as an at-risk contact case and must therefore be placed in isolation,
– A statement of honor indicating that the employee is the only one of the two parents requesting to benefit from the measure of partial activity because of childcare necessity.
The employer must keep the supporting documents, which may be requested in the event of a control by the French administration.
The French Government committed to provide full compensation regarding employees placed in partial activity to take care of a child as per April 1st, 2021.
Consequently, this involves that:
– The employers have to maintain 70% of their gross hourly salary for the concerned employees,
– The French Government will then reimburse them the same amount (based on the same 70% rate), regardless of the economic situation of their company or sector of activity.