Extension of the professional security contract (CSP) until 31 December 2024

A decree of 28 December 2023 extends the professional security contract (CSP) for a further year. This was adapted last year in order to reinforce its advantages and to better inform the beneficiary of the contract.

What is the Business Security Agreement?

The CPMP is a device proposed by France Labor enabling the employee whose economic dismissal is envisaged to benefit from a package of measures designed to promote an accelerated return to employment.

The companies with less than 1000 employees and companies in liquidation or receivership have an obligation to propose the CPMP.

The conditions of application of the CSP vary according to the seniority of the employee: more than one year or less.

Favorable accommodations for beneficiaries

Amendment No 7 of 15 March 2023 to the Convention of 26 January 2015 introduced more favorable provisions for the beneficiaries of the professional security contract.

More advantageous calculation of the reclassification differential

The calculation of the Differential Reclassification Allowance (IDR.) no longer includes the remuneration of overtime or overtime in the new job in order to avoid the reduction of the amount of the IDR., see its interruption (this provision applies from 1^er April 2023, if the FMC ends after that date). The PRI is what the beneficiary of a CSP receives when he finds a job during it but his remuneration is lower than that which he had in his previous job.

Ability to accumulate “retained” professional activity remuneration with the professional security allowance (ASP)

Where the person, at the same time as his employment, pursues an activity (whether employed or not) before his dismissal and continues to pursue it after having been dismissed, he may receive the ESL in addition to the income from that activity if it is considered to be a ‘retained activity’.

For this, it is necessary that over the same period (in the last 24 months or 36 months for those under 53), the person has:

• carried out the 2 activities at the same time;
• accumulated the remuneration of these 2 activities.

If the person does not meet these conditions, he or she will not receive the ESL while carrying out this activity.

Non-application of the modulation scheme for the duration of payment of the return-to-employment assistance (ARE) allowance to the ESL

The Law of 21 December 2022 on emergency measures relating to the functioning of the labor market with a view to full employment states that the duration of unemployment benefits depends on the labor market. If it is favorable, the duration of compensation will be shortened by 25%. A coefficient of 0,75 shall be applied to the initial compensation period. Should the economic situation deteriorate, the current compensation period will be maintained.

Thus, at 1^er in february 2023, the duration of compensation for jobseekers was reduced by 25% due to the favorable labor market situation (unemployment below 9% or growth of less than 0.8% in one quarter).

In order to avoid a negative impact on CPMP beneficiaries, Amendment No 7 to the Convention of 26 January 2015 excludes the arrangements for the payment of the ESL from the modulation device.

New information communicated to the beneficiary

In order to improve the information provided to the person benefiting from the CPMP, Amendment No 7 introduced new information requirements for last year's France Labor. This information must be communicated to the employees concerned by an economic redundancy procedure initiated from 1^er February 2023.

Thus, the PESCO beneficiary must know:

• the amount of the occupational security allowance (ESL) and the duration of compensation in the event of membership of the FMC;
• the compensation arrangements in return-to-work assistance (RWA), where applicable, as a result of the withdrawal from FMC (amount and estimated duration after the FMC has been charged).

In addition, further information must now be provided by France Labor to the beneficiary 30 days before the end of the CPMP:

• the duration of the remaining ERA entitlement at the end of the CSP's provisional term, determined in calendar days, after the number of days compensated under the ESL has been allocated;
• the daily amount of the allowance paid at the end of the FMC and, where appropriate, the reduction which may result therefrom;
• the estimated starting point for compensation in the ERA;
• the possibility of reopening rights or reloading, in respect of activities carried out after the end of the employment contract which gave rise to membership of the FMC.