Partial or technical unemployment (partial activity): employer's procedures

Verified 01 November 2024 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Labor

In the event of partial employment within a company, employees affected by a loss of wages are compensated (also known as short-time work or technical unemployment) by the employer. How to perform the application for authorization partial activity? What is the remuneration paid to the employee in the course of the partial activity? What allowance is charged to the employer in the event of partial activity? We're doing an update on the regulations.

To cope with a drop in activity in the company, the employer may engage in partial activity in the following cases

  • Economic conditions
  • Supply difficulties
  • Exceptional disaster or bad weather
  • Company transformation, restructuring or modernization
  • Any other exceptional circumstances (e.g. COVID-19)

It can take several forms:

  • Decrease in weekly working hours
  • Temporary closure of all or part of the establishment

The employer may collect for its employees a partial activity allowance up to:

  • 1,000 hours per year per employee whatever the professional branch
  • 100 hours per year per employee if the partial activity is due to modernization work on the company's facilities and buildings

Affected employees

An employee with an employment contract under French law (DTA: titleContent, CSD: titleContent in particular) shall be entitled to partial unemployment, whether it is:

  • Full or part-time
  • In package agreement in hours or days of the year
  • Traveler, Representative and Placer (VRP)
  • Employee employed in France by a foreign company without establishment in France
  • Paid by the Seal
  • Temporary employee on assignment contract following suspension, cancelation or termination of a signed supply contract
  • Under DTAs under the wage portage
  • Executive in the event of total closure the company or part of it (e.g. closure of a workshop or a company department)
  • Homeworker paid by the job
  • Freelance journalist

Excluded employees

The following employees do not benefit of short-time work:

  • Employees whose reduction or suspension of activity is caused by a collective labor dispute (e.g. strike)
  • Employees with a contract of employment under French law who work abroad
  • Expatriate employees with a local law contract

In the companies 50 or more employees, the employer shall consult for opinion, on Social and Economic Committee (ESC) prior to its application for administrative authorization for partial activity.

The consultation covers the following topics:

  • Grounds for recourse to partial activity
  • Occupational categories and activities concerned
  • Level and criteria for the implementation of schedule reductions
  • Training measures envisaged or any other undertaking given by the employer

The ESC shall be informed at the end of each authorization period of the conditions under which the partial activity has been implemented.

Please note

in the event of an accident or exceptional circumstances, the employer shall have a period of 2 months to consult and send the opinion of the ESC in support of its request for prior authorization.

Application procedure

The procedure varies depending on the exceptional nature of the request, in case of disasters or bad weather.

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Exceptional circumstances

The employer must submit an application for authorization to engage in a partial activity to the DDETS: titleContent.

The employer has to apply within 30 days of the placing of its employees in partial employment.

Warning  

This approach must obligatory be carried out on the internet.

The application shall specify the following:

  • Ground for the use of partial activity
  • Expected period of sub-activity
  • Detailed circumstances and economic situation giving rise to the request
  • Number of employees concerned

It must be with the prior opinion of the Social and Economic Committee (ESC).

In the event of an accident or exceptional circumstances, the employer has two months to consult and send the ESC's opinion in support of its request for prior authorization.

The administration has a response time of 15 calendar days upon receipt of the application for authorization. An acknowledgement of receipt of the DDETS or DDETS-PP shall specify the period after which the absence of a reply shall constitute authorization.

When the request is refused, the decision shall specify the reasons for the refusal.

The progress of the investigation of the case can be monitored on the Internet.

Once the administrative authorization has been obtained, the employer may reduce or suspend his activity and place his employees on technical unemployment insurance. It is this authorization that enables him to obtain reimbursement of the allowances paid to the employees.

Disasters and bad weather

The employer must submit an application for authorization to engage in a partial activity to the DDETS: titleContent.

The employer has to apply within 30 days of the placing of its employees in partial employment.

Warning  

This approach must obligatory be carried out on the internet.

The application shall specify the following:

  • Ground for the use of partial activity
  • Expected period of sub-activity
  • Detailed circumstances and economic situation giving rise to the request
  • Number of employees concerned

It must be with the prior opinion of the Social and Economic Committee (ESC).

In the event of an accident or exceptional circumstances, the employer has two months to consult and send the ESC's opinion in support of its request for prior authorization.

The administration has a response time of 15 calendar days upon receipt of the application for authorization. An acknowledgement of receipt of the DDETS or DDETS-PP shall specify the period after which the absence of a reply shall constitute authorization.

When the request is refused, the decision shall specify the reasons for the refusal.

The progress of the investigation of the case can be monitored on the Internet.

Once the administrative authorization has been obtained, the employer may reduce or suspend his activity and place his employees on technical unemployment insurance. It is this authorization that enables him to obtain reimbursement of the allowances paid to the employees.

Other reason

Prior to the start of partial activity, the employer must submit a prior application for authorization to undertake partial activity to the DDETS: titleContent establishment.

Warning  

This approach must obligatory be carried out on the internet.

Application for prior authorization and compensation for partial activity

The request must be with the prior opinion of the Social and Economic Committee (ESC).

The administration has a response time of 15 calendar days upon receipt of the application for authorization. An acknowledgement of receipt of the DDETS: titleContent specify the period after which failure to reply shall be considered as authorization.

When the application is refused, the decision shall specify the reasons for the refusal.

The progress of the investigation of the case can be monitored on the Internet.

Once the administrative authorization has been obtained, the employer may reduce or suspend his activity and place his employees on technical unemployment insurance. It is this authorization that enables him to obtain reimbursement of the allowances paid to the employees.

Please note

an employer with at least 50 establishments in more than one department may submit a single application for all its establishments.

Maximum duration of authorization

The authorization for partial activity may be granted for a period of 3 months. It may be renewed up to 6 months, whether consecutive or not, over a period of 12 months consecutive.

Liabilities vis-à-vis employees

The employer must to propose commitments on employment and vocational training in its application for authorization.

The procedure varies depending on whether the authorization is first applied for, less than or more than 3 months after a previous period of partial activity.

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The employer is requesting partial activity for the first time

The employer undertakes to keep employees in employment during the period of partial activity.

It must also comply with the conditions for authorization of partial activity.

New application less than 3 years after a previous period of partial activity

The employer must make commitments to the employees if he makes a new prior request for a partial activity authorization.

This obligation shall apply if he has already placed his employees in partial employment during the 36 months preceding the date of submission of his new application.

Such commitments, referred to in its application for authorization, may include the following:

  • Retention in employment of employees for up to twice the period of authorization
  • Specific training measures for employees placed in partial employment
  • Actions on forward management of jobs and skills (GPEC)
  • Measures to restore the company's economic situation

The Dreets: titleContent fix these commitments, which shall be notified in the authorization decision and ensure that the employer complies with the commitments entered into.

Please note

In the event of non-compliance, the employer may be required to reimburse the sums received in respect of the partial activity allowance.

New application more than 3 years after a previous period of partial activity

The employer undertakes to keep employees in employment during the period of partial activity.

It must also comply with the conditions for authorization of partial activity.

The employer must pay the employee compensation corresponding to 60% of his gross salary per hour unemployed person, or approximately 72% hourly net salary.

Such compensation may not or be inferior to €9.40, or be superior to a ceiling of €32.08 per nonworking hour.

The allowance is paid by the employer on the usual date of payment of the salary.

The employer must indicate on the employee's pay slip (or in an appended document) the number of hours paid, the rates applied and the amounts paid.

A collective agreement or arrangement and a unilateral decision by the employer may provide for additional compensation.

FYI  

In the case of a backup, of recovery or liquidation The judicial service and payment agency (ASP) pays the sum directly to the employee on the decision of the prefect.

Please note

employees on an apprenticeship or professionalization contract whose remuneration is less than Smic: titleContent also receive a partial hourly working allowance. Its amount is equal to the percentage of the Smic: titleContent or the treaty provisions applicable to them.

The partial activity allowance paid by the government varies according to the sector of activity on which the company depends.

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General case

If the employer has obtained administrative authorization, he may file a claim for compensation which enables him to obtain the monthly repayment of remuneration paid to the employees concerned.

The employer may receive the partial activity allowance up to a maximum of ceiling of 1 000 hours per year per employee.

The allowance is fixed at 36% gross hourly earnings.

It is:

  • €8.30 minimum
  • €19.25 maximum.

The payment is made by the Service and Payment Agency (ASP), which acts on behalf of the State.

Warning  

in the event of fraud or misrepresentation, the employer shall be liable to imprisonment for up to two years and €30,000 of fine.

Transformation, restructuring or modernization of installations

The employer may receive the partial activity allowance up to 100 hours per year per employee.

The allowance is fixed at 36% gross hourly earnings.

It is equal to:

  • €8.30 minimum
  • €19.25 maximum

The payment is made by the Service and Payment Agency (ASP), which acts on behalf of the State.

Warning  

in the event of fraud or misrepresentation, the employer shall be liable to imprisonment for up to two years and €30,000 of fine.

Each month, in order to obtain reimbursement of the allowances, the employer must submit a claim for the partial activity allowance on the Internet.

Application for prior authorization and compensation for partial activity

The employer must submit its application within 6 months following the end of the period covered by the partial activity authorization.

Payment is made by the Service and Payment Agency (SPA) which acts on behalf of the State.

Warning  

In case of fraud or misrepresentation, the employer faces up to 2 years imprisonment and €30,000 of fine.

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