Short-time Work: A New Set Of Measures To Cope With The Second Wave Of Covid-19

• Published date: 02 December 2020
• Subject Matter: Corporate/Commercial Law, Employment and HR, Coronavirus (COVID-19), Health & Safety, Employee Benefits & Compensation, Employee Rights/ Labour Relations, Securities, Employment and Workforce Wellbeing, Operational Impacts and Strategy
• Law Firm: Soulier Avocats
• Author: Ms Palesa Hove

In order to deal with the economic impact of the "second wave" health crisis, two Decrees amending the standard short-time work scheme on the one hand and the long-term short-time work scheme on the other hand were published on October 30, 2020.

What are the new measures laid down by these Decrees?

"Standard" short-time work scheme

Strengthened procedure for informing the Comité Social et Economique (Social and Economic Committee ("SEC"))

Article 1-1°of Decree 2020-1316 dated October 30, 2020

While in companies with at least 50 employees, the SEC must be consulted prior to the initial or renewal request for authorization to implement the short-time work scheme, it must now be informed, at the expiry of each authorization, of the conditions under which the short-time work scheme has been implemented.

Reduction of the maximum duration of the authorization to implement a short-time work scheme

Article 1-2°of Decree 2020-1316 dated October 30, 2020

As from January 1, 2021, the authorization to implement a short-time work scheme may be granted for a maximum period of three months. Prior to this date, the maximum duration of the authorization is set at 12 months, renewable.

The request for authorization to implement a short-time work scheme may be renewed up to a maximum limit of six consecutive or non-consecutive months over a reference period of 12 consecutive months.

Reduction of the compensation paid to employees and allowance paid to employers

Article 1-5°of Decree 2020-1316 dated October 30, 2020

As from January 1, 2021, employees put on short-time work will receive a compensation corresponding to 60% (compared to 70% previously) of their gross reference remuneration, up to a maximum of 4.5 statutory minimum wage.

In addition, for employees who benefit from variable elements of remuneration or elements of remuneration paid on a non-monthly basis, the reference salary used to calculate the compensation to be paid by the employer to such employees and the allowance to be received by the employer takes into account the average of these remuneration elements earned by the employees during the 12 calendar months – or during all the months worked when the employee has worked less than 12 calendar months – preceding the first day of implementation of the short-time work scheme.

In addition, the Decree specifies that the net compensation paid by the employer to an employee may not exceed the employee's usual net hourly remuneration.

Moreover, as from January 1,...