Binding legal requirements Binding legal requirements for employment and for employment and

employability of senior employability of senior workersworkers

Dominique SACLEUXDominique SACLEUX

S/direction des mutations de l’emploi et du développement de l’activité…

Mission du Fonds national de l’emploi

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In France a low employment rate (35,7% in 2002)

of people aged 55 to 64

much lower than in the other countries of the European Union and far away from the European objective of an employment rate of 50% for workers aged 55 to 64 by 2010 (European summit Stockolm)

Situation mainly due to• Policy of massive public funding of early retirement since 1970• Retirement age lowered from 65 to 60 years for 37.5 years of contribution

in 1982.

French Context (1)

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3 main measures to increase the proportion of older workers in employment

1.2003 a government reform has gradually raised the pension contribution period to 41 years

2.2006-2010 a concerted national action plan for the employment of older with 5 purposes:

• Changing socio-cultural representations • Encouraging the continued employment of older workers• Promoting a return to the employment of older • Adjusting career endings • Tripartite monitoring over time

3.2010 new pension reform which provides for gradually increasing the retirement age from 60 to 62 years and the age of the full rate of 65, to 67

French Context (2)

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Basic principle of the 87th article of the Finance Law 2009 for social security:

• To reinforce the reforms, introduction of a penalty of 1% of payroll for companies with 50 or more employees who have not formalized a company agreement or plan of action regarding the recruitment and job retention of workers over 50/55 before 1/1/2010.

• The money is granted to the CNAV, national pension funds.

• Companies with 50 to 300 employees may be covered by a branch agreement signed with social partners. Branch agreements are subject to validation by the DGEFP and an extension by the DGT, to take effect.

General overview (1)

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General overview (2)

The possibilities to be removed from the scope of application of the tax

Companies with

50 - 300 employees

Companies with

> 300 employees Branch agreement validated and extended

Firm or group agreement Firm or group agreement

Firm or group action plan Firm or group action plan

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General overview (3)

Measures required for an agreement or action plan to remove companies from the scope of application of that levy

•Maximum period of application: 3 years

•A budgeted overall objective aimed at keeping older workers (> 55 yrs ) in employment and/or recruiting older workers (>50 yrs)

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General overview (3a)

• Choose actions in at least 3 of the following 6 mandatory provisions:

1. Recruitment of older workers by the company

2. Forward planning for career development

3. Improvement to working conditions and prevention of arduous working situations

4. Development of skills and qualifications and access to training

5. Adjustments for people approaching the end of their careers and measures to ease the transition between work and retirement

6. Passing on of knowledge and skills and the development of a mentoring system

NB at least 3 positive measures must be accompanied by a detailed objective calculated by

means of an indicator

• A monitoring system must be arranged and the result must be

communicated annually

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The assessment of this device is very positive. The mobilization of companies and social partners was very strong.

•81 sectors have an agreement validated and extended representing about 8.9 million employees.

•27.750 agreements and action plans of companies were filed. Given the relatively short time to prepare these documents, 71% are of action plans.

•80% of employees in companies with 50 or more employees are covered by an agreement, or a corporate action plan.

Results

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What can be found in the agreements

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What can be found in the agreements

Main objectives selected

77

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Maintien en emploi

Recrutement

77 agreements out of 81 have an objective to maintain workers aged 55 and over in employment

6 agreements have both objectives

Difficulty to select recruitment as one of the calculate objectives

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What can be found in the agreements

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What can be found in the agreements

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What can be found in the agreements

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What can be found in the agreements

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What can be found in the agreements

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What can be found in the agreements

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Provisional report on the implementation of the penalty of 1% of payroll

The device relies on spontaneous reporting the penalty in the statements of social contributions by employers who are not covered by an agreement, then on subsequent verification by collection agencies.

• 2010: € 5 188 000 of penalties paid by 480 companies. • First half of 2011: € 1 151 000

This may appear modest but it's a reflection of high coverage of companies by an agreement for employment of seniors workers

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Conclusion

• Since the adoption of this set of measures, the employment rate of people aged 55 to 64 increase steadily and continuously, and this trend was not challenged by the economic and financial crisis

• It remains below the average of the member countries of the European Union (46.3% in 2010), but this development reflects a change in behaviour that is expected to continue over time.

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37,8

38,538,1 38,2 38,2

38,9

39,7

41,4

34

35

36

37

38

39

40

41

42

2003 2004 2005 2006 2007 2008 2009 2010 2011

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plo

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55-

64

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Thank you for your attention!

Merci!