As part of a franchise business creation or takeover project, a job seeker can benefit from maintaining all or part of their unemployment benefits (article drafted in November 2021). By Olga Romulus, chartered accountant at Fiducial.
However, the unemployment insurance reform announced in November 2019 and then suspended due to the Covid-19 epidemic finally entered into force on October 1, 2021. How will this reform affect the thinking of the future franchisee who wishes by this device to preserve this source of personal income during the start-up phase of his business?
Who are the job seekers concerned?
The reform applies to those who register with Pôle emploi or recharge their rights from October 1, 2021. For people who are in the process of compensation, nothing changes until the rights are exhausted.
The scope of unemployment insurance beneficiaries is also broadened under certain conditions to two categories:
– the resigning employee who must have at least five years of seniority in his company and have a professional retraining project, the feasibility of which is assessed by an inter-professional joint committee;
– the self-employed worker who is now entitled to compensation of 800 euros per month for six months in the event of judicial liquidation if he has exercised his professional activity for at least two years and has generated a minimum income of 10,000 euros per year on the last two years before liquidation.
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What measures concern the job seeker who creates his franchise business?
Based on the decree of March 30, 2021, job seekers who create a business can be mainly affected by:
– The new method of calculating unemployment benefit
– The minimum working time required for entitlement to unemployment
– The degression of allowances for the highest incomes.
What are the new methods of calculating unemployment benefit?
The daily reference wage (SJR), which serves as the basis for calculating unemployment benefit, must no longer be calculated on the days worked in the last 12 months, but on an average monthly income taking into account the days worked, but also periods of inactivity. A floor mechanism has however been introduced to limit the reduction in the daily reference wage to a maximum of 43% compared to the old method of calculation.
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What is the minimum working time for entitlement to unemployment?
To be eligible for unemployment, new beneficiaries must have worked for at least four months out of two years. This is a temporary measure until a return to a more favorable employment situation (in principle on December 1, 2021), when the minimum membership condition will then be six months.
What about high income recipients?
For job seekers under the age of 57 whose income is greater than 4,500 euros gross per month, the reform plans to reduce unemployment benefit by 30% from the 9th month of compensation by Pôle Emploi. Again, this is a temporary measure until a return to a more favorable employment situation (in principle on December 1, 2021), where the degression for high incomes will apply from the 7th month.