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Annual report : unemployment insurance in 2012

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Annual report : unemployment insurance in 2012

  2. 2. KEY EVENTS 4 KEY FIGURES 5 UNEMPLOYMENT INSURANCE BENEFIT 6 PAYING BENEFITS AND HELPING TO MAINTAIN SOCIAL EQUILIBRIUM 7 2012: zero growth, increased unemployment 8 Unemployment insurance coverage: 61% of jobseekers 9 Adapting to a more diverse labour market 10 Institutional cooperation for performance 12 A continuous improvement process 12 Activity of the Joint Regional Bodies (IPR) 13 Enhanced efforts to combat increasing fraud 13 Jobseeker benefit 14 ENCOURAGING AND PROMOTING STAYING IN AND RETURNING TO WORK 15 Staying in touch with the labour market 16 What is the Return-to-work support measure in the event of reduced activity? 16 Encouraging the return to work 18 Assistance for the takeover or creation of a company (ARCE) 19 Improved job security contract (CSP) 19 Training unemployment benefits (AREF) 20 Compensatory allowance upon redeployment (ADR) 20 Long-term reduced activity 20 Support to stay in work for the under 26s 20 Enhanced support measures 20 ENSURING THE FINANCING OF BENEFITS AND ASSISTANCE 21 Guaranteeing the payment of benefits 22 A major project: the Déclaration sociale nominative (identified payroll tax return) 22 Account certification challenges 23 The borrowing programme 23 Who are the recipients of Unemployment insurance? 24 GUARANTEEING THE QUALITY OF THE SERVICE RENDERED 25 Organising a balanced and concerted management of the Unemployment insurance scheme 26 Unédic and its environment 27 Providing and sharing insights into employment and unemployment 27 THE UNÉDIC BOARD 28 GLOSSARY 30 1 2 3 4
  3. 3. 3 2012 was characterised by a particularly demanding environment: unemploy- ment increased, growth was extremely slow if not stagnant, and the prospects for an improvement of the employment situation ever distant. In this context, Unemployment insurance plays a major role: by compensating employees who lose their job, it gives them security and encourages their job-seeking activity. In so doing, it also supports our economy: by replacing 69% of the net income lost, Unemployment insurance enables jobseekers to retain some of their pur- chasing power. Through this role as a shock absorber, Unemployment insurance has contributed to maintaining a social equilibrium despite worsening economic conditions and by taking into account both the diversity of those affected by unemployment and the situations that they encounter on the labour market. This ongoing concern with the conditions for compensation is illustrated in the agreement between Unédic, the State and Pôle emploi (State employment agency). Thisagreementhasbeeninforceforayear,supplementedbyaserviceagreement between Unédic and Pôle emploi. Quality monitoring indicators and conditions for compensating jobseekers have been jointly developed and monitored. We focused in particular on the timeliness of benefit payments and compliance with the method for calculating the entitlements of those affected by unemployment. Situated at the heart of this system, the social partners, negotiators of the Unemployment insurance convention, also enhanced their management effi- ciency in 2012 by fulfilling the commitments made as a result of the Agreement on the modernisation of the joint management system of February to maintain the link with the conditions for delivery of services by the various benefit pay- ment and recovery operators. For the benefit of employees, employers and job- seekers, in 2012 Unédic decided to acquire instruments enabling it to deal with the difficulties that managing their benefit poses for jobseekers. These difficul- ties are analysed with Pôle emploi in order to find pathways for improvement. From now on, a report will be drawn up every six months, primarily to supple- ment negotiators’ debates. Likewise, the transparency of governance is enhanced with, in particular, an audit committee, a remuneration committee and a monthly public summary of the Board’s meetings. 2013 will therefore be the first year these decisions will be operationally implemented. Our joint management model must continue to prove its effectiveness and cul- tivate its need for transparency: which are still the best guarantees of clear and responsible future negotiation. It also bears witness to the vitality of a social democracy that is modernising and taking its environment into account. Jean-François Pilliard President of Unédic FOR THE BENEFIT OF EMPLOYEES, EMPLOYERS AND JOBSEEKERS, THE UNEMPLOYMENT INSURANCE SCHEME FULFILLS ITS SOCIAL ROLE Editorial
  4. 4. 4ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 KEY EVENTS SIGNATURE OF THE TRIPARTITE AGREEMENT The State, Unédic and Pôle emploi sign a second agreement in order to promote jobseekers’ access or return to work. Three priorities are established at Pôle emploi: customisation of the service offering, stronger links with local communities and continuation of the effort to optimise resources. 11 JANUARY 2012 JANUARY ROUND TABLE ON THE THEME “2001-2011 DIFFERENT PERSPECTIVES ON UNEMPLOYMENT BENEFIT” The purpose of this round table is to shed new light on unemployment benefits by sharing economic, statistical and sociological knowledge. 3 FEBRUARY 2012 ELECTION OF THE PRESIDENT AND THE VICE-PRESIDENT The Board of Directors elects Jean-François Pilliard President of Unédic and Patricia Ferrand Vice-President. 7 FEBRUARY 2012 SIGNATURE OF THE NATIONAL INTERPROFESSIONAL AGREEMENT FOR THE MODERNISATION OF THE JOINT MANAGEMENT SYSTEM This agreement enhances the requirements for transparency in the governance and management of the Unemployment insurance scheme. 17 FEBRUARY 2012 FEBRUARY LAUNCH OF A BORROWING PROGRAMME Unédic raises 3.85 billion Euros and completes more than half of the programme planned for this year under favourable market conditions. 20 FEBRUARY 2012 CERTIFICATION OF UNEMPLOYMENT INSURANCE SCHEME ACCOUNTS: FIRST YEAR OF RECOVERY OF CONTRIBUTIONS BY ACOSS The 2011 annual accounts are certified by the Auditors during the Unédic Board Meeting. For the first time, they take into account the transfer of the recovery of contributions to Acoss. 27 JUNE 2012 JUNE EXTENSION OF THE LONG-TERM REDUCED ACTIVITY ARRANGEMENT FROM 1 MARCH TO 31 DECEMBER 2012 The social partners decide to increase the Unemployment insurance scheme’s contribution to financing the long-term reduced activity arrangement. 1 MARCH 2012 IMPLEMENTATION OF THE FINANCIAL SUPPORT ARRANGEMENT FOR YOUNG RECRUITS The purpose of this financial support arrangement for young people under the age of 26 who have been recruited is to help them cover the costs they face before receiving their first wage packet. 15 MARCH 2012 MARCH
  5. 5. KEY FIGURES JOBSEEKERS COMPENSATED BY THE UNEMPLOYMENT INSURANCE SCHEME* UNDER UNEMPLOYMENT BENEFIT (ARE) 2.2MILLIONS AMOUNT OF BENEFITS AND SOCIAL CONTRIBUTIONS PAID IN 2012 € 33.5 BILLION * ON AVERAGE IN 2012 - CVS DATA (Seasonally adjusted) 1.6MILLION EMPLOYERS CONTRIBUTING TO THE UNEMPLOYMENT INSURANCE SCHEME 5 2012 EMPLOYEES AFFILIATED TO THE UNEMPLOYMENT INSURANCE SCHEME 16.5 MILLION AMOUNT OF RECOVERED CONTRIBUTIONS € 32.4BILLION TRIPARTITE AGREEMENT MONITORING COMMITTEE First meeting of the committee responsible for monitoring and managing the provisions of the 2012-2014 agreement. 17 OCTOBER 2012 NATIONAL INTERPROFESSIONAL AGREEMENT RELATING TO COMPENSATION IN MAYOTTE With this agreement, the Mayotte unemployment insurance scheme will gradually fall in line with the scheme applicable in mainland France and in the other overseas departments and territories. 26 OCTOBER 2012 OCTOBER NEW UNÉDIC/PÔLE EMPLOI BIPARTITE AGREEMENT The bipartite agreement specifies the conditions for carrying out missions delegated by Unédic to Pôle emploi. Cooperation with Pôle emploi is aimed at continuously improving the quality of the service rendered to jobseekers. 21 DECEMBER 2012 DECEMBER INCREASE IN UNEMPLOYMENT BENEFITS The Unédic Board of Directors votes for a 2% increase in unemployment benefits from 1 July 2012. 1 JULY 2012 JULY
  6. 6. • Finances 64% of Pôle emploi’s budget • Implements the convention on Unemployment insurance • Negotiate and establish the rules for unemployment benefits • Determine the rate of contribution of employers and employees to the Unemployment Insurance scheme as part of a negotiation COMPENSATION By the Unemployment Insurance Scheme Organisation Since 1 January 2011,Acoss (CentralAgency of Social Security Organisations), CCMSA,CCVRP,the central funds of Monaco and St-Pierre et Miquelon have centralised recovery for greater simplicity for companies IN RECOVERED CONTRIBUTIONS € 32.4BILLION • Registration of jobseekers • Calculation and payment of their benefits • Support towards returning to work • Exploration of the labour market • Assistance to companies for recruitment • Job search monitoring DEDUCTED BY THE SOCIAL SECURITY ORGANI- SATIONS TO PROMOTE A SWIFT RETURN TO WORK MANDATORY INSURANCE AGAINST THE RISK OF JOB LOSS Employees and employers from the private sector contribute jointly to the financing of the Unemployment insurance scheme within the framework of an agreement negotiated by the social partners IN UNEMPLOYMENT INSURANCE BENEFITS € 30.0BILLION € 1.0BILLION IN RETURN-TO- WORK ASSISTANCE MANAGED JOINTLY PAID BY PÔLE EMPLOI FOR THE PÔLE EMPLOI BUDGET€ 3.0 BILLION 6ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 SOCIAL PARTNERS
  7. 7. 7 PAYING BENEFITS AND HELPING TO MAINTAIN SOCIAL EQUILIBRIUM Faced with the diversity of jobseekers and the increase in benefits expenditure, Unédic is financingarrangements that promote the return to work and is committed to improving the performance of institutional cooperation.
  8. 8. 8ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 Economic situation 2012 WAS MARKED BY ZERO GROWTH AND THE LOSS OF COUNTLESS JOBS WHICH LED TO CONTINUOUSLY INCREASING UNEMPLOYMENT. 2012 started in a fragile economic context. Growth in France shrank slightly in the 1st half of the year. As a result, French activity stagnat- ed over the whole of 2012, after a rise of + 1.7% in 2011. This stagnation was primarily rooted in a marked decline in investment and the weak- ening of household consumption. Neverthe- less, the French situation was not as bad as the rest of the euro zone. AN UNFAVOURABLE LABOUR MARKET THAT IS WEIGHING HEAVY ON THE INDEBTEDNESS OF THE UNEMPLOYMENT INSURANCE SCHEME Despite a positive balance in the first quarter in terms of job creation, the annual result for 2012 reveals a loss of 89,000 jobs. Following on from 2011, the decline in temporary employment continued in 2012. Consequently, the wage bill lost impetus and weighed heavily on the Unemployment Insurance scheme’s revenue. The loss of jobs, combined with an increase in the active population, led to increased unem- ployment and the lengthening of its duration. At the end of 2012, the unemployment rate as understood by the International Labour Office (ILO) stood at 10.2% of the active population in mainland France, i.e. 2.9 million unemployed people. The increase reached 3.4 points for young people under 25. Moreover, the number of long-term unemployed, who have been reg- istered with Pôle emploi for more than a year, went up by 12.5% over a year. MORE UNEMPLOYED PEOPLE EXERCISING A REDUCED ACTIVITY At the end of 2012, there were 4.6 million cat- egory A, B and C unemployed people in main- land France, i.e. an increase of 8.8% over a year. This huge increase was reflected in both the increase in jobseekers without a job registered in category A (+ 10.0% over a year) and peo- ple who exercised a reduced activity and reg- istered in category B (+ 9.5% over a year) or C (+ 4.5% over a year). The number of jobseekers in receipt of Unem- ployment benefit (ARE) under the Unemploy- ment Insurance scheme (2.3 million at the end of December 2012) increased by 6.0% over a year. The increase in beneficiaries of redeployment arrangements (occupation transition con- tract, personal redeployment agreement and improved job security contract) amounted to +14,300 (+20.2% over a year). 2012: zero growth, increased unemployment 396,000MORE JOBSEEKERS REGISTERED IN CATEGORIES A, B AND C IN 2012. 163,000 additional jobseekers in receipt of benefits compared to 2011.
  9. 9. 9 JOBSEEKERS REGISTERED WITH PÔLE EMPLOI AND UNEMPLOYED PEOPLE COMPENSATED BY THE UNEMPLOYMENT INSURANCE SCHEME Source: Pôle emploi, Unédic, Unédic forecast Fields: unemployed people compensated by the Unemployment insurance scheme, not in training, CRP, CTP, CSP, CVS data for the whole of France 2009 2010 2011 2012 2013 2014 2,500 4,000 5,500 1,000 2,000 3,000 DEFM A B C + DRE Unemployed people compensated by the Unemployment insurance scheme in thousands in thousands JOBSEEKERS REGISTERED WITH PÔLE EMPLOI FORECAST Source: DARES, Pôle emploi, Unédic forecast -50 0 50 100 150 200 250 2009 2010 2011 2012 2013 2014 DEFM A - left-hand scale DEFM ABC +DRE - right-hand scaleDRE - left-hand scale DEFM B and C - left-hand scale 3,000 4,000 5,000 6,000 in thousandschanges in thousands 4,683,000 people received Unemployment Benefit (ARE) or Training Unemployment Benefit (AREF) at least once in 2012. 2,421,570 PEOPLE IN RECEIPT OF BENEFITS ON AVERAGE EVERY MONTH IN 2012. A STABLE RATE FOR SEVERAL YEARS The rate of coverage of jobseekers by the Unemployment Insur- ance scheme is the proportion of jobseekers eligible for benefits under the Unemployment Insurance scheme compared to all the jobseekers registered with Pôle emploi. It includes the job- seekers who have acquired rights to Unemployment insurance even if they are not, momentarily, in receipt of benefits (in the event of reduced activity, for example). Between 2007 and 2011, the rate of coverage oscillated be- tween 62% and 63%. At the end of 2012, it was close to 61% taking into account the large proportion of jobseekers in re- duced activity some of whom, in a given month, were not in receipt of benefits when their activity exceeded the thresholds. Source: FNA, raw data at the end of December 2012, mainland France. * Jobseekers holding an acquired right to Unemployment insurance, but not in receipt of benefits during the month. UNEMPLOYED PERSONS COMPENSATED BY THE UNEMPLOYMENT INSURANCE SCHEME UNDER UNEMPLOYMENT BENEFIT (ARE) 2,305,300 “ELIGIBLE FOR BENEFITS*” 600,000 1,881,103 NOT COVERED BY THE UNEMPLOYMENT INSURANCE SCHEME 4,786,403 A, B, C END OF THE MONTH (DEFM) + EXEMPTED FROM JOB SEARCH (DRE) JOBSEEKERS UNEMPLOYMENT INSURANCE COVERAGE: 61% OF JOBSEEKERS 3 out of 5 jobseekers compensated by the Unemployment insurance scheme
  10. 10. 10ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 GROWTH IN BENEFIT EXPENDITURE The number of jobseekers required to actively seek work, unemployed (category A), continually increased in 2012. This phenomenon is linked to the combined effect of job losses and an increase in the active population. At the same time, the number of unemployed people com- pensated by the Unemployment insurance scheme con- tinued to increase over the whole year. Thus, at the end of December 2012, there were 2,262,000 unemployed people compensated by the Unemployment insurance scheme in France, i.e. an increase of +100,000 over the year (CVS data for the whole of France). Benefits ex- penditure increased by + 6.4% in a year. DIVERSE UNEMPLOYMENT SITUATIONS, DIVERSE JOBSEEKER PROFILES In recent years, the growth in short and temporary con- tracts has significantly changed the structure of the la- bour market. It is characterised by the fragmentation of activities and an increasingly frequent alternation be- tween employment and unemployment. At the end of 2011, more than half of Unemployment insurance benefit recipients registered after the termination of a fixed-term contract or a temporary assignment. Every month, job- seekers in reduced activity - who are working and looking for a job in the same month - represent almost one in two benefit recipients. Unédic identifies six groups of benefit recipients with the same characteristics: 26.0% of peo- ple made redundant after a full-time job; 23.2% of bene- fit recipients from part-time work; 20.3% at the end of a full-time fixed-term contract; 13.5% of temporary workers; 10.6% who made use of a contractual termination or a voluntary redundancy and 3.7% of employees from the entertainment industry. IMPROVING READABILITY AND UNDERSTANDING OF BENEFIT RULES Given the diversity of jobseeker profiles, the social part- ners must ensure the rules are adapted to the change in the socio-economic needs of employees and companies. Building on the agreement to modernise the joint man- agement system of 17 February 2012, Unédic provides for its meetings a half-yearly report on the difficulties of applying the regulatory aspects of the convention on Un- employment Insurance. In this framework, Pôle emploi identifies the application difficulties encountered by its employees. The joint prior- ity work concerns the management of files of Unemploy- ment benefit (ARE) recipients who alternate between short periods of work and unemployment or who register as jobseekers after losing one of the jobs carried out. It also concerns the terms and conditions for accessing data and the improvement of certain texts. The analysis will make it possible to identify what lies within Unédic’s management authorityandwhatrequiresachangeinregulationthrough negotiation. A WORK IN PROGRESS This approach guarantees swift identification and anal- ysis of difficulties. Forwarded to the social partners dur- ing the convention negotiation phase, the reports also supplement their dialogue to change the rules that stem from the negotiation. ADAPTING to a more diverse labour market Compensation Mayotte: gradual alignment with regard to the general unemployment insurance scheme On 26 October 2012,an agreement relating to unemployment benefits in Mayotte was signed by all of the employer organisations and CFDT,CFE-CGC, CFTC and CGT-FO.It stipulates that the unemployment insurance scheme,applicable in Mayotte from 2013, is managed by Unédic.As a transitional step,the current benefit rules are maintained.As of now,people at the end of a fixed-term contract,who were excluded from receiving the benefit,are taken into account.Gradually, the entitlements will be aligned with the general scheme.
  11. 11. 11 In 2012, Unemployment insurance beneficiaries received on average 1,080 Euros net per month, i.e. 69% of their net refer- ence salary. This replacement rate, namely the ratio between the benefit and the salary previously received, increases or de- creases according to the previous level of remuneration. Thus, beneficiaries of the Unemployment insurance scheme compen- sated on the basis of a minimum wage work reference (SMIC) receive a monthly benefit payment equivalent to 78% of their net reference salary. Furthermore, approximately a quarter of Unemployment insurance scheme beneficiaries are compensat- ed on the basis of part-time work references.Their replacement rate is higher.Thus, the beneficiaries compensated on the basis of part-time work references receive on average 77% of the net reference salary compared to 68% for full-time. In 2012, 90% of jobseekers received less than 2,000 Euros per month in benefits. REPLACEMENT RATE 69% OF THE NET REFERENCE SALARY PAID + 6.4% IN BENEFIT EXPENDITURE IN ONE YEAR 61%: AVERAGE SHARE OF ACQUIRED RIGHTS ACTUALLY USED UNEMPLOYED PERSONS COMPENSATED BY AGE AND BY SEX TEMPORARY WORKERSUNEMPLOYMENT BENEFIT AND UNEMPLOYMENT BENEFIT TRAINING 60 AND OVER 55 TO 60 50 TO 55 45 TO 50 40 TO 45 35 TO 40 30 TO 35 25 TO 30 20 TO 25 UNDER 20 150,000 100,000 250,000 200,000 5,000 150,000 100,000 250,000 200,000 5,000 0 60 AND OVER 55 TO 60 50 TO 55 45 TO 50 40 TO 45 35 TO 40 30 TO 35 25 TO 30 20 TO 25 UNDER 20 20,000 10,000 20,000 10,000 40,000 50,000 30,000 0 Source: FNA, benefit recipients currently compensated as at 31/12/2012. Raw data, whole of France. Source: FNA, benefit recipients currently compensated as at 31/12/2012. Raw data, whole of France. DISTRIBUTION OF BENEFIT RECIPIENTS AT THE END OF 2012 BY REASON FOR CONTRACT TERMINATION Source: FNA, benefit recipients currently compensated as at 31/12/2012. Raw data, whole of France. 2  % DEPARTURE FOR NO JUST REASON 38% END OF FIXED- TERM CONTRACT OTHER REDUNDANCIES 21 % REDUNDANCY FOR ECONOMIC REASONS 10 % 13 % CONTRACTUAL TERMINATION END OF TEMPORARY ASSIGNMENT 12 % OTHER REASON 4 % DISTRIBUTION OF EXPENDITURE IN 2012 Source: FNA, benefit recipients currently compensated as at 31/12/2012 Raw data, whole of France BENEFITS 30.0 billion Euros VALIDATION OF PENSION POINTS 1.8 billion Euros ASSISTANCE PACKAGES 1.0 billion Euros
  12. 12. 12ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 INSTITUTIONAL cooperation for performance Compensation WITH A VIEW TO CONTINUOUSLY IMPROVING THE SERVICE RENDERED, COOPERATION BETWEEN THESTATE, UNÉDIC AND PÔLE EMPLOI IS ENHANCED. Agreements structure the cooperation be- tween Unédic and its operators. They organise the terms for carrying out delegated assign- ments and define the distribution of roles and responsibilities. The direct relations between the industry departments of each institution are prioritised. Moreover, each agreement pro- vides for regular committee meetings to mon- itor, coordinate and manage the agreement in force. Likewise, shared inspection and audit procedures are agreed between Unédic and its operators. As main financier of Pôle emploi, Unédic sets out the operator’s roadmap with the State. A multi-annual tripartite agreement establishes Pôle emploi’s priorities in terms of compensa- tion, jobseeker support, service offering to com- panies, return to work, etc. These guidelines are monitored by indicators. All the services dele- gated by Unédic are also assessed. . ONE YEAR OF THE TRIPARTITE AGREEMENT BETWEEN THE STATE, UNÉDIC AND PÔLE EMPLOI The State, Unédic and Pôle emploi signed the multi-annual tripartite agreement on 11 January 2012. They intend to incorporate Pôle emploi in a further phase of its development for the benefit of jobseekers and companies. On the one hand, it is about going further in en- hancingandadaptingitsserviceoffering,and,on the other hand, about continuing to take steps towards reorganisation, in order to increase the number of employees in contact with the public. With the aim of promoting jobseekers’ access or return to work, three priorities are established at Pôle emploi. The establishment is called upon to customise its service offering, to develop strong- er links with local communities and to continue the effort to optimise resources. A NEW UNÉDIC/PÔLE EMPLOI BIPARTITE AGREEMENT On 21 December 2012, Unédic and Pôle emploi signed an agreement relating to service dele- gations and institutional cooperation. The text reasserts the objectives established by the multi-annual State/Unédic/Pôle emploi agree- ment. It also engages in a process of enhanced cooperation between both institutions for the benefit of an effective implementation of the arrangements delegated to Pôle emploi. A continuous improvement process Within the framework of its multi-annual audit plan, Unédic conducts audit assignments alone or with Pôle emploi on the process of paying benefits to jobseekers: quality of data entry having an impact on the calculation of entitlements, application of regulations, monitoring of processes against fraud and undue payments. In 2012, the rate of benefit recipient files without anomalies was 90.09%, up slightly on 2011. It is below the target of 92%.
  13. 13. 13 PURSUANT TO THE CONVENTION ON UNEMPLOYMENT INSURANCE, THE LOCAL SOCIAL PARTNERS, CONVENED IN JOINT REGIONAL BODIES (IPR), HAVE THE JURISDIC- TION TO RULE ON THE INDIVIDUAL CASES OF JOBSEEK- ERS OR EMPLOYERS FOR WHOM AN INDIVIDUAL REVIEW IS NECESSARY. 119,396INDIVIDUAL CASES PROCESSED 34.83% 41,586 VOLUNTARY REDUNDANCIES 0.89% 1,056 OTHER (total unemployment without termination of employment contract, increased payments etc.) OVERPAYMENTS 55,163 46.20% ASSESSMENT OF CERTAIN ELIGIBILITY CONDITIONS 21,591 18.08% 119,396 CASES PROCESSED TOTAL FOR THE WHOLE OF FRANCE Enhanced efforts to combat increasing fraud The fight against Unemployment Insurance benefit fraud has identifiedfraudulentsituationsamountingto76millionEuros, 37 million Euros of which fraud were avoided. Implemented by Pôle emploi, the strengthening of arrangements to prevent and combat fraud has increased the number of detections by 22.6%. The two main mechanisms for fraud concern undeclaredperiodsofwork(30.2%)andfictionaljobsandfalse employer attestations (16.3%). UNEMPLOYMENT INSURANCE SCHEME ACTIVITY IN 2012 2011 2012 Change over a year ARE AND CRP/CT/CSP FILES 8,249,291 8,139,967 -1.3% ADMISSION DECISIONS 2,194,917 2,290,222 4.3% FIRST PAYMENTS ON ADMISSIONS / READMISSIONS 2,300,211 2,414,124 5.0% PAYMENT STOPPAGES 3,492,902 3,524,581 0.9 % for return to work 725,211 682,369 -5.9 % for failure to update 544,329 540,801 -0.6 % for end of entitlements 1,071,422 1,147,399 7.1 % Source: STMP. Field: Whole of France, raw data. The Joint Regional Bodies (IPR) correspond to the local manifestations of the social partners who manage the Unemployment insurance scheme. They ensure the Unem- ployment insurance convention is properly applied within this framework and they are called upon to rule on the individual situations of jobseekers applying for Unemployment insurance benefits. They participate on a regional level in labour policy both during its development and for its monitoring. ACTIVITY OF THE JOINT REGIONAL BODIES THESE INDICATORS ARE MONITORED REGULARLY DURING COORDINATION COMMITTEES CONVENED BETWEEN UNÉDIC AND PÔLE EMPLOI. The Unédic/Pôle emploi bipartite agreement of 21 December 2012 sets out the assignments of both organisations and their procedures for carrying out these assignments by insisting on institutional cooperation. It also places emphasis on the monitoring of Pôle emploi’s performance in implementing the arrangements delegated to it. Five indicators are the focus of particular attention. Four of them make it possible to measure Pôle emploi’s performance in implementing the benefit payment assignment: - the rate of decisions in fewer than 15 days; - the rate of first payments on time; - the rate of quality of handling benefit applications; - the rate of recovery of overpayments. The status of these indicators reflects continued service qual- ity in a context of an increased workload; the current work with Pôle emploi and the “benefit payment” project of the 2015 Pôle emploi plan must make it possible to improve these results. Annual average in 2012 RATE OF DECISIONS IN FEWER THAN 15 DAYS 93.9% RATE OF FIRST PAYMENTS ON TIME 89.4% RATE OF RECOVERY OF OVERPAYMENTS 69.3% TRATE OF QUALITY OF HANDLING BENEFIT APPLICATIONS 90.6% PERFORMANCE MEASUREMENT INDICATORS OF COMPENSATION BY PÔLE EMPLOI Source: Pôle emploi - internal audit
  14. 14. Find all of the rules for compensation on unedic.fr COMPENSATION OF JOBSEEKERS JOB LOSS CONDITIONS TO BE MET TO QUALIFY FOR BENEFITS Involuntary job loss The Unemployment insurance scheme compensates a loss Length of affiliation One must have contributed to the scheme to benefit from it Registration Job search The unemployed person must be a jobseeker Physical aptitude The jobseeker must be able to take up employment AGE retirement age at full rate Residency The Unemployment insurance scheme applies across French territory RECEIVING BENEFITS AND RETURNING TO WORK RETURNING TO WORK WHILE RECEIVING BENEFITS RETURN TO WORK AFTER INTERRUPTION IN BENEFIT PAYMENT If the new job is lostIncentive to return to work by combining benefits with a salary Maximum accumulation period = 15 months The benefits must remain a replacement income and not additional income Resumption of entitlements Threshold conditions If affiliation insufficient If remaining entitlements are not forfeited Activity retained Total accumulation The activity must not exceed 110 hours/ month and 70% of the former salary If affiliation sufficient and other entitlement eligibility conditions fulfilledActivity taken up Partial accumulation Readmission Rules of application STARTING POINT FOR RECEIPT OF BENEFITS A waiting period of 7 days in all cases. A paid holiday deferral if the employer paid the compensatory paid holiday benefit.Principle of non-accumulation of 2 incomes over the same period of unemployment A specific deferral (max. 75 days) if the employer paid severance indemnities in excess of or different from those established by law.Deferral associated with the severance and not the ordinary performance of the employment contract Calculation of the number of days before payment of benefits ENTITLEMENT TO BENEFITS DURATION OF BENEFITS BENEFIT AMOUNT Information taken into account for the calculation Reference salary calculated on the basis of former salaries subject to contributions, up to 12 months preceding the last day worked and paid = any periods of work under contract (even suspended) - days’ absence Days of employment A minimum 4 months’ affiliation Affiliation sought within 28 months preceding the end of the employment contract One principle 1 day’s affiliation 1 day’s benefit A limit 730 days Formula Reference salary Number of days of employment in the company DRS = Calculation of the number of days eligible for benefits Calculation of the daily reference salary (DRS) 14ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012
  15. 15. 15 ENCOURAGING AND PROMOTING STAYING IN AND RETURNING TO WORK With arrangements such as Reduced activity or Assistance for the takeover or creation of a company, jobseekers stay in touch with the labour market and thereby increase their chance of returning to sustainable employment.
  16. 16. 16ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 STAYING in touch with the labour market Assistance packages and incentives What is the Return-to-work measure in the event of reduced activity? Benefit recipients have the option of combining remuneration from an activity with unemployment benefits. In fact, jobseekers are aware of the importance of staying in the labour market and acquiring new professional experience. Taking up one or more part-time or short-term jobs, while continuing to be in receipt of benefits, is a springboard to employment and makes it easier to access long-term contracts. AMONG THE INCENTIVE ARRANGEMENTS, REDUCED ACTIVITY AFFECTS ONE IN TWO JOBSEEKERS In order to make their return to work easier, Unemployment Benefit (ARE) beneficiaries can use their benefits in the form of assistance packages awarded according to their specific situation. The three arrangements provided for this purpose are Assistance for the takeover or creation of a company (ARCE) in the form of capital paid in two instalments, the option to combine, under certain conditions, unem- ployment benefits with a salary, and, finally, the Compensatory allowance upon redeployment (ADR) in the event of taking up a job that is less well paid than the previous one. In addition to these arrangements that it finances directly, the Unemployment insurance scheme also contrib- utes to assistance packages that are accessible to all jobseekers, whether compensated by the Unemployment insurance scheme or not. This contribution is made as part of its contribution to the financing of Pôle emploi. This financing, amounting to 10% of contributions to the Un- employment insurance scheme, represents ap- proximately 3 billion Euros per annum. REDUCED ACTIVITY FULFILLS ITS OBJECTIVE OF PROMOTING THE RETURN TO WORK Reduced activity is one of the incentive ar- rangements for the return to work. It makes it possible, under certain conditions, to combine partially in a given month income from an activ- ity taken up or retained with benefits in respect of the activity lost. In 2012, Unédic conducted a survey of a sample of 2,000 people who were in reduced activity in the 2nd quarter of 2011. Over this period, 1.1 million benefit recipients on average were affected by reducedactivity.51.7%ofthesebenefitrecipients effectively benefited from the partial combina- tion of a salary with benefits. Those who were not in receipt of benefits worked more than 110 hours or received an income in excess of 70% of the income they earned in the job that they lost. Benefit recipients who carried out a reduced activity in 2011 stand out from all the Unemploy- ment insurance benefit recipients. Women are more strongly represented, particularly those aged 50 or over. More often taken on following the loss of a fixed-term contract or at the end of a temporary assignment, the benefit recipi- ents who had carried out a reduced activity in 2011 also have slightly fewer qualifications. The survey also highlights the effects on the return to sustainable employment. Thus, a few months after the period of reduced activity, 61.4% of benefit recipients were in work. Jobs usually de- scribed as “sustainable” (permanent contract or fixed-term contract of 6 months or more) repre- sent 49.8% of the jobs found by the jobseekers in reduced activity and 75.4% of those found by people who were no longer jobseekers.
  17. 17. 17 % of people in reduced activity found out about the combination option at the time they exercised it 58.8 One in 2 people in reduced activity compensated by the Unemployment insurance scheme PATHWAY OF THOSE SURVEYED: FROM THE JOB HELD BEFORE THEIR PERIOD OF REDUCED ACTIVITY TO THE JOB FOUND AFTER THE REDUCED ACTIVITY Source: Unédic (“Reduced activity” survey of February 2012); National file of benefit recipients (Unédic/Pôle emploi). Field: individuals who were jobseekers compensated by the Unemployment in- surance scheme and in reduced activity during the 2nd half of 2011, and who were in work (excluding reduced activity) in February 2012. Excluding nurs- ery school assistants and those individuals surveyed who hold another type of contract. THE JOBS OF INDIVIDUALS LEAVING REDUCED ACTIVITY WERE COMPARED WITH THE JOBS THEY LOST WHICH HAD GIVEN RISE TO THE RIGHT TO BENEFITS FROM THE 2ND QUARTER OF 2011. ON THE ONE HAND, 65% OF THOSE INDIVIDUALS WHO USED TO HOLD A PERMANENT CONTRACT FOUND ANOTH- ER PERMANENT CONTRACT AFTER THEIR REDUCED ACTIV- ITY. THE REMAINING 35% HOLD A FIXED-TERM CONTRACT (26%) OR A TEMPORARY CONTRACT (9%). ON THE OTHER HAND, 43% OF THOSE INDIVIDUALS PREVI- OUSLY IN A TEMPORARY POST HELD A PERMANENT CON- TRACT AT THE TIME OF THE SURVEY. 26% 35% 22% 9% 43% 9% Fixed-term contract 56% Temporary 35% 65% Permanent contract In 2011, benefit recipients on average were affect- ed by reduced activity. 51.7% of them bene- fited from the combination of a salary with benefits. REDUCED ACTIVITY LARGELY PERCEIVED AS USEFUL OF JOBSEEKERS QUESTIONED think that reduced activity gave them at least one advantage, primarily proximity to the labour market and the acquisition of professional experience. POSITIVE MOTIVATIONS FOR CARRYING OUT A REDUCED ACTIVITY 62.0% of benefit recipients who carried out a reduced activity think of this job as a means of developing their professional experience. RATHER ENCOURAGING EFFECTS IN TERMS OF A SUSTAINABLE RETURN TO WORK 61.4% OF THOSE SURVEYED ARE IN WORK OF WHICH ARE NO LONGER JOBSEEKERS 26.3% MILLION1.1 % 96.7
  18. 18. 18ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 PACKAGES TO ASSIST IN THE RETURN TO WORK SUPPLEMENT BENEFITS BY PROVIDING INCENTIVES TO RETURN TO WORK. WITHIN THIS FRAMEWORK, IMPROVED JOB SECURITY CONTRACT (CSP) FOR EMPLOYEES MADE REDUNDANT FOR ECONOMIC REASONS AND ASSISTANCE FOR THE TAKEOVER OR CREATION OF A COMPANY (ARCE) ARE THE SUBJECT OF SIGNIFICANT INVESTMENTS. ONE YEAR OF THE IMPROVED JOB SECURITY CONTRACT (CSP) The purpose of the Improved job security con- tract in favour of employees made redundant for economic reasons is to allow for the rede- ployment of these employees. The CSP concerns employees affected by a redundancy procedure for economic reasons undertaken between 1 September 2011 and 31 December 2013. The arrangement makes it possible to benefit, for 12 months, from a num- ber of measures aimed at speeding up the re- turn to work: individual and customised moni- toring by a specific mentor, benefits (improved job security benefit) with no waiting period or deferred benefits, and social protection. Companies that must offer the CSP to their employees for whom they are considering a redundancy procedure for economic reasons, are companies with fewer than 1,000 employ- ees and companies in compulsory receivership or liquidation, irrespective of the number of their employees. As for companies with more than 1,000 employees, they must implement the provisions of redeployment leave. LASSISTANCE FOR THE TAKEOVER OR CREATION OF A COMPANY: RELEVANT TO COMBAT UNEMPLOYMENT Assistance for the takeover or creation of a company is a simple arrangement that enables any benefit recipient eligible for ACCRE to re- ceive half of the unemployment benefits still available to him/her in 2 instalments spaced 6 months apart (€11,000 on average). If the ac- tivity of the created company stops, the job- seeker may subsequently receive the remain- der of his/her benefits if he/she re-registers with Pôle emploi. This method of activation of unemployment benefits developed strongly between 2006 and 2010, from 19,000 beneficiaries to almost 82,000. The corresponding amounts increased from 112 million Euros to almost 1 billion over the same period. WHO ARE THE BENEFICIARIES OF ARCE? 70% of beneficiaries are men. 62% of them are between 30 and 50. Their share is higher than the average for unemployed people in receipt of benefits in the Southern regions (Rhône- Alpes, PACA, Midi-Pyrénées, Aquitaine). The majority are unemployed as a result of a redun- dancy or a contractual termination. Out of the 56,000 beneficiaries who received the first payment in 2007, 96% received the second 6 months later. In total, since then, only 19% have re-registered. Therefore, 3/4 of those who received the first payment are no longer registered as unemployed. In 2013, a survey was conducted with 2,000 beneficiaries to learn about what has become of them and their perception of the arrangement. ENCOURAGING the return to work Assistance packages and incentives
  19. 19. 80,260 CSP beneficiaries on average in 2012 1.2 billion Euros paid in respect of the CSP 0.44 billion Euros in contributions paid by employers On average, in 2012, new CSP/CRP/CTP claimants represented almost 54% of new benefit claimants after redundancy for economic reasons. THE IMPROVED JOB SECURITY CONTRACT (CSP) IN 2012 ASSISTANCE FOR THE TAKEOVER OR CREATION OF A COMPANY BENEFICIARIES OF ARCE BY AGE GROUP (%) Field: beneficiaries of ARCE in receipt of ARCE for the first time in 2012. Source: National file of benefit recipients, Unédic calculations. BENEFICIARIES OF ARCE BY SEX 29.0% 71.0%10.6 9.3 24 .818 .7 36.6  FROM 25 TO 29 UNDER 25 OVER 50 FROM 30 TO 39 FROM 40 TO 49 BENEFICIARIES OF ARCE BY LEVEL OF GENERAL TRAINING ACHIEVED (%) Field: benefit recipients in receipt of ARCE for the first time. Source: National file of benefit recipients, Unédic calculations. PRIMARY SCHOOL LEAVING CERTIFICATE (CEP) LEVEL 0.8% ADVANCED DIPLOMA LEVEL (elementary, French certificate of general education, BEPC) 4.5% CAP/BEP LEVEL 37.8% BACCALAUREAT LEVEL (general, technological or vocational, advanced diploma) 22.0% BAC+2 LEVEL (DUT, BTS, primary teacher, DEUG, paramedical or social diplomas) 16.3% ≥ BAC+3 LEVEL (degree, grandes écoles (prestigious French educational establishments) 16.7% NO QUALIFICATION 1.9% € 857.0MILLION paid in Assistance for the takeover or creation of a company. The amount of ARCE is equal to 45% of the remaining amount of entitlements. 66,215BENEFICIARIES OF ARCE IN 2012 19
  20. 20. 20ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 Source: National file of benefit recipients, Unédic calculations. Field: Whole of France AMONG THE NEW CLAIMANTS: SHARE OF CSP IN ALL THOSE MADE REDUNDANT FOR ECONOMIC REASONS The Assistance packages to return to work are mobilised as part of the Personalised Plan for Accessing Employment (PPAE).The plan is put in place after the assessment of the prospects for redeployment of jobseekers in receipt of benefits. ENHANCED SUPPORT MEASURES Jan.-12 Feb.-12 Mar.-12 Apr.-12 May-12 June-12 July-12 Aug.-12 Sept.-12 Oct.-12 Nov.-12 Dec.-12 0 5,000 10,000 15,000 20,000 CRPCSPARE The national interprofessional agreement of 11 July 2011 has put in place, since 15 March 2012, an exceptional financial sup- port arrangement for young people who have been recruited. This arrangement is aimed at young people under 26 entering employment (CDI, CDD, apprenticeship contracts, professional, CUI/CUE) and its aim is to help them cover the costs they face before receiving their first pay packet. This assistance, financed by the Unemployment insurance scheme,is implemented by Pôle emploi, the Missions locales (access points for employment and social services) and APEC. SUPPORT TO STAY IN WORK FOR THE UNDER 26’S TRAINING UNEMPLOYMENT BENEFIT (AREF) COMPENSATORY ALLOWANCE UPON REDEPLOYMENT (ADR) In 2012, 6 months after the training programmes re- quired by Pôle emploi, 31.3% of outgoing jobseekers had found a sustainable job. The objective set for this year at Pôle emploi in the tripartite agreement is 38.6%. When a beneficiary of ARE accepts a salaried job whose remuneration, for the same working hours, is lower by at least 15% of his/her previous job, the salary difference may be paid to him/her on a monthly basis in the form of an allowance. Unédic pays close attention to the training of jobseekers in order to seek optimal conditions for its efficacy. JOBSEEKERS BENEFIT FROM ADR OVER THE YEAR7,500 50.5 million Euros paid in respect of ADR. Over 2012, approximately 3 out of 4 beneficiaries were 50 or over: • Approximately 1/3 of ADR beneficiaries were between 50 and 54 and almost 35% were in the 55-59 age group. • Beneficiaries of 60 or over represented approximately 4%. JOBSEEKERS BENEFITED FROM TRAINING UNEMPLOYMENT BENEFITS76,300on average every month in 2012, as part of a training programme required by Pôle emploi. spent on the support arrangement of the National interprofessional agreement (ANI) for young people4.4MILLION LONG-TERM REDUCED ACTIVITY 28.3 million Euros paid for long-term reduced activity. Senior citizens were the main beneficiaries of this assis- tance. PAID IN TRAINING UNEMPLOYMENT BENEFITS€ 1 billion €
  21. 21. 21 ENSURING THE FINANCING OF BENEFITS AND ASSISTANCE Unédic guarantees the financing of the Unemployment insurance scheme. In addition to the recovery of contributions, it has recourse to a borrowing programme, in order to guarantee the payment of benefits.
  22. 22. 22ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 SUPPLEMENTING CONTRIBUTIONS COLLECTED WITH MANDATORY LOANS ENABLES UNÉDIC TO GUARANTEE THE COMPENSATION OF JOBSEEKERS CONTRIBUTIONS UP SLIGHTLY IN 2012 Private sector employers, those from the public sector who signed up to the Unemployment insurance scheme and their employees are obliged to pay a contribution to the Unemployment insurance scheme to insure themselves against the risk of job loss. The employers’ rate of contri- bution is 4% and that of employees is 2.4%, i.e. 6.4% in total. They apply to salaries limited to 4 times the Social security upper limit. In 2012, operators collected 32.4 billion Euros for Unédic compared with 31.7 billion Euros in 2011, i.e. a 2% increase. Urssaf agencies are primarily responsible for recovery with 29.3 billion Euros, while other organisations with a geographical or professional competence, such as Pôle emploi, the CCMSA, the CCVRP, the Central Social Security Funds of Monaco and Saint-Pierre et Miquelon or, furthermore, Acoss in respect of specific arrangements, collected 3.1 billion Euros. The contributions finance unemployment benefits (30 bil- lion Euros), the validation of jobseekers’ pension points (1.8 billion Euros) and Return-to-work assistance (973 million Euros). 10% of contributions are used to finance the Pôle emploi budget. The slowdown in the growth of the wage bill and the in- crease in the number of jobseekers to be compensated increased Unédic’s indebtedness by 2.8 billion Euros over the year. Thus, at the end of 2012, net indebtedness stood at 13.8 billion Euros, compared with 11.0 at the end of 2011. SECURING RECOVERY To ensure the recovery of Unemployment insurance con- tributions on behalf of Unédic, Acoss has a security plan linked to its internal auditing and monitoring plan jointly with Unédic. The recommended audits primarily concern the quality of the employers’ administrative file, the qual- ity of the recovery and the detection of anomalies. Rec- ommendations are made to Acoss in terms of combating fraud in order to target certain types of employers who file returns. ADDITIONAL FINANCING THROUGH THE LOAN GUARANTEES THE PAYMENT OF BENEFITS Unédic’s financing requirements are anticipated by the financial break-even point forecasts every quarter. The Board of Directors approved a programme of bond issues for 2012 guaranteed by the State of 7 billion Euros. It is 5 billion for 2013 with a cumulative deficit estimated at 18.5 billion at the end of 2013. The financial break-even point for the coming years shall be defined within the framework of negotiations on the Unemployment insurance convention that must take place before the end of 2013. Since the implementation of the Unemployment insurance scheme in 1958, the social part- ners have thereby regularly adapted the rules relating to Unemployment insurance and guarantee its ability to meet both economic and social needs. GUARANTEEING the payment of benefits Revenue and financing A major project: the Déclaration sociale nominative (identified payroll tax return) (DSN) The Déclaration sociale nominative (identified payroll tax return) is a major project to simplify and standardise company procedures. It is aimed at bringing together, in a single paperless transmission, all the individual social information and data of employees in France for all social protection organisations. It is a significant advantage for companies in terms of administrative and social procedures and declarations. For Unédic, the main challenge consists in ensuring that future declarations secure rights to Unemployment insurance for employees who are going to lose their job. 2012 was given over to preparing the pilot phase launched in 2013 with volunteer companies.The DSN project requires a considerable level of coordination and commitment of all social protection partners. Unédic and Pôle emploi are jointly monitoring the employment aspect of the project.
  23. 23. 23 WAGE BILL AND CONTRIBUTIONS TO THE UNEMPLOYMENT INSURANCE SCHEME Source: Acoss, Pôle emploi, Unédic, Unédic Forecasts 2009 2010 2011 2012 2013 -2 -1 0 1 2 3 4 5 Wage bill Contributions year-on-year in % CHANGE IN CASH BALANCE OF THE UNEMPLOYMENT INSURANCE SCHEME Source: Unédic, Unédic calculations 2013 201420092007 2008 2010 2011 2012 -27 -18 -9 0 9 Balance = Revenue - Expenditure Net banking indebtedness billions of Euros 3.1 billion Euros recovered by the other operators in- cluding Pôle emploi, the CCMSA and Acoss for the specific arrangements. 29.3BILLION RECOVERED BY ACOSS € Account certification challenges Account certification ensures opti- mum transparency for third parties, and particularly for contributors. Account certification is a primary objective for Unédic, which appears before the financial markets to obtain the necessary funding to ensure pay- ment of benefits. In a context of delegation of Unem- ployment insurance tasks to operators (Pôle emploi, Acoss, CCMSA etc.), the terms for obtaining this certification have been significantly altered. Cer- tification requires an efficient collab- oration between the organisations to define Unédic’s needs, but also those of the certifiers, the French Accounting Court and the Auditors, to provide the assurances required for the expression of the auditors. In this regard, the spe- cific work carried out with Acoss and Urssaf in 2012 should help promote continued certification of their incom- ings and outgoings for the coming years. The 12 billion euro EMTN programme has been increased to 14 billion Euros. It enables Unédic to maintain the responsiveness required for its future bond issues. Five issues carried out in February,April and May 2012 made it possible to raise 6.5 billion Euros with maturities of 3 to 7 years. THE BORROWING PROGRAMME
  24. 24. WHO ARE THE RECIPIENTS OF UNEMPLOYMENT INSURANCE? THE POPULATION OF JOBSEEKERS IN RECEIPT OF BENEFITS REPRESENTS A DIVERSITY OF CIRCUM- STANCES AND REFLECTS THE CHANGE IN THE LA- BOUR MARKET. IN FACT, THIS MARKET HAS CHANGED BEYOND MEASURE IN RECENT YEARS WITH A CON- SIDERABLE INCREASE IN SHORT-TERM AND PART-TIME CONTRACTS AND REDUCED-ACTIVITY. THE PROFILE OF BENEFIT RECIPIENTS REFLECTS THIS GROWING DUALITY IN THE LABOUR MARKET BE- TWEEN SHORT AND LONG-TERM CONTRACTS. 24ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012 1 out of 2 jobseekers registers with Pôle emploi after the termination of a fixed-term contract (CDD) or a temporary assignment. DISTRIBUTION OF BENEFIT RECIPIENTS BY LEVEL OF QUALIFICATIONS (%) Source: National file of benefit recipients (Unédic/Pôle emploi). Outstanding benefits as at 31/12/2011 observed with 6 months of decline. Field: benefit recipients compensated by the Unemployment insurance scheme, whole of France. RATIO OF NET COMPENSATION TO NET SALARY BY REFERENCE SALARY GROUP Source: National file of benefit recipients (Unédic/Pôle emploi). Outstanding benefits as at 31/12/2011 observed with 6 months of decline. Field: benefit recipients compensated by the Unemployment insurance scheme, whole of France. Note for the reader: 5% of benefit recipients receive less than 500 Euros and have a ratio of net compensation to net salary of 92%. 0% 20% 40% 60% 80% 100% Number of beneficiaries Compensation/reference salary ratio Less than € 500 from € 500 to € 750 from € 750 to € 1,000 from € 1,000 to € 1,250 from €1,250 to €1,500 from € 1,500 to € 1,750 from € 1,750 to € 2,000 from € 2,000 to € 2,250 from € 2,250 to € 2,500 from € 2,750 to € 3,000 from € 2,500 to € 2,750 from € 3,000 to € 3,250 from € 3,250 to € 3,500 from € 3,500 to € 3,750 from € 3,750 to € 4,000 M ore than € 4,000Average ratio 69% in thousands 0 100 200 300 400 500 600 BAC+5 or more BAC+3 and +4 BAC +2 BAC CAP, BEP Secondary school BAC 18.6% 41.5% 5.3% 5.5% 10.9% 18.3% 18% 5.4% 7.8% 13.6% 23%32.2% TOTAL 18.3% 5.3% 6.6% 12.2% 20.6% 36.9%
  25. 25. 25 GUARANTEEING THE QUALITY OF THE SERVICE PROVIDED Unédic guarantees the performance of the Unemployment insurance scheme and the managerial autonomy of the social partners. It offers them decision-making support and facilitates collective bargaining.
  26. 26. Since 1958, the law has entrusted the social partners with the responsibility of manag- ing the Unemployment insurance scheme in France. They play two separate but com- plementary roles. Firstly, the social partners (Medef, CGPME and UPA for employers, and CFDT, CFE-CGC, CFTC, CGT and CGT-FO for employees) have the responsibility of de- termining through negotiation the amount of contributions, the rules of compensation (eligibility conditions, amount and duration of the payment of benefits) and the type of different assistance packages for benefit re- cipients. Secondly, the responsibility of their representatives on the Unédic Board of Direc- tors is to manage the Unemployment insur- ance scheme, that is to say, to ensure the re- covery of contributions from companies and the compensation of jobseekers according to the rules defined during the negotiation. The Unédic Board of Directors is appointed for two years. It is made up of an “employees” board and an “employers” board each com- prising 25 members. This Board of Directors elects the Joint management system board, made up of 10 members, which ensures the operational functioning of Unédic. The latter is an independent association under the law of 1901, and therefore an organisation under pri- vate law. Its mission is to ensure that the Un- employment insurance convention is applied and to manage the financing of the scheme. FOUR MISSIONS FOR UNÉDIC Unédic lays down the unemployment benefit rules decided by the social partners, oversees their implementation, produces the forecasts required to manage them, and the studies to supplement the joint debate and continue to develop the Unemployment insurance sys- tem. Unédic ensures the benefits are financed under the best possible conditions. It is positioned at the centre of a network of operators: in terms of contributions, it mainly entrusts Urssaf agencies (managed nationally by Acoss) with collection, which fulfill the re- covery mission on its behalf. In terms of com- pensating jobseekers, it delegates to Pôle emploi the mission of calculating and paying the benefits according to the rules of the Un- employment insurance convention. Unédic carries out its missions for the performance of the Unemployment insurance scheme, for the benefit of employees, companies and job- seekers, by ensuring the operators apply the rules and provisions decided on by the social partners at the time of negotiation in direct cooperation with them. UNÉDIC ENHANCES THE TRANSPARENCY OF GOVERNANCE AND MANAGEMENT On 17 February 2012, the social partners en- tered into a National interprofessional agree- ment (ANI) on the modernisation of the joint management system. This agreement reas- serts the aim of joint management: to guar- antee the quality of the service rendered to the end beneficiaries and to facilitate collec- tive bargaining between the social partners. Some of the measures created include: an audit and account preparation committee, a committee responsible for appointing the senior executives of Unédic and setting their remuneration, public summaries of the main decisions of the Unédic Board, the quarterly presentation to the Board of facts and figures. It should be noted that since 2013 Unédic has assumed responsibility for the techni- cal and legal training of its newly appointed administrators. Joint management ORGANISING a balanced and concerted management of the Unemployment insurance scheme 26ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012
  27. 27. 27 UNÉDIC MEASURES THE IMPACTS AND EFFECTIVENESS OF THE UNEMPLOYMENT INSURANCE ARRANGEMENTS AND SHARES ITS INFORMED ANALYSES WITH STAKEHOLDERS IN EMPLOYMENT. UNÉDIC CONTRIBUTES TO THE LABOUR AND EMPLOYMENT MARKET STAKEHOLDERS’ DEBATE Unédic is in a position to enlighten all stakehold- ers and observers about the changes in the la- bourmarket.Throughitsinitiativesandthestud- ies that it conducts, Unédic contributes to the virtuous circle of improving the Unemployment insurance scheme, by explaining the meaning of its initiatives and by regularly sharing its in- formation on the system’s performance. During 2012, Unédic responded to requests for infor- mation from the National Assembly, the Senate, the Economic and Social Council, the French Accounting Court, the OECD and numerous French and foreign institutional and profession- al stakeholders. In total, more than 70 meetings and hearings took place on issues as varied as competitiveness and investment, vocational training and youth employment. A PARTNERSHIP WITH THE CHAIR OF IMPROVED CAREER PATH SECURITY The Unédic Board signed a partnership with the Chair of Improved Career Path Security on 24 October 2012. Made up of a multi-discipli- nary team of researchers from Sciences-Po, Ensae and CREST, this chair carries out work in cooperation with the world of research on the themes of work and employment. Through this partnership, Unédic wants to get involved in original long-term research and have syntheses on themes linked to Unemploy- ment insurance and changes in the labour mar- ket. It is also an opportunity to offer the com- munity of researchers subjects closely related to Unédic’s concerns such as the improvement of knowledge and the analysis of duality in the world of work. UNÉDIC and its environment Providing and sharing insights into employment and unemployment In 2012, Unédic conducted several studies and shared the results with partners, experts, parliamentarians and journalists. Reduced activity was a significant study theme in 2012 insofar as it affects almost one in two jobseekers. Unédic would like to devote a survey to this ever-increasing phenomenon. The social partners’ objective was achieved: the combination option enables jobseekers who carry out a reduced activity to better redeploy themselves in employment than the average jobseeker. Moreover, a European comparison of unemployment insurance systems highlights the differences between 12 countries in terms of access to benefits, duration, amount and method of calculating entitlements.While 4 months’ work is required in France in order to receive benefits, Luxembourg and The Netherlands demand 6 and several other States 12. The duration of benefits can reach 38 months in The Netherlands, 24 months in Denmark, between 24 and 36 months in France and a maximum of 12 months in Italy and Ireland. All countries impose a cap on the amount of benefits. Three mornings with the Association of Social Infor- mation Journalists (Ajis) also made it possible to discuss these studies and the record of Gaby Bonnand and short-time working in France. The results of these studies are available on unedic.fr.
  28. 28. The unedic.fr website has been completely overhauled in or- der to offer reference sources on Unemployment insurance in France. It allows easy access to Unédic’s resources and expert reports. Thus, since September 2012, the website has had an enhanced design to make it easier to look for and access information in different formats. It offers swift access to Unemployment insurance conventions, agreements and circulars, to financial forecasts and European comparisons. It offers educational formats: animated graphics, key fig- ures, videos, computer graphics and exportable publica- tions. The press section also plays host to news, a diary, me- dia resources and files also available on Twitter, Google+, Vimeo and YouTube. UNEDIC.FR,A WEBSITE DEDICATED TO INFORMATION ON UNEMPLOYMENT INSURANCE THE UNÉDIC BOARD IS RESPONSIBLE FOR MANAGING THE UNEMPLOYMENT INSURANCE SCHEME THE UNÉDIC BOARD Since February 2012, the Board, appointed by the Board of Directors, has been presided over by Mr Jean-François Pilliard for Medef. Ms Pa- tricia Ferrand, CFDT, is the Vice-President. The presidency alternates every two years between an employers’ representative and an employees’ representative. Made up of 10 members drawn equallyfromemployers(Medef,CGPMEandUPA) and employee trade unions (CFDT, CGT, CGT-FO, CFTC, CFE-CGC), it meets every month. At the end of each meeting, a public summary has been posted online on unedic.fr since February 2013. The Unédic Board is responsible for managing the Unemployment insurance scheme: it makes ASSESSOR DOMINIQUE TELLIER (MEDEF) TREASURER MARIE-­FRANÇOISE LEFLON (CFE-­CGC) ASSISTANT TREASURER PATRICK LIEBUS (UPA) STATE-APPOINTED AUDITOR ALAIN CASANOVA ASSESSOR STÉPHANE LARDY (CGT-FO) 3RD VICE-PRESIDENT YVES RAZZOLI (CFTC) 28ANNUAL REPORT – UNEMPLOYMENT INSURANCE in 2012
  29. 29. In February 2012, a round table presided over by Mr Gaby Bonnand, Unédic President at the time, made it possible to compare the viewpoints of a number of disciplines and sever- al European countries on unemployment benefits.A morning during which the participants went over the last ten years of change in unemployment benefits in France: creation of the Return-to-work Assistance Plan (PARE), implementation of the option to combine an income and unemployment benefits (reduced activity), launch of Assistance for the takeover or creation of a company and support arrangements for people made redundant for economic reasons. Didier Demazière,sociologist,David Grubb,OECD economist, and Philippe Scherrer, assistant director at Darés, set out these changes from an economic, statistical and sociological perspective. It was also an opportunity to draw comparisons with Belgium, Germany, the Netherlands and Great Britain over the last ten years in terms of entitlements, changes and the role of social partners in these benefit schemes. The full report on these discussions is online at unedic.fr. COMPARATIVE VIEWS ON UNEMPLOYMENT BENEFIT IN EUROPE all the decisions required for the application of the Unemployment insurance convention and the functioning of Unédic. It exercises any pow- ers delegated to it by the Board of Directors, particularly to ensure the financing of the Un- employment insurance scheme. It appoints the Managing Director. The State-appointed Auditor participates in the Board every month. His mission is to provide the link with the Ministry of Finance, to report Unédic’s decisions to it and to sit in an advisory capacity on the Board of Di- rectors and the Board. PRESIDENT JEAN-­FRANÇOIS PILLIARD (MEDEF) VICE-­PRESIDENTE PATRICIA FERRAND (CFDT) ASSESSOR BENOÎT ROGER-­ VASSELIN (MEDEF) 2ND VICE-PRESIDENT GENEVIÈVE ROY (CGPME) ASSESSOR ÉRIC AUBIN (CGT) 29
  30. 30. GLOSSARY UNEMPLOYMENT INSURANCE Mandatory insurance scheme against invo- luntary job loss for private and public (under certain conditions) sector employees, the management of which is entrusted to social partners. ACOSS Central Agency of Social Security Organisa- tions, Urssaf (Social Security Contribution Collection Agency). REDUCED ACTIVITY Arrangement enabling a jobseeker to com- bine benefits and remunerations under certain conditions, while continuing to look for work. ADR Compensatory allowance upon redeploy- ment: assistance granted to jobseekers over 50, or who have been in receiving benefits for at least a year, who take up a job that is less well-paid than their previous job by at least 15% for equivalent working hours. AGS Association for the Management of the Em- ployee Debt Guarantee scheme. APLD Long-term reduced activity: arrangement that enables employees to keep their job and 75% of their pay in case of a reduction in work due to economic difficulties. This short-time wor- king measure is financed by the Unemploy- ment insurance scheme and the State. APPENDIX 4 Appendix 4 to the convention on Unemploy- ment insurance includes the provisions on Re- turn-to-work assistance and unemployment benefits for temporary employees from tem- porary work companies and casual workers (with no distinction in the type of activity). APPENDICES 8 AND 10 Appendices 8 and 10 to the Unemployment in- surance convention include the provisions on Return-to-work assistance and unemployment benefits for sound recording, cinematographic and audiovisual production, radio, broadcasting andentertainmentworkersandtechnicians,and performers. ANI The national interprofessional agreements stemfromthenegotiationofthesocialpartners representing employers and employees. The convention on Unemployment insurance is generally preceded by an ANI that sets out the main guidelines (ANI of 25 March 2011 on unemployment benefits). ARCE Assistance for jobseekers taking over or crea- ting a company, in the form of two instalments of a portion of the Unemployment insurance benefits. The allocation of this assistance in the form of capital is subject to obtaining State assistance for unemployed people wishing to create or take over a company (ACCRE). ARE Unemployment benefit is the allowance pro- vided by the Unemployment insurance sche- me. It is granted to employees affiliated to the Unemployment insurance scheme who can furnish proof of a minimum duration of acti- vity prior to the involuntary loss of their job. The convention on Unemployment insurance in force sets this duration at 122 days (4 mon- ths) during the last 28 months, for the under 50s. AREF Unemployment benefit paid to the bene- fit recipient following a training programme provided for by his/her Personalised Plan for Accessing Employment (PPAE). Its amount is that of the ARE under ordinary law, but may not be lower than a level set by the general regulations (20.22 Euros as at 1st July 2012). The incidences of suspension of payment are identical to those of the ARE, and its payment also terminates at the end of the training pro- gramme or in the event of suspension of this training programme lasting longer than 15 days (return to ARE under ordinary law). The unjus- tified abandonment of training shall give rise to an assessment by Pôle emploi. ASP Improved job security benefit is paid to bene- ficiaries of the Improved job security contract (CSP). It represents 80% of the previous gross salary for employees who have two years’ se- niority. ASS The Special solidarity allowance is aimed at jobseekers who have exhausted their entit- lements to ARE within the framework of the Unemployment insurance scheme who meet specific conditions. This arrangement is fi- nanced by the State. JOBSEEKER CATEGORIES • Category A: jobseekers required to engage in positive job searches, unemployed. • Category B: jobseekers required to engage in positive job searches, carrying out a short- term reduced activity (78 hours). • Category C: jobseekers required to engage in positive job searches, carrying out a long-term reduced activity (78 hours). • Category D: jobseekers not required to en- gage in positive job searches (due to an in- ternship, a training programme, an illness, etc.), unemployed. • jobseekers not required to engage in positive job searches, in employment (for example: beneficiaries of supported contracts). CCMSA The Central Fund for the Agricultural Mutual Insurance Scheme is in charge of managing social protection for the agricultural sector. CCVRP Organisation for the collection of Social Se- curity and Unemployment insurance contribu- tions for sales representatives. CONVENTION ON UNEMPLOYMENT INSURANCE Stemming from the negotiation of the social partners, the convention sets forth the condi- tions for paying benefits to jobseekers and the amount of employers’ and employees’ contri- butions. STATE/UNÉDIC/PÔLE EMPLOI TRIPARTITE AGREEMENT The tripartite agreement sets the budget and the operational objectives of Pôle emploi for three years according to the guidelines set for- th by Unédic and the State, co-financiers of Pôle emploi. CSP In force since 1 September 2011, the Improved job security contract is an arrangement co-fi- nanced by the State and Unédic intended for employees made redundant for economic rea- sons from companies with fewer than 1,000 employees (or companies of any size placed in compulsory liquidation). It replaces the CRP and the CTP and has merged both these ar- rangements. DEFM Month-end jobseekers. Individual registered with Pôle emploi and having an outstanding claim on the last day of the month. DRE The job search exemption, repealed in 2012, exempted beneficiaries of ARE, of ASS aged over 60, early retired persons and beneficiaries of equivalent retirement benefit (AER) from the obligation to look for work. IPR The Joint regional body convenes at regional level, with the social partners representing the employers and the employees. This body pro- vides guidance on Pôle emploi’s local activity, and is competent to rule on certain individual cases of jobseekers and employers. PPAE The Personalised Plan for Accessing Em- ployment is drawn up by Pôle emploi further to registration as a jobseeker. It aims to set out a pathway for a return to work adapted to the jobseeker’s situation, particularly in terms of the distance from employment, training, qualifications, knowledge or acquired skills etc. RSA Solidarity regime benefit intended for anyone residing in France on a stable and actual ba- sis, whose household has resources beneath a certain income level. Consequently, it is ai- med at bringing household resources to the level of a “guaranteed income”. It may either make up for a lack of income from activity (base RSA), or supplement an income from activity when the employee does not draw a “living wage” from his/her work (cap RSA or activity RSA). Its amount depends on the composition and the resources of the benefi- ciary’s household. 30
  31. 31. Unédic - 2012 Annual Report - June 2013 - ISSN: 0997-1351. Editorial design and graphics by 4, rue Traversière - 75012 Paris Telephone : +33 (0)1 44 87 64 00 unedic.fr twitter.com/unedic