On November 14, a pivotal agreement was reached between social partners regarding senior employment and unemployment insurance. Key features include enhanced social dialogue on senior employment, easier access to progressive retirement starting at age 60, the introduction of a trial ‘Experience Enhancement Contract’ for job seekers over 60, and strengthened professional interviews focusing on employment conditions for older workers. Concerns were raised about the balance of the agreement, particularly from employer representatives.
Key Highlights of the National Interprofessional Agreement (ANI) on Senior Employment
On November 14, social partners, including employers and various unions, finalized a significant agreement concerning unemployment insurance and the employment of seniors. The representatives expressed satisfaction with the swift negotiations, with Medef’s Hubert Mongon noting a ‘majority of favorable opinions’ on the consensus reached, albeit with some reservations. However, concerns arose from the employer perspective, particularly with Eric Chevée from CPME, who criticized the agreement on senior employment as ‘unbalanced’ while viewing the agreement on unemployment insurance as acceptable.
The ANI focuses on four essential aspects that aim to improve the employment landscape for seniors:
Enhanced Social Dialogue
The agreement mandates that the employment of seniors becomes a central topic for negotiation within both sectors and companies. For organizations with a workforce of at least 300 employees, discussions will occur every three years to address the employment, working conditions, and overall well-being of older employees. Smaller companies will have the option to engage in negotiations voluntarily.
Facilitating Progressive Retirement
Aiming to make progressive retirement more accessible and appealing, the agreement outlines that employees will now be able to access this option starting at age 60, even as the legal retirement age gradually shifts to 64. Currently, employees can only utilize progressive retirement two years prior to reaching the legal retirement age. Employers must provide a written and justified explanation for any refusal based on incompatible working hours. Employees must have contributed to their retirement for at least 150 quarters to qualify for this system.
Progressive retirement allows employees to receive a portion of their retirement benefits while continuing to work in a reduced capacity, thereby enhancing their retirement rights.
Introduction of the Senior Contract
The agreement introduces the ‘Experience Enhancement Contract’ on a trial basis for five years, specifically designed for job seekers aged 60 and above who are registered with France Travail. This contract is not applicable to those who have held a permanent position in the same company or group within the preceding six months. When entering into this contract, job seekers must disclose their anticipated retirement date.
This new contract adheres to the standard regulations governing permanent contracts while incorporating specific provisions regarding retirement. Employers are permitted to initiate retirement procedures once the employee meets the criteria for full retirement benefits. Upon retirement, employers will be exempt from the standard 30% contribution on the retirement indemnity amount.
Strengthening Professional Interviews
The professional interview, which takes place in the year leading up to or following an employee’s 45th birthday, is set to be reinforced. Additionally, interviews conducted within two years before an employee turns 60 will focus on discussing employment conditions and end-of-career adjustments, including options for progressive retirement.