Short-time working means those organisations that are forced to reduce or even suspend their business even after putting in place measures to maintain employment (such as teleworking, holiday leave, etc.).<\/p>\r\n\r\n\r\n\r\n
It is important to note that employees on \u201cfixed number of days\u201d contracts and whose hours are reduced, are excluded from short-time working provisions, unless their organisation is totally or partially shut down. If the organisation is closed, for at least a half-day, then employees on \u201cfixed number of days\u201d contracts become eligible for \u201clay-off\u201d benefits.<\/p>\r\n\r\n\r\n\r\n
Under normal circumstances, an application relating to short-time working must be accompanied by a copy of the prior notice given to the works council (Comit\u00e9 Social et \u00c9conomique – CSE). However, according to information from the French employment ministry (Minist\u00e8re du travail) and in view of the time needed to consult the CSE, recourse to short-time working is possible as a precautionary measure without waiting for the opinion of the CSE. An application for authorisation of short-time working should be addressed to the DIRECCTE (government agency responsible, inter alia, for employment matters) in the d\u00e9partment where the establishment is located.<\/p>\r\n\r\n\r\n\r\n
For the period of short-time working, the employer must pay staff compensation amounting to 70% of their gross wage, per hour not worked. This represents 84% of their net hourly wage. This rule is not expected to change. Hourly compensation is increased to 100% of the employee\u2019s previous net wage if training sessions are put in place for the hours not worked.<\/p>\r\n\r\n\r\n\r\n
\u201cLay-off\u201d compensation paid to staff is subject to tax but is not deemed to be remuneration. It is exempt from Social Security contributions and payroll tax (provided for in article L. 5122-4 of the Employment Code – Code du Travail)<\/p>\r\n\r\n\r\n\r\n