On June the 6th, Prime Minister Edouard Philippe presented the government’s program to renovate the French social model. This program of work includes six social reforms to be carried out during the first 18 months of President Emmanuel Macron’s five-year mandate. Among these government priorities is apprenticeship reform which is scheduled to take place in September.
Reform of the labour code
The reform of the Labor Code will focus on three points: simplifying and strengthening the social and economic dialogue and its principal players, securing labour relations and the new agreements between industry and companies.
The schedules and orders for this reform will be published before the end of this summer.
Transferring health and unemployment insurance contributions to the CSG
As of January the 1st, 2018, a 1.7 point increase in the rate of the CSG (generalized social contribution) will be applied to compensate for the abolition of health insurance and unemployment insurance contributions. Employees in the private sector are the main beneficiaries of this reform, to the detriment of those retirees who are liable to the CSG (60%) and the beneficiaries of supplementary income.
Increasing unemployment insurance at the national level
The reform initiated by Emmanuel Macron provides for the opening of unemployment insurance to employees who resign (every 5 years) and to the self-employed. As the management of Unédic is currently entrusted to social partners, this reform is designed to restore control to the State. This reform is expected to be implemented for summer 2018.
Enhanced vocational training
This governmental reform is designed to serve as an effective reinforcement of existing training schemes within the framework of evolving trades.
The planned investment plan for young people, employees and job seekers will be operational from the beginning of 2018.
In addition, the implementation of the individualized and comprehensive digital application of the CPF (personal training account) is set to be unveiled in the summer of 2018.
This reform is mainly focused on the fight against youth unemployment with the government pledging a massive development of the offers of business apprenticeships aimed at young people under 25 years of age.
The gradual implementation of this reform is planned for summer 2018.
Launch of a new point-based pension system
This reforms is designed to deliver a universal point system that unifies the various existing regimes. Thanks to this system, each contributor will benefit from the same rights, identical for all beneficiaries with each euro contributed. The renovation of this system is planned for 2018.