Unédic - Unemployement Insurance 2011 : annual report

A N N U A L R E P O R T

UNEMPLOYMENT

2 11INSURANCE

2| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

EDITORIAL 3

KEY EVENTS 2011 4

1. UNEDIC KEEPS PACE WITH CHANGES IN THE ECONOMIC SITUATION 62011: the stifled recovery 8

2. JOINT MANAGEMENT CONSOLIDATES ITS ROLE 10

Unemployment insurance benefit 12

Transfer of recovery of employers’ contributions to Acoss 14

Improved arrangements for jobseekers 16

The return-to-work support measures are maintained 18

Unemployment insurance: a continuously improving system 20

New objectives for Pôle emploi (job centre) 22

The CSP replaces the CRP and the CTP 24

3. UNEDIC PLAYS AN ACTIVE ROLE IN THE EVOLUTIONOF THE PUBLIC EMPLOYMENT SERVICE 26Responsibility, autonomy and transparency of joint management 28

GLOSSAry 30

EDIT

ORIA

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2011was a year full of contrasts for the Unemployment insurance scheme due to changes in the eco-nomic situation. The good performance of the first half of the year made it possible to restore finan-cial equilibrium due to the strong jobsmarket and the stabilisation of unemployment. But this trenddid not last beyond summer. 2011 was also a valuable and constructive year with the agreement ofMarch 2011 giving rise to the new convention on Unemployment insurance, an agreement in favourof youth employment, the decision by the board of directors to increase the benefits paid to jobseek-ers, the creation of the improved job security contract (CSP), etc. The social partners also set out theirexpectations with regard to Pôle emploi, primarily to ensure that jobseekers and companies benefitfrom a service adapted to their situation.

Unédic set out to ensure that all of these decisions and guidelines were implemented and guar-antee the quality of the service provided by the Unemployment insurance system through Pôleemploi, the Social Security Contribution Collection Agencies (Urssaf) and other recovery operators.This resulted, in particular, in the successful negotiation of the new tripartite agreement which bindsUnédic, the State and Pôle emploi, in Acoss assuming responsibility for the recovery of contributions,which until then had been handled by Pôle emploi. All these events have one thing in common: theyhighlight the ability of the social partners and the Unemployment insurance scheme to adapt to ourcountry’s social and economic changes.

At the heart of the Unemployment insurance scheme, Unédic continues to act to ensure its effic-iency. It prescribes the unemployment benefit rules decided by the social partners, supervises theirimplementation, produces the studies and forecasts required to stimulate joint consideration andcontinues to develop the Unemployment insurance system. Unédic also finances it under the bestpossible conditions. It conducts itself in a completely transparent manner and according to the rulesof the agreement on joint management. Unédic intends to be open to its environment and to listento its public and those who are tackling unemployment, dedicated to the social partners.

As President of Unédic since January 2012, I intend to consolidate the achievements of recent yearsin order to strengthen the role of the social partners as part of a rigorous approach to joint manage-ment. I am keen to review and give clear expression to the arrangements that it creates, whilecontinuing to play an active role in changes in the labour market.

Unédic will continue working to enhance the performance of the Unemployment insurance scheme,for the benefit of employees, companies and jobseekers, by ensuring that the operators apply therules and provisions chosen by the social partners in close collaboration with them.

Jean-François PilliardPresident of Unédic

A CONSTRUCTIVE YEAR forJOINT MANAGEMENT OF THEUNEMPLOYMENT INSURANCE SCHEME

ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 3


KEY EVENTS

The recoveryof Unemploymentinsurancecontributionsfrom 1.6millionemployers is nowthe responsibilityof the Urssafagencies.

TRANSFEROF THE RECOVERYOF CONTRIBUTIONSTO ACOSS

1stJanuary2011

Formalised by a newconvention onUnemploymentinsurance, thisagreement:- takes into accountpension reform;

- improves theconditions fortakingresponsibility forjobseekersreceiving adisability pension;

- abolishes thespecific rules fortakingresponsibility forseasonalunemployment;

- encompasses theconditions for adecrease in theUnemploymentinsurancecontribution rate.

NATIONALINTERPROFESSIONALAGREEMENT ON THEUNEMPLOYMENTINSURANCE SCHEME

25March2011

The nationalinterprofessionalagreement on theCSP brings aboutthe mergerbetween twoexisting jobseekersupportarrangements, theCRP and the CTP.

CREATIONOF THE IMPROVEDJOB SECURITYCONTRACT (CSP)

31May2011

The negotiationenabled Unédic andthe State (jointfinancers of Pôleemploi) to set outthe guidelines ofthe operator’sservice offer for thenext three years.

START OF THERENEGOTIATION OFTHE TRIPARTITEAGREEMENT BETWEENUNÉDIC, THE STATEAND PÔLE EMPLOI

11May2011

Relating to themonitoring, supportand redeployment ofjobseekers, this jointletter serves as aframework to therenegotiation of theUnédic/State/Pôleemploi tripartiteagreement.

JOINT LETTERTO PUBLICAUTHORITIES

6May2011

Unédic raises1.5 billion Euroson the bondmarket, in orderto finance theUnemploymentinsurance scheme.

BOND ISSUE

31March2011

FFIIGGUURREESSKKEEYY22001111


KEY EVENTSASSURANCE

2 11CHOMAGE

This increase isdecided by the socialpartners who sit onthe Unédic Board of Directors.

1.5% INCREASE IN UNEMPLOYMENTBENEFITS

1stJuly 2011

ENTRY INTO FORCE OF THE NEWCONVENTION ONUNEMPLOYMENTINSURANCE

1stJune 2011

The Unédic Boardgives a positiveopinion on the drafttripartite agreementbetween the State,Unédic and Pôleemploi for the 2012-2014 period. Thetext sets out thepriorities for Pôleemploi and definesits financingarrangement.

THE UNÉDIC BOARDVALIDATES THE NEWTRIPARTITEAGREEMENT

28 November2011

Result of anegotiationthroughout 2011,the agreement issigned on 11January 2012 underthe aegis of XavierBertrand, LabourMinister.

SIGNATURE OF THESTATE/ UNÉDIC/PÔLEEMPLOI TRIPARTITEAGREEMENT

11 January2012

The Improved jobsecurity contract(CSP) is the result of the merger ofexistingarrangements: the Personalredeploymentagreement (CRP) andthe Occupationtransition contract(CTP).

ENTRY INTO FORCE OF THE IMPROVED JOBSECURITY CONTRACT(CSP)

1stSeptember2011

€31.7 BN AAMMOOUUNNTT OOFF RREECCOOVVEERREEDD CCOONNTTRRIIBBUUTTIIOONNSS

16.6 MILLIONEMPLOYEES AFFILIATED TO THEUNEMPLOYMENT INSURANCE scheme

2.2 MILLIONJOBSEEKERS RECEIVINGUNEMPLOYMENT INSURANCE

1.6 MILLIONAFFILIATED COMPANIES

AMOUNT OF BENEFITS

PAID IN 2011

Signed by the Employers’Associations, Medef, CGPMEand UPA, as well as by theTrade Unions CFDT, CFE-CGC, CFTC and CGT-FO, thenew convention will applyuntil 31 December 2013with regard to benefits. The rule on the rate ofcontribution will continue tobe in effect until 31December 2016.

€26.3 bn

UUnnEEddiiccKEEPS PACE WITH CHANGES


1

IN THE ECONOMIC

SITUATION

KEEPS PACE WITH CHANGES

As of the second quarter, 2011 resultedin a negative balance between job creation and loss. For theUnemployment insurance scheme, theincrease in the number of unemployedpeople receiving benefits resulted in adeficit situation. At the same time, the Unédic Board adapted its financialstrategy for the Unemploymentinsurance scheme to market operations,in order to ensure the continuity ofbenefit payments.


The economic situation in 2011 remai-ned particularly unstable. After aprogressive consolidation of growth in2010 and a dynamic first quarter 2011,economic activity in France remainedunchanged. The continuation and deepening of the sovereign debt crisisin the euro zone, in addition to the budgetary consolidation measuresweighed heavy on growth from thesecond quarter. While during the firsthalf of the year, 102,000 jobs werecreated, the slow-down in activitynevertheless resulted in the loss of23,000 jobs in the second half of theyear. 2011 was also characterised bythe decline in temporary employmentand an expected increase in the working population.Until the middle of the year, Unédic’sfinances benefited from the dynamicnature of the wage bill. At the end ofthe first half of the year, there was abrief return to a balance betweenexpenditure and revenue. However, theworsening economic situation in thesecond half of the year resulted inrenewed disequilibrium. At the end of2011, the Unemployment insurancenet debt was 11.5 billion Euros, versus8.6 billion at the end of 2010. Over the

year, it increased by 2.9 billion Euros.After a downward trend in 2010, the number of unemployed peopleincreased in 2011 by 147,000 people incategory A jobseekers, while categoriesB and C registered 75,000 additionaljobseekers receiving benefits. At the end of December 2011, theUnemployment insurance scheme paidout to 2.2 million people, i.e. 87,000more than in the same period the pre-vious year.

Change in behaviour

Unédic also recorded a change in job-seekers’ behaviour. Thus, the practiceof reduced activity continued toincrease in 2011 (10.5% compared to2010), bringing the number of people inreduced activity who are entitled tobenefits to 1.1 million, whether recei-ving benefits or not. There are also more jobseekers settingup their own business. In 2011, 75,000business start-up candidates were sup-ported by the Unemployment insurance scheme within the frameworkof the Assistance for the takeover orcreation of a company (ARCE) arrange-ment.

AGGREGATE DEBTOF 14.1 BILLIONEUROS AT THEEND OF 2012May 2012 estimate

According to theupdated forecast for thefinancial equilibrium ofthe Unemploymentinsurance scheme for2012, the labour marketsituation will contributeto an increase in thescheme’s expenditureand a decrease inrevenue. Unédic isexpecting a negative"revenue/expenditure"balance that wouldincrease the scheme’sdeficit by 3 billion Euros.At the end of the year,the Unemploymentinsurance debt wouldreach 14.1 billion Euros.

After a dynamic first quarter in terms of job creation, activityslowed down and unemployment began to creep back up inthe second half of the year.

2011,THE STIFLEDE C O N O M I C S I T U A T I O N

RECOVERY


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N++8877,,000000JOBSEEKERS RECEIVINGBENEFITS IN 2011 COMPAREDTO 2010. OVER THE YEAR, THE TOTAL NUMBER OF JOBSEEKERS (CATEGORIES A, B AND C) INCREASED BY 222,000.

20070.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5Workforce in millions

Jobseekers in category DEFM A

2008 2009 2010 2011

Unemployed people receiving unemployment insurance

Source: Pôle emploi, Unédic, Unédic forecasts. Fields: unemployed people receiving unemployment insurance, excluding CRP, CSP, CTP, training, seasonally adjusted data for the whole of France.

WAGE BILL AND UNEMPLOYMENT INSURANCE CONTRIBUTIONS (year-on-year in %)

TREND IN JOBSEEKERS RECEIVING UNEMPLOYMENT INSURANCE (level in thousands)

2011 was characterised by the instability of the financial markets and by their preference for short-term investments. In order tocarry out its missions, Unédic adapted its financial strategy. Half (51%) of Unédic’s debt (11.5 billion Euros at the end of 2011) wasfinanced by bond issues, and the remainder (49%) by commercial papers. By issuing the latter, it was possible to supplement thefinancing under very satisfactory rate conditions. However, this strategy did not protect the Unemployment insurance scheme froma possible interest rate hike. This is why for 2012 Unédic set the objective of progressively re-balancing its sources of financing byonce again prioritising mid-term and long-term borrowing.

-6.0

-20-16-12

-8-4048

-5.0-4.0

-3.0-2.0

-1.00.01.0

2.03.0

4.05.0

6.0

2007

2007 2008 2009 2010 2011 2012

Year-on-year %

Billions of Euros

Wage bill

Forecast

Forecast

2008 2009 2010 2011 2012

Contributions

Net banking indebtednessBalance = Revenue - expenditure

-6.0

-20-16-12

-8-4048

-5.0-4.0

-3.0-2.0

-1.00.01.0

2.03.0

4.05.0

6.0

2007

2007 2008 2009 2010 2011 2012

Year-on-year %

Billions of Euros

Wage bill

Forecast

Forecast

2008 2009 2010 2011 2012

Contributions

Net banking indebtednessBalance = Revenue - expenditure

Source and forecasts: Unédic

Source: Pôle emploi, Unédic, Unédic Forecasts

CHANGE IN CASH BALANCEIn 2012, the debt level would reach - 14.06 billion Euros

UNEDIC KEEPS PACEWITH THE CHANGEIN FINANCIALMARKETS

JJOOIINNTT MMAANNAAGGEMENT


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ITS ROLEJOINT MANAGEEMMEENNTTCONSOLIDATES

Transfer to Acoss of the recovery of Unemploymentinsurance contributions, negotiation of the tripartiteagreement between the State, Unédic and Pôle emploi:Unédic guarantees the social partners managerial anddecision-making autonomy.

in contributions

for Pôleemploi budgetin Unemployment

insurance benefits

Mandatory insuranceagainst the risk

of job loss

To encourage a swift return

to work

Deductedby social security

organisations

Managed jointlyPaid by Pôle emploi

Private sector employees and employers contribute to the Unemployment insurance scheme together

Since 1st January 2011, Acoss (Central Agency of Social Security Organisations), CCMSA, CCVRPand the central funds of Monaco and of St-Pierre & Miquelonhave centralised recovery for greater simplicity for companies

• Negotiate and establish unemployment benefit • Determine the rate of contribution of employers and employees to the Unemployment insurance scheme

• Registration of jobseekers• Calculation and payment of their benefits• Support towards returning to work• Canvassing of the labour market• Assistance to companies for recruitment• Job search monitoring

• Finances Pôle emploiup to 64% of its budget

• Implements the conventionon unemployment insurance

€31.7billion

€29billion

de points de retraitecomplémentaire desdemandeurs d'emploi

2,7milliards €

€3billion

in return-to-work

assistance

€1.1billion

Social partners

UNEMPLOYMENT INSURANCE BENEFITS


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in contributions

for Pôleemploi budgetin Unemployment

insurance benefits

Mandatory insuranceagainst the risk

of job loss

To encourage a swift return

to work

Deductedby social security

organisations

Managed jointlyPaid by Pôle emploi

Private sector employees and employers contribute to the Unemployment insurance scheme together

Since 1st January 2011, Acoss (Central Agency of Social Security Organisations), CCMSA, CCVRPand the central funds of Monaco and of St-Pierre & Miquelonhave centralised recovery for greater simplicity for companies

• Negotiate and establish unemployment benefit • Determine the rate of contribution of employers and employees to the Unemployment insurance scheme

• Registration of jobseekers• Calculation and payment of their benefits• Support towards returning to work• Canvassing of the labour market• Assistance to companies for recruitment• Job search monitoring

• Finances Pôle emploiup to 64% of its budget

• Implements the conventionon unemployment insurance

€31.7billion

€29billion

de points de retraitecomplémentaire desdemandeurs d'emploi

2,7milliards €

€3billion

in return-to-work

assistance

€1.1billion

Social partners

UNEMPLOYMENT INSURANCE BENEFITS



SUCCESSFULTRANSFEROF THE RECOVERYOF CONTRIBUTIONS

The law of 13 February 2008 set 1stJanuary 2012 as the deadline for thetransfer of the mission to recoverUnemployment insurance contributionsand Wage guarantee insurance (AGS)contributions to the Urssaf agencies.Committed since 2009, this secondstage of the Public employment servicereform finished a year before the dead-line set by the legislator. This operationis the result of close collaboration between the three institutions involved:Acoss (Central Agency of Social SecurityOrganisations including the Urssafagencies), Pôle emploi and Unédic. On anational scale, the transfer of the reco-very mission involves 1.6 millionestablishments.The aim of the reform is to simplify theformalities of employers, by allowing fora single declaration and a single pay-ment to just one organisation, theirUrssaf agency, and this shall apply to allsocial contributions, Unemploymentinsurance contributions and AGS contributions.During 2011, Unédic’s role has primarilybeen to ensure that deployment wascarried out under good conditions, in

order to maintain the managerial auto-nomy of the social partners.In partnership with the recovery ope-rators, indicators for controlling andmonitoring activity were set out andimplemented, in order to enable Unédicto fully play its role to monitor, forecastand engage in the financial manage-ment of the Unemployment insurancescheme.

A major challenge

The recovery of Unemployment insur-ance contributions by Acoss alsoconstituted a major challenge for thescheme: the certification of its accountsin a new context. This was a challengebecause since 1st January 2011,Unédic’s revenue had been recovered byan organisation with public establish-ment status, and as such was subject todifferent accounting standards. The certification of Unemployment insu-rance accounts required closecollaboration between Unédic’s certi-fying auditors and the FrenchAccounting Court, the certifying body forSocial Security organisations.

4.5 MILLIONEMAILSDuring the second halfof 2010, an extensiveinformation campaignfor companies precededthe actual transfer ofthe recovery mission on1st January 2011. 4.5million emails and 5.5million letters were sentto companies,accountancy firms andpayroll softwarepublishers. The resultlived up to expectations.Fewer than 3contributors out of 100filed incomplete returnswith the Urssafagencies.

The transfer to Acoss of the recovery of employers andemployees’ contributions to the Unemployment insurancescheme came into force, as expected, on 1st January.

R E V E N U E

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The general working arrangements bet-ween the two certification authoritieshave been regulated by decree since 2010. Throughout 2011, a joint work prog-

ramme made it possible to define andoptimise the specific procedures for theexchange of, access to and processing ofaccounting information, as well as a joint

monitoring arrangement, thereby gua-ranteeing the full managerial autonomyof the social partners in a sustainablemanner.

>>>

€€2255..88 BBNN THE OTHER OPERATORSINCLUDING PÔLEEMPLOI, CCMSA ANDACOSS FOR SPECIFICARRANGEMENTS,RECOVERED €5.9 BN IN 2011.

BETTER DETECTION OF UNEMPLOYMENT INSURANCE CONTRIBUTIONS FRAUDBy implementing new control mechanisms, the transfer of recovery also operates to improve the overall fraud detectioncapacity. In 2011, frauds detected by Acoss, essentially cases of undeclared work, could represent 18.8 million Euros. SocialSecurity’s recovery branch planned several actions in this regard in 2012. Besides prevention and information actions,Acoss is working on developing information exchanges with the tax arena and the other social protection organisations.Unédic intervenes by establishing control operations and by ensuring the coordination of fraud prevention actions betweencontribution and indemnification.

CREATION OF PÔLEEMPLOI ANDASSUMPTION OFRESPONSIBILITY FORRECOVERY

LAUNCH OF THEINFORMATIONCAMPAIGN FORCOMPANIES

EFFECTIVE TRANSFEROF RECOVERY OFUNEMPLOYMENTINSURANCECONTRIBUTIONS FROMPÔLE EMPLOI TO ACoss

1ST PILOT PHASE OF THE TRANSFER OFRECOVERY IN ÎLE-DE-FRANCE (530ESTABLISHMENTS)

2ND PILOT PHASE OF THE TRANSFEROF RECOVERY ACROSSTHE DÉPARTEMENT OF THE RHÔNE (74,000ESTABLISHMENTS)

19 Deccember

2008 1st January2010

July 2010

September2010

1st january2011

A TWO-YEAR REFORM OF THE PUBLIC EMPLOYMENT SERVICE

IN CONTRIBUTIONS RECOVERED BY ACOSS


IMPROVEDARRANGEMENTS for

Signed on 6 May 2011 by Medef,CGPME and UPA, as well as by theCFDT, CFE-CGC, CFTC and CGT-FO, thenew convention on Unemploymentinsurance concerns all employeeswhose employment contract termina-ted after 1st June 2011. The text, whichtakes into account the provisions of thenational interprofessional agreementof 25 March, extends until 31 December2013 the majority of the benefit rulesarising from the previous conventionon Unemployment insurance, dated 19February 2009.

Three changes

Among the major principles negotiatedby the social partners in 2009, there isone relating to a benefit period equalfrom now on to the duration of paidwork (up to 24 months for under 50s), asingle benefit stream and the relaxingof conditions to access Unemploymentinsurance (entry into the scheme aftera minimum of four months’ work over aperiod of 28 months), and finally thegranting of benefit subject to an activesearch for work, within the frameworkof a personalised plan for accessing

employment (PPAE).The convention of 6 May 2011 includesseveral changes. Besides taking intoaccount the pension reform arisingfrom the law of 9 February 2010, thetext improves the conditions for takingresponsibility for jobseekers receivinga disability pension or subject to seas-onal unemployment. From now on,unemployment benefit can be combi-ned with the 2nd or 3rd categorydisability pension, according to theSocial security rules (Article R 341-15),provided that the income from the lastjob that gave entitlement to rights isalso combined with the pension. As of1st June 2011, the benefit rules specificto seasonal unemployment were abol-ished. Those people whose job wasconsidered seasonal now receive bene-fits under the conditions of the generalscheme. The third change to theconvention of 6 May 2011 concernsemployers. The text establishes theconditions for a decrease in theUnemployment insurance rate ofcontribution, both for employers andfor employees, according to thescheme’s operating profit/loss and itsdebt level.

GROWTH IN REDUCED ACTIVITYIn 2011, 41% ofUnemploymentinsurance recipientswere working on areduced basis, i.e. 10.5%more than in 2010, takinginto account the increasein unemployment.Started in 1962, thisarrangement makes it possible, subject toconditions, to combinean income and anUnemploymentinsurance allowance. For 2011, 26.2% of Unemploymentbenefit (ARE) recipientscombined income andthe allowance, up by 1.9points compared to 2010.One out of two benefitrecipients working on a reduced basis (52%)therefore claims anaverage allowance of 768 Euros that theycombine with an incomecorresponding to anaverage of 69 hours of work per month.

The new convention of 6 May 2011, on unemployment bene-fit, resumes the convention drawn up in 2009 while improvingits provisions.

I N D E M N I F I C A T I O N

JOBSEEKERS


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2010 2011 Change over one year

Filed Cases 8,154,024 8,249,291 1.2%Admission decisions 2,164,376 2,194,917 1.4%Rejection decisions 2,537,662 2,414,166 -4.9%First payments 3,521,971 3,628,176 3.0%Including write-backs 1,092,214 1,135,486 4.0%Cessations of payment 3,366,291 3,492,902 3.8%Including resumption of work 673,081 725,211 7.7%Including end of regulatory rights 1,024,088 1,071,422 4.6%

44,,557766,,000000PEOPLE RECEIVing AN ARE OR AREF BENEFIT AT LEASTONCE IN 2011, FOR AN AVERAGE OF 2,183,000 PEOPLE RECEIVING BENEFITSEVERY MONTH.

UNEMPLOYMENTINSURANCEACTIVITYIN 2011

UNEMPLOYED PEOPLE RECEIVING BENEFITS BY AGE AND SEX

Field: Unemployment insurance, all benefits, whole of France. Source: STMP. Gross data.

Field: Whole of France - Source: FNA

Men Women Men Women Men Women

200,000 150,000 100,000 50,000 0 50,000 100,000 150,000 200,000

under 20

20 to 25

25 to 30

30 to 35

35 to 40

40 to 45

45 to 50

50 to 55

55 to 60

60 ans and over

under 20

20 to 25

25 to 30

30 to 35

35 to 40

40 to 45

45 to 50

50 to 55

55 to 60

60 ans and over

under 20

20 to 25

25 to 30

30 to 35

35 to 40

40 to 45

45 to 50

50 to 55

55 to 60

60 ans and over

6,000 4,000 2,000 0 2,000 4,000 6,000 8,000 10,000 12,000

20,000 10,000 0 10,000 20,000 30,000 40,000 50,000

ARE and AREF

ARE and AREF Temporary workers

ARE and AREF casual workers in the entertainment industry

CSP, CRP, CTP conversion70,850

Training Unemployment Insurance78,642

Training Solidarity Benefit33,350

Jobseekers receiving Unemployment insurance 2,052,408

Jobseekers receiving Solidarity benefit425,583

Not receiving benefits 2,045,333

Benefit recipients2,667,342

State early retirees 6,508

Jobseekers receiving benefits2,477,992

Jobseekers in training or conversion182,842

Source: Pôle emploi, Unédic (DEFMA, B, C, D, E + DRE)

4,712,675 JOBSEEKERSiN 2011(monthly average)


THE RETURNTO WORKSUPPORT MEASURESARE MAINTAINED

In order to make it easier for them toreturn to work, unemployment benefitrecipients may use their benefits in theform of assistance granted according totheir individual situation. The threearrangements provided for in 2009 havebeen maintained by the new conventionon Unemployment insurance of 6 May2011. They concern compensatory allowance upon redeployment (ARD) inthe event of taking up a lower-paid jobthan the previous one, assistance for thetakeover or creation of a company (ARCE)in the form of capital paid in two instal-ments, and finally the option to combine,under certain conditions, the unemploy-ment benefit with a salary (reducedactivity). Alongside these provisionsfinanced directly by the scheme, Unédicalso contributes to benefits accessible toall jobseekers, whether or not they fallunder the Unemployment insurancescheme. This contribution is madewithin the framework of its contributionto the financing of the operating costs ofPôle emploi. This financing at a rate of10% of employers’ contributions to theUnemployment insurance schemerepresents approximately 3.0 billion

Euros per year. Included in these bene-fits are training courses, employer’sassistance within the framework of aprofessional training contract and mea-sures designed to lift the barriers to theactive search for or return to work: relo-cation assistance, driving licence funding,childcare assistance for single parentsnot receiving Unemployment benefit.

Special extended measures

The new convention also maintains special benefits for employees affectedby short-time working. These measureshad been taken by the social partners inreaction to the economic crisis of 2009.In 2011, Unédic contributed 20 millionEuros to financing the Long-term reduced activity arrangement (APLD),which provides for the payment of additional short-time working allow-ances for employees experiencing anextended reduction in activity beneaththe legal or contractual work period. Thisarrangement was maintained in 2011.The initial financial package of 150 mil-lion Euros, granted by the social partners,was not used in full.

A COMPENSATORYALLOWANCE UPONREDEPLOYMENTReserved for peoplewho cannot benefitfrom the combination ofUnemployment benefitwith their pay, thecompensatoryallowance uponredeployment makes iteasier to take up alower-paid job(minimum difference of15% per equivalent hourof work). It concernsbenefit recipients aged50 or over, and thosewho have beenreceiving benefits for atleast 12 months.

The convention on Unemployment insurance of 6 May 2011maintains and reinforces the support measures encouraginga return to employment.



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ARCE RECIPIENTS BY SEX (%)

41 779 37,38 %

50 55745,24 %

18 21816,30 %

moins de 25 ans 8,9de 25 à 29 ans 18,3de 30 à 39 ans 36,9de 40 à 49 ans 25,450 ans ou plus 10,5Total 100,0

2011Non renseigné 0,1Aucune formation scolaire 1,8inférieur au CAP ou BEP 4,4niveau BAC ou équivalent 21,9niveau BAC+2 17,0niveau BAC+3 et plus 16,5niveau CAP/BEP ou équivalent 37,4études primaires 0,8Total 100

Men70.6

10.5 8.9

18.3

36.9

25.4Women

29.4- 2525 to 2930 to 3940 to 4950 +

ARCE RECiPIENTS BY AGE BRACKET (%)

41 779 37,38 %

50 55745,24 %

18 21816,30 %



Men70.6

10.5 8.9

18.3

36.9

25.4Women

29.4- 2525 to 2930 to 3940 to 4950 +

ARCE RECIPIENTS BY LEVEL OFGENERAL EDUCATION (%)

41 779 37,38 %

50 55745,24 %

18 21816,30 %



Hommes 70,6

10,5 8,9

18,3

36,9

25,4Femmes

29,4- de 25 ansde 25 à 29 ansde 30 à 39 ansde 40 à 49 ans50 ans et +

Others (Basic education, no training etc.) 2.8

Lower than CAP or BEPvocational qualification 4.4

Baccalaureatelevel or equivalent 21.9

Baccalaureatelevel + 2 years17.0

Baccalaureate level + 3 years and over 16.5

CAP/BEP or equivalent vocational qualification37.4

€984 M FOR UNEMPLOYMENT BENEFITAND TRAINING In 2011, on average 78,200 jobseekers received Unemployment Benefit and Training every month, within the framework ofa training programme prescribed by Pôle emploi encouraging a return to work. Over the year, the Unemployment insurancescheme devoted 984 million Euros to training Unemployment benefit (AREF) recipients, which is close to the 2010 level (982million Euros). This 0.2% increase is explained by a 0.72% increase in the average amount of daily allowance, and a 0.52%reduction in the number of days for which payments are made.

19,4%

24 %

4,6%

Field: recipients of Unemployment insurance including training, CTP-CRP-CSP as at 30 November 2011;ARCE recipients receiving ARCE for the first time in 2011.Source: National file of benefit recipients, Unédic calculations.

Field: benefit recipients havingreceived at least one ARCEpayment in 2007Source: FNA, benefits file

Field: benefitrecipients receivingARCE for the firsttime.Source: National fileof benefit recipients,Unédic calculations.

76%

Not re-registered Re-registered

= 2 payments

= 1 paymentARCE RECIPIENTSRE-REGISTEREDAS UNEMPLOYEDAll the recipients who received Assistance forjobseekers taking over or creating a companyin a single payment re-register as jobseekerswithin five years.

PAID TO ASSIST JOBSEEKERSTAKING OVER OR CREATINGCOMPANIES. IN 2011, 74,476RECIPIENTS OF UNEMPLOYMENTINSURANCE BENEFITED FROMTHIS ARRANGEMENT.


UNEMPLOYMENT INSURANCEA CONTINUOUSLyIMPROVINGSYSTEM With the law of 13 February 2008, thepublic employment service was extensiv-ely remodelled. After two years duringwhich the various stakeholders exploredand grew accustomed to their scope ofresponsibility, 2011 marked the comple-tion of this transition process. Duringthis period, Unédic adapted all of its acti-vities in order to progress from leading anetwork to organising relations with theoperators in charge of paying benefits(Pôle emploi) and recovery (Acoss,CCMSA, CCVRP etc.). The challenge of thisadaptation consists not only in ensuringthat the guidelines and decisions of theUnédic Board are known and understood,but also in organising, with the operators,the audits making it possible to verify theproper application of legal and regulatoryprovisions, in addition to the successfuloperating of their internal control arrangements. In 2011, Unédic conduc-ted four audits within Pôle emploi’sdepartments. These audits were decidedby the Unédic Board and scheduled in amultiannual plan, in coordination withthe operators in question.

The audits in 2011 to guarantee the properapplication of the regulation

The aim of an initial audit was to verifythe correct operating of the incentivemeasure to return to work (combina-tion of unemployment benefit and asalary). By examining the conditions formonitoring jobseekers, the measures topromote this arrangement, the specificcharacteristics of the IT system but alsothe control and monitoring of activitiesdelegated to external service providers,this audit contributed to the deliberat-ions of the social partners onimprovements to be made.In the same vein, a second auditconcerned the conditions for a case-by-case review of the jobseekers’ files, withthe aim of assessing compliance withthe regulatory texts signed by the socialpartners and the delegations grantedby the Unédic Board of Directors to Pôleemploi, to rule on the individual situat-ions of jobseekers. This audit resultedin a project to improve the submission

LEGAL EXPERTISEAT THE DISPOSALOF STAKEHOL-DERS INVOLVEDIN THE EMPLOY-MENT SECTOROn Unédic’s extranet, aquestion/answerservice onUnemploymentinsurance regulationenables Pôle emploidepartments and somepublic sector employersand expert subscribersto obtain answers totheir legal questionsmore quickly. In 2011,367 questions wereasked via the extranet,187 by email and 360specific requests,formulated byemployers, the FrenchOmbudsman or that ofPôle emploi, were sent a written answer.

Unédic monitors compliance with regulation and the decisionsof the social partners. Through its audit missions, it also helpsthem in their deliberations in order to improve the perfor-mance of the Unemployment insurance system.


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Beyond the financial aspect, the increase in the number ofcases of detected fraud is all the more striking, since thenumber of benefit recipients has not changed in the sameproportions. The failure to declare periods of work re-mains the leading mechanism for fraud (30%). The second most frequent basis for fraud is associated with fictitiousjobs and false declarations by employers (15%).

2009

1,76111,805 2,68818,252 3,78518,763

2010 2011Number of casesAmount (in thousands of Euros)

Source: Pôle emploi.

Pursuant to the convention on Unemployment in-surance, the local social partners, convened in jointregional bodies (IPR), have the jurisdiction to rule onindividual cases of jobseekers or employers forwhom an individual review is necessary. The Uné-dic Board has also given Pôle emploi the authorityto take decisions by means of delegation. But thisauthority only concerns cases for which Pôle emploiis in a position to take a positive decision.

Starting point to define objectives tobe achieved by Pôle Emploi

41,779 37.38%

50,55745.24%

18,21816.30%

Voluntary redundancies

Other (total unemploymentwithout termination of theemployment contract, increased payments etc.)(1,205 – 1.08%)

Assessment of certainentitlement conditions

Overpayments

Total forthe wholeof France:111,759 100%

of files to decision-making bodies. Athird audit checked the efficiency ofrecovery by Pôle emploi of sums due byemployers in the event of redundancywithout actual and serious basis. Theresult expected by the Unemploymentinsurance scheme came to 16 millionEuros in additional contributions.Finally, within the framework of a jointaudit mission with the manager of Pôle

emploi’s internal audit, a fourth auditfocussed on the management of over-payments by Pôle emploi departments.The efficiency of the recovery of over-payments depends in large part on thespeed of bringing prelitigious recoveryproceedings (amicable letter and formalnotice). The aim is to quickly reach anagreement with the jobseeker, in orderto avoid costly litigation proceedings for

them. In 2011, the rate of overpay-ments was 3.1% of benefits paid, andthe balance of overpayments to berecovered was 1.6% of benefits paid.This audit revealed contrasting situa-tions in the four audited regions, inaddition to inconsistencies in the liti-gious action which is potentiallyprejudicial to the Unemployment insu-rance scheme.

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111,759

Year Year Target 2010 2011 2014

First payments within deadlines ns 89% 93%Quality of processing benefit requests 91,7 % 90.8% ndShare of overpayments not recovered 1,48 % 1.63 % nd

3 INDICATORS TO MEASURECOMPENSATION

INDIVIDUAL CASES PROCESSED

FAILURE TO DECLARE A PERIODOF WORK: LEADINGMECHANISM FOR FRAUD


NEW OBJECTIVES forPOLE EMPLOI

Signed on 19 January 2012 by the socialpartners, the State/Unédic/Pôleemploi tripartite agreement sets thePôle emploi objectives for the 2012-2014 period. It was the subject ofcareful preparation throughout 2011.The tripartite agreement sets the fra-mework of reference for Pôle emploi’saction, as well as the priorities identi-fied by the State and Unédic, its jointfinancers. Indeed, the Unemploymentinsurance scheme contributes 64% ofPôle emploi budget (3 billion Euros in2011).The new agreement gives concreteexpression to the expectations of thesocial partners as they were expressedon 6 May in the joint letter relating tothe monitoring, support and redeploy-ment of jobseekers (see opposite).Three main objectives are set by thenew text.With regard to jobseekers, the newagreement seeks to strengthen thepersonalisation of the service offer,because not all jobseekers andemployers have the same needs. A

second objective concerns the streng-thening of the relationship with theterritories, by adapting Pôle emploi’sservice offer to territorial realities (characteristics of the employmentarea, partnership opportunities etc.).The tripartite agreement also sets asthe third objective the continuation ofthe effort to optimise Pôle emploi’sresources, which involves streamliningits organisation and assigning thebenefit thereof to support jobseekers.

Concrete objectives

Among the concrete expressions ofthese objectives is that of establishinginitial contact with the newly-registered jobseeker within ten days,and putting in place a regular follow-up after four months. With regard tocompanies, it is about better targetingservices by focussing resources onemployers who are encounteringrecruitment difficulties in industriesunder pressure, or offering sustainablejobs.

THE JOINT LETTER SETS THE AGENDAIn a joint letteraddressed on 6 May2011 to the localauthorities, the socialpartners set out theobjectives that theywant to see in place atPôle emploi. Making"improving jobseeker"support a priority, thetext demands thereinforcement andpersonalisation ofjobseeker services, anincrease in theresources devoted totheir support, a better-targeted service offer tocompanies and a closerrelationship with theterritories.

Signed in 2008, the first State/Unédic/Pôle emploi tripartiteagreement focussed on the resources given to Pôle emploi aspart of the merger of the Assedic and Anpe employmentagencies. Three years later, a new agreement is setting theobjectives to be attained for the 2012-2014 period.


RAPPORT D’ACTIVITÉ – ASSURANCE CHÔMAGE 2011 | 23

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NEW INDICATORS CENTRED ON DECISION-MAKING ASSISTANCEOBJECTIVE INDICATOR

Increase the number of returns to sustainable employment Exit rate to sustainable employment

… particularly for long-term jobseekers Exit rate to sustainable employment for long-term jobseekers

Reduce the risks of long-term unemployment… Share of jobseekers still on the lists twelve months after their registration

… particularly for young people and senior citizens Share of young people (under 25) and senior citizens (50 and over) still on the lists twelve months after theirregistration

Avoid jobseekers staying out of work for too long Out of work for the last 24 months

Improve the efficiency of training programmes Exit rate to sustainable employment 6 months after any prescribed training

These new indicators allow for more detailed operational control and swifter adjustment of actions according to the firstresults obtained.

Hommes 70,6 %

6 MONTHS0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 12 MONTHS 18 MONTHS 24 MONTHS

TotalUnder 3030-3940-4950 or over

Source: FNA. Field: registered as jobseekers, whether receiving benefits or not, from April 2008 to March 2009,excluding appendices 8 and 10, for the whole of France.

As a new indicator to understand the deve-lopment of unemployment, the rate of long-term unemployment makes it possible toevaluate the risk of remaining registered onthe jobseeker lists for a certain length oftime, according to whether one is a man ora woman, according to age, sector of activity,region or level of basic training. This studywas conducted for the first time in 2011(publication January 2012).

4455%% OOFF JJOOBBSSEEEEKKEERRSSREGISTERED ON A GIVEN DATE ARE STILL UNEMPLOYED ONE YEAR AFTER THEIR REGISTRATION.

AVERAGE RATE OF LONG-TERMUNEMPLOYMENT BY AGE


THE CSPReplaceSTHE CRP AND THE CTP

The improved job security contract (CSP)is a result of the will of the social part-ners and the State to create a singlearrangement to manage employeesaffected by a redundancy procedure foreconomic reasons. Arising from thenational interprofessional agreement of31 May 2011, the CSP was applicable asof 1st September 2011, that is to say forany employees whose redundancy pro-cedure for economic reasons wasinitiated after this date. Companiesmust offer the CSP to their employeesas soon as they envisage a redundancyprocedure for economic reasons, eitherduring the interview prior to redundancy,or in the first letter of invitation to thefirst meeting of the staff representativebodies. The arrangement concerns companies withfewer than 1,000 employees engaged ina redundancy procedure for economicreasons and any companies in receiver-ship or compulsory liquidation,irrespective of their staff numbers. Asfor the employees, they have freedom ofchoice. If they do not opt for the CSP,they will receive unemployment benefit.Nearly one out of two employees maderedundant for economic reasons chosethe CSP option in 2011. The CSP’s objective is to maintain, for a

year, a payment close to the previousnet salary, and to organise the initiationof the return-to-work programmethrough personalised and reinforcedsupport. The improved job security planprovides for a follow-up by a specificreferent, a skills assessment, trainingcourses or short periods of work (twoweeks to six months).

An arrangement adapted to local realities

Throughout this entire period, anyemployee made redundant for econo-mic reasons and furnishing proof of atleast one year of service shall receivebenefits equal to 80% of their formersalary. They may also get unemploy-ment benefit in the form of acompensatory allowance upon rede-ployment covering the difference insalary of a new job that is lower paidthan the previous one, or relocation,moving allowances, etc.The social partners also wanted thisarrangement to be constantly adaptedto the economic reality of employmentareas. The CSP is controlled jointly bythe State and the social partners:• nationally, within the framework of apolitical steering committee;

THE IMPROVED JOB SECURITYCONTRACT TAKESUP AND IMPROVESTHE EXISTINGARRANGEMENTS With the CRP, theinitiative to offer thearrangement to theemployee belongedsolely to the employer.The CSP, like the CTPbefore it, can now beoffered directly by Pôleemploi. The CSP alsoenables recipients whohave the option to carryout periods of workduring the occupationalchangeover period,which was not providedby the CRP.

The new arrangement unifies measures designed foremployees affected by a redundancy procedure for economicreasons. Its implementation is entrusted to Pôle emploi.

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• on regional and ”départemental” and”interdépartemental” levels, according tothe extent of the changes and dedicated

sites. Technical steering committeesshall assist these bodies with regard tooperational and material matters. The

joint regional bodies (IPR) sit on theregional, ”départemental” and ”interdé-partemental” steering committees.

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HELPING THOSE UNDER 26 STAY IN WORKThe national interprofessional agreement of 7 April 2011 signals the social partners’ will provide more support to youngpeople under 26, in order to aid their entry into sustainable employment. Whether it is assistance for mobility, driving licence funding or clothing grants before receipt of the first salary, the measures concern young people under 26 in permanent employment contracts, temporary employment contracts of over six months, apprenticeship and professionaltraining contracts. Financing is obtained by redeploying a small portion of Unemployment insurance benefits for the creationof a company (ARCE).

6655,,000000BBEENNEEFFIICCIIAARRIIEESS IN 2011

IN 2011, FEWER THAN ONE OUT OF THREE JOBSEEKERSAFFECTED BY A REDUNDANCY PROCEDURE FORECONOMIC REASONS CHOSE THESE REINFORCEDARRANGEMENTS, DESPITE THEir ADVANTAGES

JANVIER FÉVRIER MARS AVRIL MAI JUIN JUILLET AOÛT SEPTEMBRE OCTOBRE NOVEMBRE DÉCEMBRE0

50 000

100 000

150 000

200 000

250 000

300 000

ARE

CRPCTP

ARE CRP CSP

0

50,000

100,000

150,000

200,000

250,000

JAN. 1

1

FEB. 1

1

MAR. 11

APR. 11

MAY. 11

JUN. 1

1

JUL.

11

AUG. 11

SEPT.

11

OCT. 11

NOV. 11

DEC. 1

1

JAN. 1

2

FEB. 1

2

MAR. 12

APR. 12

JANVIER FÉVRIER MARS AVRIL MAI JUIN JUILLET AOÛT SEPTEMBRE OCTOBRE NOVEMBRE DÉCEMBRE0

50 000

100 000

150 000

200 000

250 000

300 000

ARE

CRP

CSP

CTP

ARE CRP CSP

0

50 000

100 000

150 000

200 000

250 000

JANV.

11

FEV.

11

MAR. 11

AVR. 1

1

MAI. 11

JUIN. 1

1

JUIL.

11

AOÛT. 11

SEPT.

11

OCT. 11

NOV. 11

DEC. 1

1

JANV.

12

FEV.

12

MARS. 12

AVR. 1

2

AN AVERAGE OF

The first improved job security contract(CSP) beneficiaries received benefits inSeptember 2011. On average in 2011,the flow of CSP/CRP/CTP beneficiariesrepresented nearly 45% of beneficiariesreceiving benefits after redundancy foreconomic reasons. Note that this pro-portion strongly increased at thebeginning of 2012 to be nearer to 60%over the last three known months.

REINFORCEDSUPPORTARRANGEMENTS

in 2011

UUnnEEddiicc


PLAYS AN ACTIVE ROLE IN THE EVOLUTION


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OF THE PUBLICEMPLOYMENTSERVICE

PLAYS AN ACTIVE ROLE IN THE EVOLUTION

Led by the social partners, Unédic is uniquely situated in thePublic Employment Service. Manager of the Unemploymentinsurance scheme and the entity laying down the rulesdecided by the social partners, it is open to its environmentin order to affirm its mission of overseeing the performanceof the Unemployment insurance scheme, to better evaluatethe efficiency of joint management and to contribute to thereflection of all stakeholders in the labour and employmentmarket.


Since 1958, the law has entrusted thesocial partners with the responsibility ofmanaging the Unemployment insurancescheme in France. They play two separ-ate but complementary roles. Firstly,the social partners (Medef, CGPME andUPA for employers, and CFDT, CFE-CGC,CFTC, CGT and CGT-FO for employees)are responsible for determining throughnegotiation the amount of contributions,the indemnification rules (entitlementconditions, amount and duration of thepayment of the allowance) in addition tothe nature of the various benefits tobenefit recipients.Secondly, the mission of their represen-tatives on the Unédic Board of Directorsis to manage the Unemployment insur-ance scheme, that is to say to ensurethe recovery of contributions from com-panies and the indemnification ofjobseekers according to the rules defi-ned during negotiation. The Unédicboard of directors is appointed for twoyears. It is made up of an "employees"board and an "employers" board eachcomprising 25 members. This board ofdirectors elects the joint Board, made upof 10 members, which ensures the run-ning of Unédic. This is an associationunder the law of 1901, and therefore aprivate sector organisation. Its missionis to support the social partners in orderto ensure that the convention onUnemployment insurance is applied and

the financing of the scheme is managed.

Four missions for Unédic

Since 2009, the reform of the Publicemployment service has placed Unédicat the heart of a network of stakehol-ders. The Central Agency of SocialSecurity Organisations (ACOSS) and theother operators (CCMSA, CCVRP etc.) ful-fil the mission to recover contributionsfrom companies. For its part, Pôleemploi carries out the payment of allo-wances to unemployed people receivingbenefits. This situation led the Unédicboard of directors to redefine its mis-sions:• lay down and guarantee the conditionsof implementation of the Unemploymentinsurance scheme and associatedagreed arrangements;

• ensure the financial management ofthe Unemployment insurance schemeand associated agreed arrangementsin order to guarantee Unédic’s manag-erial autonomy;

• produce forecasts, studies, analysesand information and decision-makingassistance elements required by thesocial partners and Unédic’s decision-making bodies;

• monitor and audit the conditions ofimplementation of the Unemploymentinsurance scheme and associatedagreed arrangements.

INCREASINGACCESS TOINFORMATIONAccessed via the webaddress unedic.fr, in2012 the new websitewill replace the existingunedic.org website.Organised aroundessential informationabout unemploymentbenefits and theorganisation of thesystem in France, thiswebsite will also offerunique comparisonswith the schemes ofmany other countries. Itallows for searches bysubject, access to thelatest news and themain key data about theUnemploymentinsurance scheme inFrance. All of Unédic’slegal and statisticalpublications may beconsulted on thiswebsite and accessedvia download.

www.unedic.fr

RESPONSIBILITYAUTONOMyAND TRANSPARENCY OFJOINT MANAGEMENTUnédic’s mission is to guarantee the performance of theUnemployment insurance scheme in France and the mana-gerial autonomy of the social partners.


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WITH MORE THAN 640,000VISITORS EVERY YEAR,UNÉDIC’S WEBSITECONSOLIDATES ITS ROLEDEDICATED TO THEUNEMPLOYMENT INSURANCESCHEME’S TRANSPARENCY

UNÉDIC PARTICIPATES IN THE REFLECTION OF STAKEHOLDERS IN THE LABOUR AND EMPLOYMENT MARKETAt the heart of the system, Unédic is in a position to enlighten all of the stakeholders and observers about changes in thelabour market. Through its action, Unédic participates in the virtuous circle of Unemployment insurance improvement, byexplaining the meaning of its action and by regularly sharing its information about the system’s performance. In thecourse of the year, Unédic has responded to requests for information from the French Senate, the Economic and SocialCouncil, the National Assembly, the French Accounting Court, the OECD and several French and foreign institutional orprofessional entities. In total, more than 70 meetings and hearings took place on issues as varied as competitiveness andinvestment, professional training and youth employment.

THE UNÉDIC BOARD

1 23

4 56

7 8 910 11

President: Jean-François Pilliard (Medef) (7) Vice-President: Patricia Ferrand (CFDT) (8) 2nd Vice-President: Geneviève Roy (CGPME) (4)3rd Vice-President: Yves Razzoli (CFTC) (5)Treasurer: Marie-Françoise Leflon (CFE-CGC) (3) Assistant Treasurer: Patrick Liebus (UPA) (6)Assessors:Catherine Martin (Medef) (10)Benoît Roger-Vasselin (Medef) (11)Éric Aubin (CGT) (2)Stéphane Lardy (CGT-FO) (9)State Controller: Élisabeth Kahn (1)


AC - Unemployment insuranceMandatory insurance scheme againstinvoluntary job loss for private and publicsector (under certain conditions) employees,the management of which is entrusted to thesocial partners.

AcossCentral Agency of Social Security Organisations,Urssaf.

Reduced activityArrangement enabling a jobseeker to combineallowances and payments under certainconditions, while continuing to look foremployment.

ADRThe compensatory allowance upon re-deployment is granted to jobseekers over 50,or those who have been receiving benefits forat least a year, who take up a job that is lowerpaid by at least 15% than their previous job.

AGSAssociation for the Management of theEmployee Debt Guarantee Scheme.

APLDLong-term reduced activity is an arrangementthat enables employees to keep their job and75% of their pay in case of a reduction in work.This short-time working measure is financedby the Unemployment insurance scheme andthe State.

Appendix 4Appendix 4 to the convention onUnemployment insurance includes the return-to-work assistance and unemployment benefitprovisions for employees with occasional work(without distinction as to the nature of theactivity) and temporary employees fromtemporary employment companies.

Appendices 8 and 10Appendices 8 and 10 to the convention onUnemployment insurance include the return-to-work assistance and unemployment benefitprovisions of sound recording, cinematographicand audiovisual production, radio, broadcastingand entertainment workers and techniciansand entertainers.

ANIThe national interprofessional agreementsarise from the negotiation of the socialpartners representing employers andemployees. The convention on Unemploymentinsurance is generally preceded by an ANIwhich determines the main guidelines thereof(ANI of 25 March 2011 on unemploymentbenefit).

ARCEAssistance for jobseekers taking over orcreating a company, in the form of the paymentin two instalments of a portion of theUnemployment insurance benefits (45%). This

assistance in the form of capital is conditionalon the State assistance for unemployed peoplecreating or taking over a company (ACCRE).

AREUnemployment benefit is the allowancegranted by the Unemployment insurancescheme. It is granted to employees affiliatedto the Unemployment insurance scheme whocan furnish proof of a minimum period of workprior to involuntarily losing their job. Theconvention on Unemployment insurance setsthis period at 122 days during the last 28months, for the under 50s.

ASPThe improved job security allowance is foremployees made redundant for economicreasons and who opted for a reinforcedsupport arrangement, the improved jobsecurity contract (CSP).

ASSThe special solidarity allowance is aimed atjobseekers who have exhausted theirentitlement to ARE within the framework ofthe Unemployment insurance scheme whofulfil special conditions. This arrangement isfinanced by the State.

Jobseeker categories• Category A: jobseekers required to engage inpositive job searches, unemployed• Category B: jobseekers required to engage inpositive job searches, carrying out a short-termreduced activity• Category C: jobseekers required to engage inpositive job searches, carrying out a long-termreduced activity • Category D: jobseekers not required to engagein positive job searches (due to a workexperience programme, a training course,illness etc.), unemployed• Category E: jobseekers not required to engagein positive job searches, in employment (forexample: recipients of assisted contracts).

CCMSAThe Central Fund for the Agricultural MutualInsurance Scheme is in charge of managingsocial protection for the agricultural sector.

CCVRPOrganisation for the collection of Social Securityand Unemployment insurance contributionsfor sales representatives.

Convention on Unemployment insurance Arising from the negotiation of the socialpartners, the convention determines theconditions for indemnification of jobseekersand the amount of contributions of employersand employees.

State/Unédic/Pôle emploi tripartiteagreementThe tripartite agreement sets the budget and theoperational objectives of Pôle emploi for threeyears according to the guidelines set out by Unédicand the State, joint financers of Pôle emploi.

CRPThe Personal Redeployment Agreement wasan arrangement for employees maderedundant for economic reasons. In force until31st August 2011, its beneficiaries could accessa twelve-month personalised training andsupport programme in order to facilitate theirreturn to work.

CSPThe improved job security contract is aredeployment arrangement for employeesmade redundant for economic reasons fromcompanies with fewer than 1,000 people (orcompanies of any size placed in compulsoryliquidation). Jointly financed by the State andUnédic, it merged the CRP and the CTP: itreplaces both arrangements since 1stSeptember 2011.

CTPThe Occupation Transition Contract wasimplemented on an experimental basis incertain employment areas instead of the CRP.Until 31st August 2011, it enabled peopleaffected by a redundancy for economic reasonsfrom companies with fewer than 1,000 peopleto get personalised support in order to speedup their return to work.

DEFM(Month-end jobseeker)Person registered with Pôle emploi and havingan outstanding claim on the last day of themonth.

DREThe job search exemption, repealed in 2012,exempts beneficiaries of ARE and ASS who areover 60, early retirees and recipients of theEquivalent Pension Allowance (AER), from theobligation to look for work.

IPRThe Joint Regional Body brings together on aregional level the social partners representingemployers and employees. This body carriesout a local activity guidance mission for Pôleemploi, and has jurisdiction to rule on certainindividual cases of jobseekers or employers.

PPAEThe Personalised Plan for AccessingEmployment is drawn up by Pôle emploifollowing registration as a jobseeker. It aims toset out a pathway for a return to work adaptedto the jobseeker’s situation, particularly interms of length of time out of work, training,qualifications, acquired knowledge or skills, etc.

Long-term unemployment rateThe long-term unemployment rate is a newstatistical indicator produced by Unédic which,among other things, makes it possible tomeasure the influence of the jobseeker’scharacteristics (age, level of training, sector ofactivity) with regard to their duration ofunemployment before a sustainable exit.

GLOS

SARY

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Unédic - Unemployement Insurance 2011 : annual report

Economy & Finance

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