Early parliamentary elections 2024: Employment focus on the candidate’s proposals
Discover the analysis of our lawyer Claire Tergeman.
Following the dissolution of the French National Assembly pronounced on June 9, 2024 by the French President, Emmanuel Macron, the French citizens are called upon to elect the 577 deputies who will represent them. From the breakaway program promised by the “Nouveau Front Populaire” in the event of cohabitation, to the measures announced by Prime Minister, Gabriel Attal, to extend the measures pursued by the presidential camp, via the project of “Les Républicains” and the “Rassemblement National”, here’s everything you need to know about the main social measures proposed by the candidates before going to the polls for the second round of voting on July 7, 2024.
Ensemble pour la République (presidential majority)
Following on from what has been legislated previously, the presidential camp is making the following proposals:
1. Pensions
The presidential majority declares that it will maintain the pension reform adopted in 2023, which provides for the legal retirement age to be raised from 62 to 64. In addition, pension increases would be indexed to inflation.
2. Employment and unemployment insurance
It was initially planned to introduce a new unemployment insurance reform by decree on July 1 – between the two rounds of voting – which would both extend the current rules until November 30, 2024, and tighten compensation conditions from December 1, 2024.
On the evening of the results of the first round of early parliamentary elections on June 30, 2024, Prime Minister Gabriel Attal decided to suspend implementation of the unemployment insurance reform. However, the reform has not been abandoned at this stage. Pending the second round of legislative elections, the current compensation rules have been identically extended until July 31, 2024 by a decree dated June 30, 2024. This decree avoids any legal vacuum with regard to the continued payment of unemployment insurance benefits and the collection of related contributions from July 1, 2024.
3. Wages and social security contributions
In order to increase purchasing power, the presidential camp is proposing to increase the so-called “Macron” bonus by raising the annual ceiling for the value-sharing bonus (PPV) to 10,000 euros, which would once again be exempt from social security contributions and tax, and opening up the possibility for companies to pay this bonus monthly.
It is also proposed that companies increase salaries between the minimum wage and 2,500 euros net per month by leveraging social security contributions.
4. Working conditions and social dialogue
4. Working conditions and social dialogue
Ensemble pour la République intends to organise a conference with the social partners to draw up a plan to combat accidents in the workplace.
It is also proposed to experiment with a four-day week for employees who cannot telework.
We should also note the introduction of birth leave, which would be better compensated than parental leave, so that both parents can be with their child for three months.
5. Social Security matter
As part of the 2025 budget, the President’s camp is proposing to introduce a 1 euro-a-day health insurance scheme for pensioners, students, the self-employed and jobseekers who have no health insurance.
Les Républicains (LR)
Les Republicains have unveiled the following programme:
1. Pensions
The Republicains do not intend to relaunch this issue and intend to maintain the pension reform as adopted in 2023 by the presidential majority.
2. Employment and unemployment insurance
The Republicains do not intend to touch the unemployment insurance reform, whose decree was due to come into force on 1 July 2024 but which was finally put on hold by the executive on the evening of the first round of the early legislative elections.
3. Wages and social security contributions
To encourage wage increases, the Republicains are proposing a reduction in social security contributions for employees earning less than three times the minimum wage, thereby enabling employers to increase their employees’ take-home pay.
4. Working conditions and social dialogue
The Republicains propose to raise the main obligations of companies from the threshold of 50 employees to the European threshold of 250 employees and to extend the period of 5 years to comply with the new obligations when they cross a threshold of employees.
Nouveau Front Populaire (Le Parti Communiste Français, La France Insoumise, Les Écologistes, Le Parti Socialiste)
The Nouveau Front Populaire focuses on the following main social measures:
1. Pensions
The Nouveau Front Populaire has announced an immediate repeal of the pension reform adopted in 2023 to raise the statutory retirement age to 64.
Their program goes even further, aiming to restore the statutory retirement age to 60.
It also plans to raise the minimum contributory pension to the level of the SMIC and the minimum old-age pension to the level of the poverty line.
In addition, the RSA would be used to validate quarters towards retirement. Finally, the amount of pensions would be indexed to salaries.
2. Employment and Unemployment Insurance
The Nouveau Front Populaire wants the unemployment insurance reform to be cancelled immediately, if it is implemented.
The reform making the RSA (“Revenu de Solidarité Active”) conditional on at least 15 hours’ work a week would be repealed.
3. Wages and social security contributions
The Nouveau Front Populaire proposes raising the monthly minimum wage (currently €1,398.70 net) to €1,600 net, indexing wages to inflation and raising the disabled adults’ allowance (“Allocation aux Adultes Handicapés”) to the level of the minimum wage.
It is also proposed to organize a major social conference on wages, employment and qualifications.
The Nouveau Front Populaire has also announced that it intends to generate new revenue by increasing social security contributions. Dividends, profit-sharing, employee savings, share buy-backs and overtime would be subject to contributions. In addition, pension contributions would increase by 0.25 points per year for five years, employers’ contributions would be modulated and a surcharge would be introduced on high salaries.
4. Working conditions and social dialogue
The Nouveau Front Populaire is also proposing to organise a national conference on working conditions and arduous working hours, with a view in particular to moving to a 32-week working week for arduous or night jobs. This could then be extended through collective bargaining.
Menstrual leave would also be introduced in all companies and administrations.
In terms of staff representative bodies, the Health, Safety and Working Conditions Committee (“CHSCT”) would be re-established.
5. Employee participation on board of directors
The Nouveau Front Populaire proposes to reserve for employees at least one third of the seats on boards of directors and to create a right of pre-emption to allow employees to take over their company in the form of a cooperative.
Rassemblement National (RN)
In the event of victory, the Rassemblement National plans to implement a number of measures immediately after the second round of the early legislative elections and others from this autumn onwards:
1. Pensions
The Rassemblement National proposes to repeal, from the autumn, the pension reform adopted in 2023.
The Rassemblement National also proposes to allow those who began working before the age of 20 and have completed forty years of service to retire at the age of 60.
Finally, it proposes to gradually reduce the statutory retirement age from 64 to 62, following an audit of public finances.
2. Employment and unemployment insurance
The Rassemblement National has announced its intention to repeal the government’s planned reform of unemployment insurance as early as summer 2024.
The Rassemblement National also intends to ban dual nationals from sensitive jobs, particularly in the security and defence sectors.
Employers of illegal workers would also be punished more severely.
3. Wages and social security contributions
To encourage employers to increase wages, the Rassemblement National would like to allow companies to be exempted from paying employer contributions up to a limit of 10% for five years, up to three times the SMIC (i.e. salaries of up to €5,300 gross per month).
4. Working conditions and social dialogue
The Rassemblement National has announced that it will convene a social conference on wages and working conditions at the beginning of its term of office.
Without giving any further details, the Rassemblement National also announced its intention to step up support for carers.
5. Social security matter
The Rassemblement National wishes to replace state medical aid (“l’Aide Médicale d’Etat”) with vital emergency aid.
In addition, social assistance would be reserved for French nationals, while access to non-contributory social benefits such as the RSA would be conditional on five years’ work in France.
