French assembly approves senior employment contract

The French National Assembly definitively approved, on October 15, a bill easing the hiring of those over 60 through an experimental new contract. The text transposes agreements between unions and employers, including tax exemptions for bosses. It passed with 143 votes to 25.

On Wednesday, October 15, the National Assembly examined and approved a bill transposing several agreements between labor unions and employer organizations. Adopted by the Senate before the summer break, this text marks the first review of the ordinary session by deputies, right after Sébastien Lecornu's general policy statement.

At the bill's core is the creation of a senior CDI called the 'experience valorization contract' (CVE), experimental for five years post-promulgation. Aimed at job seekers aged at least 60 – or from 57 in case of branch agreements –, it gives employers greater flexibility. They can opt for retirement once the employee reaches full pension eligibility, unlike the current rule limiting mandatory retirement to age 70. Employers will also enjoy exemptions on retirement severance pay.

The text strengthens negotiation obligations at branch and company levels on retaining senior workers. It introduces a minor change to unemployment insurance: first-time claimants need only five months of work, down from six, to qualify for benefits. An agreement removing the three-term limit for social and economic committee (CSE) elected officials was approved, addressing a union demand.

Finally, the bill transposes a June 25 agreement between unions and employers to ease professional reconversions, bolstered by a government amendment following partners' complaints in July.

'We have worked well together for the businesses and employees of this country. We will meet again this fall for other important appointments,' celebrated Labor Minister Jean-Pierre Farandou during his first address in the chamber. The vote garnered 143 in favor against 25, all from La France insoumise, on the eve of a censure motion expected to fail without Socialist Party support.

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