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COVID-19: Long Term Part-time Activity

FBA Part-time activity

The “classic” part-time activity system set up in March with the start of the Covid-19 epidemic was modified in June and will be modified again on 1 November. Except for the most affected sectors, the employer’s compensation will be significantly reduced.
However, if the company applies a long-term part-time activity agreement (APLD), it will receive better compensation. A certain amount of formalism is required for its implementation.

> Characteristics of the long-term part-time activity agreement

The APLD is for companies experiencing a lasting shock but with the prospect of a recovery in activity in the medium term.
The APLD agreement makes it possible to reduce working hours by up to 40% compared to the legal duration (50% in exceptional cases).
The employer’s compensation is 60% of the employee’s gross hourly pay, up to a maximum of 4.5 SMIC.
The employee’s compensation is 70% of his or her gross hourly pay, up to a maximum of 4.5 SMIC.
The APLD agreement may cover the entire company or establishment, or only certain activities, to be defined in the agreement.

> Implementation of the long-term part-time activity

In order to use the APLD, either an enterprise or establishment agreement must be negotiated and validated by the administration, or an extended branch agreement must be applied and a unilateral document drawn up, submitted for consultation with the ESC, which must then be approved by the administration.

The company or establishment agreement is concluded in the usual way – with trade union delegates, if there are any, or, if there are none, in accordance with the derogatory arrangements set out in the labour code (employee representatives, authorised employees, etc.).

In VSEs with fewer than 11 employees, as well as those with fewer than 20 employees without an ESC, the employer can conclude an APLD agreement by proposing a draft agreement to the employees, which, if approved by a 2/3 majority of the workforce, will become a company agreement.

> Content of the agreement

The company agreement, or the unilateral document from the employer, which can last up to 24 months, must contain commitments, particularly on employment. Failure to comply with this commitment can lead to the reimbursement of sums received.

The implementation of a long-term part-time activity agreement may be of interest to your company if it is faced with a lasting drop in activity.

If you need further information, please contact us!

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