Faced with a situation that is difficult to resolve, appropriate measures can be taken by the managers of a company. Some opt for the total closure of the company, sending all employees to unemployment. Others opt for a less drastic measure, partial unemployment, in order to overcome the slope. Partial unemployment follows a specific procedure.
A reduction of the company’s activities
Partial unemployment is a measure taken following a significant drop in the activities of a company. This situation is caused by an event that disrupts the life of the company and the life of the nation. A company can, for example, be confronted with a substantial decrease in the supply of raw materials in a sector of activity. A company can also be confronted with an exceptional event leading to an economic dysfunction on a national or even planetary level. In practice, partial unemployment means a reduction in the working hours of employees. In extreme cases, it can even lead to a total closure of the company.
People affected by partial unemployment
Partial unemployment can be applied collectively to all the company’s personnel. In general, employees with permanent and temporary contracts are eligible for part-time work. The measure also applies to temporary workers and trainees. For workers with a fixed-term contract, the application of the reduction of working hours is a difficult concept to manage. In addition, self-employed workers are not eligible for partial unemployment benefits. However, they may be eligible for assistance in case of a national disaster affecting the country’s economic activities.
The rights of partial unemployed workers
Partial unemployed employees are entitled to a compensation paid by the company with a state allowance. Workers paid at the GMI (guaranteed minimum income) and employees in training receive the equivalent of 100% of their salary. For the other categories, they can get 70% of their gross pay, 84% of their net pay. During the period of partial unemployment, there is no breach, only a suspension of contract. Workers must therefore take this into account when taking steps. Always refer to the contract before engaging in another activity to avoid litigation.