We often tend to think that in France, all decisions are taken by the Government, after possible votes in Parliament. We too often forget that in a certain number of areas, the social partners have their say, and even have the power to outline the contours of this or that measure. This is particularly the case for certain agreements having a direct impact on retirees and more generally seniors aged 60 and over.
This is how at Unedic headquarters, employers and unions finalized an agreement on November 14 relating to the employment of seniors and the retirement of employees. Part of these measures should therefore come into force from 2025. They are part of a context where the employment rate of 60 – 64 year olds remains very low in France, even though the pension reform adopted last year provides for to raise the legal departure age.
The main measure provided for by the compromise adopted by the social partners a few days ago is the creation of an experience enhancement contract (CVE) intended for job seekers over 60 years old. When hiring, the beneficiary of this CVE must specify to their employer the age at which they can claim a full pension. Once reaching this age, the senior will see their contract automatically terminated. On the other hand, contrary to initial hopes, the social partners did not want to commit to a system to reduce social charges, nor to a salary supplement paid by Unedic. These improvements, which would make the measure more effective but also more expensive, are postponed until 2027.
The social partners have also decided to relaunch progressive retirement which has not really enjoyed great success in France: it only concerns around 27,000 people although it has existed since 1988. This system makes it possible to reduce its activity as the approach approaches. of retirement, the reduction in income induced by this choice being compensated by the payment of a fraction of the retirement pension.
The agreement between unions and employers provides for the possibility of progressive retirement from the age of 60. A move to 70% part-time, for example, would entitle you to a 30% pension. Provided, however, that you have contributed for at least 150 quarters. Naturally, this transition to gradual retirement requires the agreement of both parties, employee and employer. Companies can in fact, under certain conditions, refuse to allow employees to reduce their working hours.
These measures will have to be transposed into a bill which will have to be examined in Parliament after signature by the social partners. The impact of this text on the labor market and the employment of seniors is, in any case, still difficult to assess to date. Its effectiveness will depend above all on the will of companies, very often divided between the fear of costs and the lack of flexibility of seniors on the one hand, and the wealth of skills of these experienced workers on the other.
