EMCC European Monitoring Centre on Change

Professional security contract

France
Phase: Management
Type:
  • Advice
  • Fostering mobility
  • Income support for workers
  • Provision of labour market information
  • Start-up support
  • Support of business transfers
  • Training
Last modified: 09 September, 2020
Native name:

Contrat de sécurisation professionnelle, CSP

English name:

Professional security contract

Coverage/Eligibility

Coverage extends to workers made redundant from companies with fewer than 1,000 employees.

To be eligible for such contracts, worker must, whatever his/her seniority in the company : 

  • fulfil the conditions to receive an unemployment allowance
  • be under the retirement age,
  • be resident in France
  • be physically fit to perform the job.

Main characteristics

The professional security contract (CSP) was introduced by Law n°2011-893 of 28 July 2011 and entered into force on 1 September 2011. It replaces the former 'contrat de transition professionnelle - CTP' (professional transition contract) and 'convention de reclassement personnalisé - CRP' (personalised re-employment agreement). Amendments to the rules applicable to this instrument were passed in February 2015, especially to speed up employee redeployment. Since 2015, the 2015 reform, that is the social partners' agreement related to the professional security contract of 26 January 2015, was amended several times. As a result, the measure is extended up to 30 June 2021. Very recently, in order to take into account the global reform of the unemployment insurance applicable since 1 November 2019, a new amendment was made to the 2015 agreement through a social partners' agreement concluded on 8 January 2020. This agreement is still to be approved by the government. Its main provision is to maintain the  minimum work duration  to benefit from the CSP at four months on a reference period of 24 months, that is less than new conditions to receive unemployment allowance planned by the 2019 reform (six months work during a reference period of 24 months).

The CSP consists in redeployment services provided by the French public employment agency to redundant employees for up to 12 months. During this period, employees with at least one year seniority are entitled to an allowance (ASP) which represents 75% of their basic daily wage. Employees with less than one year seniority are only entitled to the regular, and lower, unemployment allowance (ARE). If, at the end of this 12-month period, employees are still seeking permanent employment, they are entitled to unemployment indemnities (Allocation d’Aide au Retour à l’Emploi - ARE allocations). Following the 2015 reform, employees finding a new job meeting specific characteristics (open-ended employment contract, fixed-term contract of at least six months duration) before the end of a 10-months period, are entitled to benefit from a redeployment grant (Prime de reclassement) equal to 50% of the allowance the employee would have been entitled to receive until the end of the CSP.

The redeployment services include for example retraining or support for business creation or takeover. It starts with a pre-assessment phase in order to define a career development plan, taking into account the regional labour market situation, and it also includes personalised support measures such as skills assessment, social welfare, and work placements (not exceeding six months in the aggregate). 

Employers are obliged to offer this redeployment scheme to all employees who are about to be dismissed for economic reasons. As soon as they receive the employer's proposal, employees have 21 days to accept or refuse it. The employer has to contribute a sum amounting to the gross salaries (plus the workers' social contributions) in line with the redundancy notice (depending on the sector and fixed in the collective framework agreement) per redundant employee. If employers fail to do so, they are liable to pay to the public employment service a specific contribution corresponding to two months of gross salary or three months of gross salary if the employee agrees to avail of the CSP offered by the public employment agency.

Funding

  • National funds
  • Employer
  • Companies

Involved actors

National government
Funding
Public employment services
Contract is signed with the PES
Other
The PES subcontracts some support measures to private bodies.

Effectiveness

According to the French Public Employment Services (UNEDIC), at the end of September 2019, an average of 49,500 people benefited from the measure. This number has been on a downward trend since mid-2015, due to a drop in the number of people entering the scheme (an average of 6,000 people per month since the beginning of 2018 compared with 9,200 in 2015). This drop is linked to the decrease in the number of registrations as job seeker following an economic layoff. Nevertheless, the number has stabilised since the end of 2017.

A study conducted in 2016 (see sources below) showed that 18 months after their registration in the CSP, 53% of the redundant employees were in employment: 24% in permanent contracts, 21% in fixed-term contracts, 7% had created their own businesses. This rate is similar to that of the other job seekers, but all things being equal, CSP beneficiaries are 1.4 times more likely to be in employment than other job seekers. However, it has to be noted that age remained a determinant variable and negatively affected job search: senior job seekers (50+) had the lower odds (0.7) compared with the 30-39 category, while the higher benefits were for the younger ones (under 30). This has to be kept in mind knowing that among economic redundancies, senior job seekers are over-represented (DARES, 2011). The persistence rate of unemployment (the percentage of unemployed still registered, measured 6, 12 and 24 months after the first registration) is 25% for the 45-49, 34% for the 50-54, 48% for the 55-59 and 73% for the 60+ (IGAS, 2013).

An assessment published by the UNEDIC (unemployment insurance body - see source below) in May 2018 shows that since the reform passed in 2015, more employees find a new job and leave the CSP sooner: in 9.5 months on average for people entering the scheme in 2015 and 2016, compared to 10.6 months on average for those entering the scheme in 2014. This evolution seems to be partially linked to the creation of the above-mentioned redeployment grant (prime de reclassement). Besides, CSP beneficiaries have more often benefited from training than other job seekers (about 18% each month from the 5th to the 18th month of the study vs. 5% for other job seekers). However, 80% of the beneficiaries declare having made at least ‘one concession’ (job location, salary, job qualification, etc.) in order to find employment.

According to DARES (2020), the 2015 reform fostered the return to employment of CSP beneficiaries: within 24 months after joining the scheme, 67% of the beneficiaries of the "2015 CSP" became employed, compared with 62% under the previous regulation. This acceleration in access to employment is more marked in the first ten months of the scheme, a period during which the job seeker can, since 2015, obtain the payment of a redeployment grant if he or she finds sustainable employment. Those positive assessments explain the extension of the measure decided by social partners up to June 2021.

In 2013, an assessment showed that 79% of those availing of the measure were from small companies with fewer than 50 employees. The average time spent in the scheme was eight months. Of those who completed the measure, 54% were employed on an open-ended contract and 2% remained unemployed, the remaining being employed on fixed-term contracts, on training, etc.

Strengths

Strengths of the CSP include: 

  • the amount of the allowance received, which is the main motivation to accept the CSP;
  • it ensures professional continuity;
  • all redeployment services are offered by the public employment service (CSP replaced CTP and CRP);
  • positive effects of personalised support measures;
  • facilitated access to training.

Weaknesses

Some criticisms were addressed by trade unions as to the quality of the reclassification offered and claimed that the CSP responds to a wish to artificially decrease the unemployment rate as workers are considered as vocational trainees during the CSP and are not registered as unemployed. 

 

Examples

Transitio-CTP Morlaix.
Sources
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