Launching of a new government-subsidized contract for young people: the CIE starter
(French: contrat initiative d’emploi= employment initiative contract)
A new subsidized contract is proposed to employers of the market sector hiring young people under 30 years in employment difficulties. It contains a financial aid fixed at 45% of the hourly minimum wage.
There is a new instrument in the panoply of insertion contracts including a financial support: the CIE-starter contract.
The state envisages the signature of 13 000 starter contracts in 2015.
A new mechanism – who is concerned?
This contract exclusively addresses to young people under 30 years without employment, encountering particular social, professional or employment access difficulties.
They have to meet the following requirements:
- Reside in a neighbourhood considered prioritised by the politics of the city;
- Earn the French social activity income (RSA);
- Being long-term job seeker;
- Being recognised as disabled worker;
- Having been supported within the program “a second chance”;
- Or having profited of a future job in the non-market sector
Only employer of the market sector can conclude a CIE-starter contract.
We remind that only employers being concerned by the application field of the unemployment insurance, and employer of maritime fishing and groupings for insertion and qualification are involved.
The working contract: a unique insertion contract
The concluded working contract is governed by the scheme of the unique insertion contract: it is a fixed-term or permanent contract in full or part time, with at least 20 weekly working hours.
The employee perceives remuneration which is at least equal to the minimum wage or to the conventional minimum.
He or she has to be entitled for assistance and training destined to promote access to a stable employment.
Financial support: the same amount for the entire territory
The only effective difference from the single inclusion contract “of common law” is the amount of the financial support provided by the CIE-starter.
In the market sector, the single insertion contract creates a right for a support which amount is fixed every year by the regional prefect, according to certain criteria, and which support amount cannot exceed 47 % of the hourly minimum wage rate. In practice, the amount of the support is often inferior to this rate.
The CIE-starter includes a fix support which is equal on the entire territory: 45% of the hourly gross minimum wage. This support can notably be combined with the general reduction of contributions for low wages (Fillon reduction) and with the tax credit for employment competitiveness.
For example, regarding a fixed-term contract of 12 month in full-time in a company with at least 20 employees, the approximate amount of the support would be the following:
- Monthly gross minimum wage: 1 457,52 €
- Employeurs’ contributions: 592,20 €
- Minimum wage including employers’ contributions: 2 049,72 €
- State support: 655,88 €
- Fillon reduction: 413,21 €
- Remaining charge for the employer: 980,63 €
Which approach convenes for the employer?
An employer wishing to hire under the CIE-starter system has to approach to the competent prescription organism: the French employment agency “Pôle Emploi”, local missions, “Cap employ” for disabled workers or the general counsel for the recipients of the RSA.
Once the candidate is accepted, the employer fills out a finance assistance application which he transmits to the prescription organism.
When the support is granted, the parties can sign the working contract.
In order to receive financial support, the employer addresses, in electronic or paper form, every month an attendance certificate for the employee to the service and payment agency.