At a glance
- The long-term partial activity scheme has now been implemented by Decree No. 2025-338 of 14 April 2025.
- The Decree specifies the mandatory provisions of the collective agreement, or the DUE required to implement the scheme.
- The Decree also sets the maximum reduction in working hours (which cannot exceed 40%) under the scheme, the amount of compensation payable to employees, and the allowance receivable by the employer.
The Finance Act for 2025 of 14 February 2025, introduced a new specific partial activity / furlough scheme called 'long-term partial activity for recovery' (APLD-R). Strongly inspired by the long-term partial activity (APLD) scheme, the APLD-R is temporary and intended to ensure that employees remain in employment in companies facing a sustained reduction in activity that is not likely to jeopardize their long-term viability. Thus, like the common law partial activity scheme, APLD-R allows companies to reduce their employees' working hours by paying them a lower allowance than their usual salary and to receive, in the form of an allowance, a partial reimbursement of this allowance from the State.
In order to be fully applicable, the scheme required a decree specifying, in particular, the mandatory elements to be agreed or unilaterally decided, as well as the amount of compensation paid to the employee and the allowance paid to the employer. The relevant decree was published in the Official Journal on 15 April (decree no. 2025-338 of 14 April 2025) and applies from 16 April 2025.
The decree provides that a collective agreement must include:
- A preamble presenting an assessment of the economic situation, business prospects, and skills development needs of the establishment, company, group, or industry.
- The start date and duration of the APLD-R, within a limit of 24 consecutive months.
- The maximum reduction in working hours below the legal working hours, or where lower, the collective working hours or contractual working hours for the period in question.
- Commitments regarding employment and vocational training.
- Procedures for informing the signatory trade unions and employee representative bodies about the implementation of the agreement, with this information to be provided at least every three months.
The reduction in working hours provided for in the agreement or the DUE may not exceed 40% of legal working hours, or, where lower, of the collective working hours or the working hours stipulated in the employment contract.
The employer must inform:
- Employees covered by the agreement or the DUE of the commitments it has made regarding job retention and vocational training.
- The CSE, where the company has at least 50 employees.
Authorization to use the APLD-R is granted for a period of six months. It may be renewed for further periods of six months, up to a maximum of 18 consecutive or non-consecutive months over a period of 24 consecutive months.
The 24-month period begins on a date chosen by the employer and set by a validation or approval decision. This date falls between the first day of the calendar month in which the request for validation or approval was sent to the administrative authority and the first day of the third calendar month following the submission of this request.
The decree specifies that this date is common to all establishments covered by the same collective agreement or unilateral decision.
Employees placed on APLD-R receive hourly compensation from their employer equal to 70% of their gross pay calculated on the basis of paid leave, converted to an hourly rate based on the legal working hours applicable in the company, or, if lower, the collective working hours or the hours stipulated in the employment contract.
The amount of the allowance paid by the State to the employer is equal to 60% of an employee's previous gross remuneration, up to a maximum of 4.5 times the minimum wage (SMIC), ie EUR32.08.
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