Last night, the business center at the airport hosted an information meeting on the “new hiring contract” that has recently emerged in the French job market.
“To date, more than 2000 CNE contracts have been finalized by companies in the Alpes-Maritimes,” said Mr. Pastorini, a representative of URSSAF, demonstrating with figures that this new initiative has been strongly adopted by local businesses.
What is a “New Hiring Contract”?
It is a contract available to all businesses or associations employing fewer than 20 workers. The CNE is a special type of permanent contract (CDI) with simplified termination procedures during the first two years, considered as a period of adaptation and employment consolidation.
The CNE must be established in writing and must include all special provisions applicable during the first two years of the contract.
Unlike a standard indefinite-term contract, terminating a new hiring contract does not require a reason for termination, and a simple registered letter is sufficient to end the contract.
If the contract is terminated by the employer, except in cases of serious misconduct, the employee is entitled to compensation of 8% of their gross salary. The employer must also pay a 2% contribution to the Assedic.
The Dark Side of the CNE
Indeed, the new hiring contract seems to be a new solution to eradicating the pervasive unemployment across the national territory, but unfortunately, not everyone views the arrival of this new contract favorably.
“We created five CNEs in our company, and two of them have encountered problems inherent to this contract. The first was denied a bank loan, while the second could not secure an apartment rental because they were on a CNE,” a human resources manager from a local company highlights an issue that shows, while the CNE is very successful, it still needs to become accepted in society.
So, is it a breath of fresh air for businesses or a heavy burden for employees?
It will certainly take a few months or years to understand the ins and outs of a contract that, while successful, must prove its worth.
Franck Viano
