Covid-19 & Partial Activity – Update

General legal framework

• The partial activity scheme can only be implemented if it has been authorized by the Direccte.
• The following are the cases in which the partial activity scheme can be used:
  1. The economic situation
  2. Supply difficulties
  3. A disaster or exceptionally severe weather
  4. The transformation, restructuring or modernization of the company
  5. Any other exceptional circumstance

Covid-19 epidemic and partial activity

• The Ministry of Labour's Questions/Answers circular of March 17, 2020, outlines various cases eligible for the partial activity scheme in the context of the Covid-19 epidemic, including:
  1. Administrative closure of an establishment;
  2. Massive absence of employees essential to the company's activity, which would be linked to contamination or quarantine;
  3. Temporary interruption of non-essential activities in the situation where public authorities decide to limit travel in order not to worsen the epidemic;
  4. Decrease in activity related to the epidemic in the event of supply difficulties, order cancellations, degradation of sensitive services;
  5. Public transport suspended.

Restrictions under consideration

• It would appear that the following would be eligible for partial unemployment benefits:
  1. Companies that are subject to the closure obligation stipulated by the decree of March 14, 2020, supplemented by the decree of March 15, 2020;
  2. Companies that are unable to use teleworking, to comply with distancing measures or that are facing a massive absence of employees essential to the continuity of activity.
• However, the following would not be eligible for the partial activity scheme:
  1. Businesses authorized to open but which decide to remain closed for health reasons;
  2. Companies that are able to continue their operations, particularly through the use of teleworking.