French Presidential Hopeful Édouard Philippe Proposes Unemployment Benefit Cuts, End to 'Open Bar' Sick Leave

Édouard Philippe, a candidate in the upcoming French presidential election, is proposing significant reforms to the country's social safety net, including a reduction in unemployment benefits and stricter controls on sick leave. Speaking ahead of a debate with rival candidates at Medef, the French employers' association, Philippe outlined his vision to reassure businesses and address what he terms a 'worrying drift' in current policies.

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On unemployment insurance, my direction is to do like Germany. Twelve months of maximum compensation for those under 50

Philippe intends to shorten the maximum duration of unemployment benefits to 12 months for individuals under 50 years old, a move he likens to Germany's system. This proposal comes despite recent reforms that already reduced benefit durations. The current maximum is 18 months for those under 55, with further changes planned for September 2026. Notably, unemployment has continued to rise for six consecutive quarters, even with successive tightening of eligibility conditions.

Furthermore, Philippe is targeting what he calls the 'open bar' on work stoppages due to illness. He highlighted a nearly 40% increase in sick leave between 2019 and 2025, estimating the annual cost at 17 billion euros. He argues this trend not only strains public finances but also negatively impacts business productivity and workplace morale.

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A worrying drift

To address this, Philippe suggests adopting a model similar to Spain's, where longer sick leaves are better compensated, but short-term absences face stricter conditions. He advocates for reinforcing public waiting periods, meaning the first one or two days of a short sick leave would not be compensated. He also proposed creating an 'incompressible' period of three to six months between taking sick leave and opting for a negotiated departure, aiming to combat potential abuses.

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not simply for the accounts - it is, to the tune of 17 billion euros (annual) - but also for the activity of companies and administrations and for the workplace atmosphere

Philippe also reassured businesses about the continuity of the Dutreil pact, a tax incentive for family business transmissions. He emphasized its importance in providing stability for family-owned enterprises looking to pass on their businesses to the next generation.

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In Spain, long leaves are better compensated. On the other hand, we are tougher on short leaves. We can draw inspiration from this logic and, for example, strengthen public waiting days: the first day, the first two days will not be compensated when it is a punctual leave