Associations and partial activity, what rules?

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Associations have access to the partial activity scheme, as well as to other business support measures. Since the ordinances of March 2020, associations have assimilated to companies in the context of the health crisis. For good reason, the associative world accounts for 10% of private employment. They have 1.9 million employees in all sectors. Thus, they participate, like companies, in the creation of wealth.

It is estimated that associations and foundations manage more than 22 billion euros of financial assets, in addition to producing goods and services. Two years after these orders, the government maintains this aid to associations under conditions similar to companies. It nevertheless takes into account the specifics of association status.

Partial activity still in force in 2022

The conditions more favourable than the ordinary law regime are still present until the end of March. Two decrees extend the allowance to 70% of the previous gross remuneration. This extension is limited to the sectors affected:

  • in an establishment receiving the public subject to a total or partial administrative closure taken to limit the spread of the Covid-19 epidemic;
  • in an establishment located in a territory subject to special restrictions (curfew, gauges in establishments open to the public, etc.) adopted pursuant to the state of health emergency and suffering a drop in turnover of at least 60%;

In addition, thecompanies in protected and related sectors (tourism, hotels, restaurants, sport, culture, air transport, events, etc.) a sharp drop in turnover of at least 65% no longer benefit from the “zero remains to be charged” scheme if they do not fall into one of these two situations.

Partial activity, associations eligible for the scheme

Partial activity, which benefited nearly 9 million employees at the height of the epidemic, has saved hundreds of thousands of jobs. We will therefore continue to support businesses affected by the crisis for as long as necessary. Protecting jobs is the best thing we can do for our country.

Elisabeth Borne, Minister of Labour, Employment and Insertion.

As part of the recovery plan,associations are considered to be economically active enterprises, if they employ salaried staff, are subject to tax obligations, or benefit from public funds.

More concretely, associations can request partial activity or LDPA in several situations. First, if their activity has stopped following Decree No. 2020-293 of 23 March 2020; if it has been reduced or suspended in the light of the economic situation or for reasons of supply; if it cannot continue because it cannot properly protect employees.

On the other hand, other associations cannot benefit from partial unemployment. These are the same rules as for conventional companies. Thus, when the activity can continue in the present or remote, the device is not accessible.

Understanding partial activity for associations

Specifics of associations: the consideration of public funds in the scheme of partial activity

The scheme of partial unemployment,as well as that of long-term partial activity, does not make a difference between associations and companies. It is open to any structure suffering a loss of activity and turnover, due to the health crisis.

However, the government is aware that associations benefit from additional and different cash inflows from businesses. Therefore, it takes them into account in determining the amount of partial activity assistance.

Cash receipts include public subsidies, contributions, donations, but also, of course, the sale of goods or services. As such, the government seeks to avoid abuse. To do this, it provides two specific conditions for the partial activity of associations.

First, it adjusts partial unemployment for supported jobs. From employment grants, the jobs helped are already receiving government financial assistance. Thus, the partial activity can still be applied but without doubling. The partial activity scheme is therefore calculated only on the share not supported.

Then the government puts in place post-checks. Any association that has received partial activity and other public funds is affected. If it turns out that a portion of the public funds was used to provide aid to associative employment, it is estimated that the combination of these aids and partial activity has enabled it to increase its budget. As such, the association must repay the difference in order to restore balance the following year.

Short-time working conditions

For the rest, the partial activity of associations enjoys the same conditions as companies. The government has already announced that the rates applicable since January will also be valid in March. He hopes to make them evolve in April as long as the health situation improves.

Overall, here are the conditions and rates applicable in March 2021 depending on the industry:

First, companies and associations in the highly affected sectors of tourism, culture, transport, sport and events benefit from 100% partial activity support.

The same is true for administratively closed associations. As long as their closure is the result of an administrative decision, they will continue to benefit from the partial activity without any dependants.

For other sectors, the remaining charge was 15% in March.

The government differentiates between partial activity and long-term partial activity. The applicable rates and duration of aid differ. Thus, it is important to study both formulas to choose the most suitable for the situation of each association. As such, Elisabeth Borne encourages associations to negotiate long-term partial activity agreements (LDAs). Which provides access to partial unemployment for up to 24 months.

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