The apprenticeship scheme, known as the '1 Young Person, 1 Solution' plan, is worth around €1 billion and is specifically intended to help young people enter the labour market in the aftermath of the worst economic turmoil since the 2008 global crash.
What is the 1 Young Person, 1 Solution plan?
The 1 Young Person, 1 Solution plan is valued at around €1 billion. Under the plan, state funding will be available to French businesses to hire workers under 26 years of age into an apprenticeship contract. The contract will allow the young employee to undergo work-study training within a company, gaining vital professional work experience while earning money and contributing to France's economic recovery.
The scheme enables employers to hire younger employees in two ways, receiving two different levels of state funding for doing so:
- Employers that hire employees younger than 26 years old will receive €4,000 for one year of employment, payable at €1,167 per quarter.
- Employees that hire employees into a work-study apprenticeship role will receive €5,000 for workers younger than 18 years old (minors) and €8,000 for workers between 18 and 26 years old. The funding is applicable to contracts signed between 1 July 2020 and 28 February 2021.
In order to access work-study apprenticeship scheme funding, the following employment conditions must be met:
- Employment contracts must be signed between 1 July 2020 and 28 February 2021.
- Employment contracts must be permanent or fixed term lasting 3 months or more.
- The employee must remain on the employer’s payroll for 3 months from their first day of employment.
- The diploma or professional certification that the employee is working towards as part of their apprenticeship contract must not exceed Bac +5 level.
- The employer must be up to date with their tax reporting and payment obligations.
- The employer does not benefit from any other state assistance for the apprentice employee.
- The employer has not dismissed for economic reasons an employee who was part of the apprenticeship scheme.
How is the apprenticeship funding paid?
The apprenticeship funding is managed by France’s Service and Payment Agency (ASP). Employers should apply through an online form on the ASP website within 4 months of the start of the apprentice contract. Once the application has been received and granted, apprenticeship begin payments begin when:
- The employment contract has been signed.
- The employer submits their monthly nominative social declaration (DSN) with information about their new apprenticeship hiring(s).
Apprenticeship funding will be paid each month during the first 12 months of the apprenticeship contract. The €8,000 funding level, for example, will be paid in €666.67 monthly amounts.
For more information on coronavirus support for employers and employees browse activpayroll’s latest news page. To learn more about French tax, social security, and payroll, explore our dedicated France Global Insight Guide.