Generation contract: €4,000 a year for hiring a young person on a permanent contract and keeping an older worker

The Act of 1 March 2013 created the generation contract. Companies with fewer than 300 employees (subject to an agreement or action plan for those with 50 to 299 employees) receive €4,000 a year for three years for each pair combining the permanent hiring of a young person under 26 and the retention of an employee aged 57 or over (or hired at 55 or over): €2,000 for the young person and €2,000 for the older employee, paid by Pôle emploi. Companies with 300 or more employees must be covered by an agreement or action plan or face a penalty. Hires made since 1 January 2013 are eligible.