Structural reformEndedEmployment and contributionsNational

Employment support contract (CAE) and reformed employment initiative contract (CIE)

The social cohesion programming Act of 18 January 2005 replaces the solidarity-employment and consolidated-employment contracts with the employment support contract (CAE, Art. 44), reserved for non-market employers, and reforms the employment initiative contract (CIE, Art. 45) for the market sector. The CAE is a fixed-term contract of at least six months and at least 20 hours a week, paid at least the hourly minimum wage; the State covers part of the cost. Decree No. 2005-243 of 17 March 2005 caps State aid at 95% of the gross hourly minimum wage for the CAE and 47% for the CIE. In the overseas departments, the former contracts remain applicable until 31 December 2005 (Art. 47).

Measure originators

InitiatorGVT
Jean-Louis Borloo
Gouvernement
Impact on public finances

No official estimate found for this measure.

Effective date
19 March 2005

Measure impact

Jobless people facing barriers to employment can be hired on subsidised contracts: the State covers up to 95% of the hourly minimum wage for a public or non-profit employer (CAE) and up to 47% for a company (CIE).

Official references

Law number: Loi n° 2005-32 du 18 janvier 2005, art. 43 à 47 ; décret n° 2005-243 du 17 mars 2005
Official Journal: JORF n° 15 du 19 janvier 2005

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%
4 / 4 steps
Completed
19 March 2005

Entry into force

Application

Immédiate ou à la date prévue

Entrée en vigueur du décret d'application : conclusion des premiers CAE et CIE nouvelle formule.
Completed
18 March 2005

Publication in Official Journal

Publication
Publication du décret n° 2005-243 du 17 mars 2005 relatif aux contrats initiative-emploi et aux contrats d'accompagnement dans l'emploi (JO n° 65 du 18 mars 2005).
Completed
18 January 2005

President of the Republic signature

Promulgation

Publication au Journal officiel

Promulgation de la loi n° 2005-32 du 18 janvier 2005 de programmation pour la cohésion sociale, publiée au Journal officiel n° 15 du 19 janvier 2005.
Completed
13 January 2005

Possible referral to Constitutional Council

Constitutional review

Décision de conformité / censure partielle

Décision du Conseil constitutionnel n° 2004-509 DC du 13 janvier 2005 sur la loi de programmation pour la cohésion sociale.