Introduction

On 7 September 2020 Bill 7661, which introduces a single bonus for promoting apprenticeships in the field of professional training, was submitted to the Chamber of Deputies.

The bill aims to:

  • support training institutions to maintain apprenticeship contracts;
  • persuade training institutions to offer more apprenticeships; and
  • encourage the resumption of apprenticeship contracts that were terminated due to the COVID-19 health crisis.

By 'training institution', the bill means any natural or legal person offering apprenticeships that is entitled to offer training according to Article L 111-1 of the Labour Code.

Value

The bonus awarded to training institutions involved in professional training would be in the form of a tax-exempt fixed-rate subsidy per apprenticeship of:

  • €1,500 for apprenticeship contracts under way as of 15 July 2020;
  • €3,000 for new apprenticeship contracts entered into as of 16 July 2020; and
  • €5,000 for the resumption of apprenticeship contracts terminated since 24 June 2020 in accordance with Article L 111-3(4) of the Labour Code.

For the first two points, the bonus could be increased by €1,500 per contract if, at the time of the application, the number of apprenticeships that the training institution has is more than or equal to the annual average number of apprentices taken on during the past three years.

Conditions for receiving bonus

Training institutions would be eligible for the bonus if:

  • they are entitled to provide training on the date of the application;
  • they can prove the current apprenticeship contract with the apprentice or their legal representative on the date of the application;
  • they can prove the apprentice's valid affiliation with the Joint Social Security Centre;
  • they can prove that the apprentice has completed the trial period; and
  • when resuming an apprenticeship contract that has previously been terminated, the apprentice has not restarted more than twice since 24 June 2020.

Training institutions that are subject to a ruling stipulating a declaration of bankruptcy at the time of the application would not be eligible for the scheme.

Applications for the bonus should be submitted no later than 15 July 2021, together with supporting documents.

The bonus would be awarded and paid within the credit limits stipulated by the annual budget legislation and no later than 15 September 2021.