Unemployment benefits can now be suspended if fraud is suspected

Preservation of unemployment benefits

Law on combating social and tax fraud introduces the possibility for the operator France Travail to suspend the payment of unemployment benefits as a precautionary measure (provisional decision). This measure will apply in the event of « serious indications of fraudulent maneuvers, deliberate failure [of the jobseeker] to fulfill his obligations or commission of offenses by the beneficiary ».

The suspension may be of a maximum duration of 3 months from the date of its notification. The recipient will have the opportunity to present elements allowing to restore his allocation "during a adversarial debate held at his request’; debate to be requested within 2 weeks of notification of suspension.

The law specifies that France Travail may suspend all payments « if this suspension does not deprive the beneficiary of the resources necessary for the current expenditure of his household ».

A decree in the Council of State must determine the modalities of application of these various provisions.

Bank account direct debit verification

Residence in France is already compulsory in order to receive unemployment benefits. Anti-fraud law now imposes on job seekers to have a bank account domiciled in France (or in the SEPA area, the EU's single euro payment area) for the payment of their unemployment benefits.

France Travail may check with the tax authorities that the bank details provided correspond to those of an account opened in the name of the beneficiary of the allowances or aid (Article 2 of the law).

New prerogatives are conferred on sworn agents of the operator France Travail to check the residency requirement in France. The verification may be done in particular via certain login data of the recipients or via access to the register of French people established outside France.

These regulations must comply with the General Data Protection Regulation (GDPR) and the French data protection agency's opinion (Cnil).

Easier recovery of unemployment benefits

The law prohibits the accumulation of income from illicit activities and unemployment benefits. The amount of the allowances may be reduced by the amount of the illegal income received and France Travail will have to recover the part of the allowances unduly received. The implementing rules are determined by the social partners (Article 65 of the Law).

France Travail may also, through administrative seizures to third-party holders (SATD), recover unemployment benefits paid incorrectly (overpayments resulting from deliberate breaches or fraudulent maneuvers, article 110 of the law).