Questions for Mr. Stéphane Valeri Government Counsellor - Minister of Social Affairs and Health : “Teleworking, an opportunity for Monaco”.
1) What issues were at the origin of the new legislation on teleworking in Monaco? Can the impact on pensions be high?
The development of teleworking is one of the major factors enabling Monaco to establish its role as an economic development hub, which will also greatly benefit the surrounding and neighbouring areas in France.
It is an appropriate response to the smallness of our territory and the cost of property, which can hinder economic development: all of which are elements which lead me to say that teleworking really is essential for Monaco’s future.
But for it, prior negotiations with France - begun in 2010 - were required, to allow changes in the treaty rules on the future teleworkers’ affiliation to a social security scheme.
The interest of developing teleworking for Monaco’s businesses and employees was in fact subject to the French authorities’ agreement in order that future teleworkers will be affiliated to the Monegasque social systems, instead of those of their State of residence, France in this case.
Thus the impact will be very positive for Monaco.
Employers will be able to increase their sales turnover and profit. The State will benefit from new revenue from VAT and corporate income tax.
In addition, thanks to the jobs created in this way, the Social Services Compensation Fund and the Pension Fund will benefit from new contributions for the entire working life of teleworkers, who will contribute to the scheme’s funding and stability.
And we are aware that this is particularly necessary for the stability of the employee pension scheme.
Teleworking is a great step forward, which puts Monaco and its economy on the road to modernity, employment growth and an increase in hours worked.
Teleworking is the future and we needed to be there. We are there now, and I put my trust in employees and employers to understand that. Now it is up to them to use it.
2) How were the number of jobs which teleworking will potentially generate estimated, and over how many years? (Was there talk of 8,000 new jobs? Are the encompassed sectors of activity known? Is the basis the average European figure for teleworking of 15% to 20% ?)
In Europe, the average figure for teleworking employees varies between 15% and 20%. Applying those figures to the Principality of Monaco, that would equate to approximately 7,000 to 10,000 jobs in the medium term, as it will, of course, take several years for this new form of work to gain strength.
It is not only a question of job creation, however: today’s employees will be able to choose this new method of organization, in agreement with their employers, which will mean the transformation of jobs.
All sectors of activity could be encompassed: even the hotel industry and businesses in the industrial sector, for example, could resort to teleworking for secretarial or some administrative tasks. But the most encompassed areas are, of course, new technologies, IT, communication, the banking sector and more broadly services companies.
3) In practical terms, how will companies go about it?
We are aiming for simplicity and effectiveness.
As a consequence, tangible and practical resources are available to employers at the Department of Employment to facilitate the introduction of this new form of work:
- employment contract templates or employment contract amendment templates can be given in person to interested parties,
- as well as a form which will support employers in preparing the "Framework Scheme" which presents the general methods of implementing work as telework.
Finally, a brochure for both employees and employers has been finalised. It will be addressed personally to all company leaders by post in the next few days.
The Department of Employment is also willing to receive any employer who requests a meeting, here also with the goal of facilitating the practical implementation of teleworking.
4) Would you like to mention the case of Caisse d'Epargne CAZ?
The Caisse d’Epargne indeed has solid experience in teleworking, acquired over more than one year, in France.
Mr. Moreau, a member of the Caisse d’Epargne Côte d’Azur management board who heads the Resources division, stated at a Monaco Economic Board breakfast meeting on 5 July that this test proved particularly positive and should be replicated and extended to Monaco.
More broadly, recent studies show that in France, more and more banks (recently, Natixis, Crédit Agricole and Société Générale) are changing their management by progressively introducing teleworking successfully, particularly for back-office, IT and even human resources sections.
In Monaco, Monaco Telecom has paved the way, with 43 teleworkers as of 1 September, and the company expects to have 80 teleworking employees by the end of the year.
In France, in companies which have implemented teleworking, there is an estimated 96% satisfaction with teleworking among all parties involved (teleworkers, managers and employers), given the average productivity increases (+22%), time saved per teleworking day which benefits family life (37 minutes) and additional sleeping time per teleworking day (45 minutes).
These figures suggest that many Monegasque companies will want to try out the experience.
