In French companies, certain procedures must be followed when planning redundancies on economic grounds. If more than one employee is to be made redundant over a 30-day period, those redundancies are deemed to be “collective”.
The company’s Comité Social et Économique (CSE) must be consulted on the reasons and conditions for collective redundancies before they can take place. How and when the CSE is consulted depends on the number of employees facing redundancy, as this article explains.
Important note: the CSE is a legal requirement in French companies with 11 or more employees. Eligible companies without one will therefore need to hold CSE elections and establish the committee before planning redundancies.
What requirements must be met when proposing collective redundancies?
As well as consulting with the CSE, companies must inform the Directions Régionales de l’Économie, de l’Emploi, du Travail et des Solidarités (DREETS) of the proposed redundancies and their outcome. DREETS are regional directorates that implement and co-ordinate government policies relating to employment, labour, and the economy.
Regardless of the number of redundancies planned, the employer must prepare a document that describes their economic rationale in depth, in order to demonstrate that the conditions for redundancy are met. For example, the company may need to restructure in order to safeguard its competitive position in the market.
It should be noted that the information provided in this document must be both precise and thorough, as it will be referenced by employees looking to challenge the redundancies. As such, the process of preparing the document may be especially time-consuming. The company should also be prepared to present its audited accounts to ensure accurate figures.
Should companies consult the CSE before a single redundancy?
CSE consultation is compulsory for a single redundancy only when it is due to a company re-organisation, or if an employee representative is affected.
What redundancy information must be presented to the CSE?
For fewer than 10 proposed redundancies, the employer must present and explain the following information to the CSE for consultation:
- A detailed economic rationale
- The number of proposed redundancies
- The professional categories affected
- A list of determining criteria for redundancy
- A provisional redundancy timetable
- Details of any potential measures that will:
- limit the number of redundancies, and/or
- redeploy the affected employees.
The consultation meeting must also be used to answer questions posed by staff representatives and/or CSE members. The CSE will then present their views of the proposed redundancy plan within one month. Note that in companies with more than 50 employees, the CSE may be assisted by a technical expert at the company’s expense.
In cases where there are 10 or more proposed redundancies, the employer must hold two meetings with the CSE. The second meeting must be held within 14 days of the first.
When must the company notify the DREETS of their collective redundancy plan?
Notification of the proposed redundancies must be sent to the DREETS by registered letter, on the day following the first CSE meeting at the earliest. Note that for larger companies with 50 or more employees, an employment saving plan (plan de sauvegarde de l’emploi) must also be submitted to the DREETS and agreed in advance of redundancies taking place.
For more information about planning collective redundancies in France, including full details of company obligations, please contact our specialist team.