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By Julien Haure and Marine Hamon
May 26, 2022
Julian Haure is a partner in Mayer Brown’s Employment & Benefits practice group of the Paris office.
Marine Hamon is an associate in Mayer Brown’s Employment & Benefits practice group of the Paris office.
Published in Today's General Counsel, June 2022
Notwithstanding the extensive financial support of the government, the pandemic has put a great strain on many companies in France, leaving them no choice but to restructure and downsize their workforce. In companies required to implement a social plan (i.e., companies with 50 employees or more planning to terminate the employment of at least 10 employees over a 30-day period), the project — whether collectively agreed-upon with unions or unilaterally set by the employer — must be signed off by the labor authorities. Without this validation, any subsequent dismissal could be held null and void and entitle employees wrongly terminated to reinstatement or payment of damages.
Traditionally, international corporations had a tendency to focus solely on the financial measures and redeployment opportunities they could provide in the plan. These were the main conditions to ensure a positive decision from the labor authorities.
While this remains mostly true, the focus has recently shifted a little with increasing attention given by labor inspectors to the protection of health and safety when considering the validity of the social plan. This is not surprising. All employers are subject to a legal and strong duty to protect the health and safety of their workforce, and it has been highlighted because of the pandemic.
A restructuring can be stressful in France for all stakeholders. From the announcement of the project to the notification of redundancies, everyone is under pressure: employees who do not know if or when they will lose their job; human Resources, which must handle, inter alia, discussions and negotiations with employees’ representatives and are pushed by the company to bring the process to an end; and the employees’ representatives, the Social and Economic Committee (CSE), which has replaced the works council, and unions.
Neglecting the protection of health and safety can not only lead to delay in completion due to the refusal of the labor authorities but it can also aggravate the psycho-sociological risks inherent to this type of project among employees who would have to handle the consequences of their dismissal on their family, career and so forth.
To deal with these frequent pitfalls, the following checklist should guide employers in preparing the health and safety component of their restructuring project:
Before the announcement:
When announcing the project:
During the information/consultation process with the CSE and the negotiation phase with unions:
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