Outplacement abroad
A firm which had establishments abroad or that was detained by a multinational group, when planning a collective economic lay-off, had to search for outplacements in every country it had entities in. Until recently, the employer had to offer as outplacement to the dismissed employees absolutely every vacant positions in the world.
Pursuant to the 18th May 2010 Law, the employer had to question his employees threatened with the economic lay-off over their wish to be offered or not outplacement abroad and to invite them to specify their limitations for the geographic mobility and wage in an outplacement questionnaire.
Since Macron Laws, the outplacement obligation of the employer is strictly limited to France.
The financial difficulties of the employer are considered at the level of the French entity
Before this modification, the Supreme Court (Cour de Cassation) examined the financial difficulties of the entire group of companies so if the French company of the Group had a loss or financial difficulties but the results of the Group were positive financially, the economic lay-off could have been considered as invalid. Since the new law of September 2017 only the results of the French entity are taken into consideration.
The financial capacities will now be taken into account at the firm’s level to elaborate the collective lay-off plan in case of bankruptcy
A firm planning collective economic lay-off which belongs to a group had to elaborate the collective lay-off plan in accordance with the group’s financial capacities. Macron Law now provides that the DIRECCTE (French administrative authority concerning labor laws) will examine the collective lay-off plan made by firms in bankruptcy in light of the firm’s financial capacities instead of the group’s. The employer, administrator or liquidator will have the option to request the group’s assistance, and in particular financial support drawing up the PSE.
The idea is that lay-off plans are now proportionate
This provision made trade unions very unhappy but delighted French employers. Article 101 of the Macron Law specifies “concerning firms in bankruptcy, the lay-off plan will be proportionate regarding financial capacities of the firm” not the group which it depends. In other words, employees will no longer be able to invoke profits from parent company to request for a cancellation of the lay-off plan. It will now be limited to the firm’s financial capacities, what promises to reduce the amount of compensations. “PSE” will be substantially less “generous”. Above all, this provision has an important induced effect: it will lead to ratify easily lay-off plans since it is according to those new criteria that administration will pronounce the validity of the PSE.
Liliane-Leila SABER
Avocat à la Cour