Facing Layoff, What to Do?
8 June 2011
Read by 4244 persons

Indeed, in serious difficulties, the employer can invoke technological, structural, or economic reasons to lay off employees.
However, for this decision to be legal, the employer must follow a specific procedure as stipulated in articles 66 and following of the labor code.
Thus, for companies usually employing ten or more employees, the employer must respect the following steps and conditions:
- Must inform employee delegates and, if applicable, union representatives in the company at least one month before proceeding with the layoff. The works council acts in place of employee delegates in companies with more than fifty employees.
- Must simultaneously provide all necessary information, including reasons for the layoff, the number and categories of employees concerned, and the period in which the layoff is intended to take place.
- Must also engage in consultations and negotiations to explore measures to prevent the layoff or mitigate its negative effects, including the possibility of reintegration into other positions. The company administration draws up minutes recording the results of the aforementioned consultations and negotiations, signed by both parties, with a copy sent to the employee delegates and another to the provincial labor delegate.
The provincial labor delegate must conduct any investigations deemed necessary. Within one month of receiving the request, they must forward the file to the members of a provincial commission chaired by the governor of the prefecture or province to review and rule on the file within the aforementioned timeframe.
The decision of the governor of the prefecture or province must be reasoned and based on the conclusions and proposals of the said commission. Finally, authorization from the governor of the prefecture or province is required, within a maximum of two months from the date the employer submits the request to the provincial labor delegate. The authorization request must be accompanied by all necessary supporting documents and the minutes of consultations and negotiations with employee representatives. Regarding compensation, articles 51 and 52 of the labor code provide for notice pay and legal severance pay.
Damages are only awarded through a court decision.
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