Facing Layoff, What to Do?

 

 

I've worked for ten years in a company that is now citing technological, structural, and economic reasons to lay off all employees. I'd like to know the legal procedure for this type of layoff and the rights guaranteed by law?

Indeed, the employer has the possibility, in case of serious difficulties, to invoke technological, structural, or economic reasons to lay off personnel.

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 lieu of employee delegates in companies employing more than fifty employees.
• They must simultaneously provide all necessary information, including the reasons for the layoff, the number and categories of employees concerned, and the period in which they intend to undertake this layoff.
• They must also engage in consultations and negotiations to examine measures to prevent the layoff or mitigate its negative effects, including the possibility of reintegration into other positions. The company administration will draw 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 file submitted to the provincial delegate must include: a report outlining the economic reasons necessitating the application of the layoff procedure; the company's economic and financial situation; a report prepared by a certified accountant or an auditor.

The provincial labor delegate must conduct any investigations deemed necessary. They must forward the file, within a maximum of one month from the date of receipt of the request, to the members of a provincial commission chaired by the governor of the prefecture or province, to examine 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 issued by the governor of the prefecture or province, within a maximum of two months from the date of submission of the request by the employer to the provincial labor delegate, is necessary. The authorization request must be accompanied by all necessary supporting documents and the minutes of consultations and negotiations with employee representatives. As for the indemnities you are entitled to, they are provided for in articles 51 and 52 of the labor code; these are the notice indemnity and the legal layoff indemnities.

Damages and interests are only awarded as part of a court decision.

Mohamed Jamal Maatouk.

Posted online August 23, 2011.

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