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Plan for safeguarding employment (PSE) - Economic redundancy

Verified 20 April 2021 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Labor

In the case of dismissal on economic grounds, the employer must implement an employment protection plan (ESP). The plan aims to avoid or limit the number of redundancies. It is based on the number of employees whose dismissal is envisaged. It shall be subject to validation or approval of its content by the Dreets: titleContent.

The job protection plan (PSE) is a system of measures designed to prevent or reduce redundancies on economic grounds in the company.

The PES is mandatory in the companies of Minimum 50 employees, where the proposed dismissal concerns Minimum 10 employees over a period of 30 consecutive days.

Mandatory measures

The PES incorporates a redeployment plan to facilitate the redeployment of employees whose dismissal is inevitable.

The procedure for monitoring the implementation of the reclassification plan is specified in the PES.

The PES provides for the following:

  • Measures for the internal reclassification in France of employees, in jobs falling within the same category of jobs or equivalent to those which they occupy (or, subject to the express agreement of the employees concerned, in jobs of a lower category)
  • Actions promoting the resumption of all or part of the activities with a view to preventing the closure of one or more establishments
  • Creation of new activities by the company
  • Measures to promote reclassification from outside the company (in particular by supporting the reactivation of the labor pool)
  • Actions to support the creation of new activities or the take-over of existing activities by employees
  • Training, validation of experience acquired (VAE) or retraining measures to facilitate the internal or external reclassification of employees to equivalent posts
  • Measures to reduce or adjust working time and measures to reduce the volume of overtime worked on a regular basis
  • Conditions for implementing the reclassification leave or the professional security contract (CSP)
  • Reclassification plan aimed in particular at older employees or employees with social characteristics or qualifications which make their reintegration into the labor market particularly difficult

FYI  

the employer of a company with at least 1 000 employees who is considering closing an establishment is subject to the obligation to search for a potential buyer.

Optional measures

The PES may also provide for other, optional measures, such as:

A majority company agreement must specify the measures provided for in the PSE.

In the absence of an agreement, the employer shall draw up a document setting out the measures of the PSE.

Agreement

A majority collective agreement in the company may determine the measures provided for in the PSE.

The procedure for monitoring the implementation of the reclassification plan is specified in the PES.

The Social and Economic Committee (ESC) is consulted.

The agreement shall be subject to the Dreets: titleContent.

Who shall I contact

The measures provided for in the agreement enter into force after validation by Dreets.

The employee must be informed of the validation decision:

  • Either by display at the workplace
  • Or by any other means which makes it possible to determine the date on which he was informed
No agreement

In the absence of an agreement, the measures of the PSE are specified in a document prepared by the employer.

The Social and Economic Committee (ESC) is consulted.

The document shall be submitted to the Dreets: titleContent.

Who shall I contact

The measures provided for in this document enter into force after approval by Dreets.

The employee shall be informed of the approval decision:

  • Either by display at the workplace
  • Or by any other means which makes it possible to determine the date on which he was informed

Please note

some of the PES measures can be agreed and the other set by the employer's document.

Except in the case of recovery or judicial liquidation, the dismissal of the employee shall be canceled in any of the following cases:

  • No decision to validate an agreement or to approve the document by the Dreets: titleContent
  • Refusal of the Dreets to validate the agreement or to approve the document
  • Cancelation by Dreets of the validation or approval decision due to the absence or insufficiency of the PSE
  • Absence of consultation of the EESC

The judge may order the continuation of the employment contract or declare the dismissal void.

The employee requests his reinstatement in the company

The judge may order the employee's reinstatement in the company, if the employee so requests.

The employee is reinstated in the company (if the employee and employer agree), with his acquired benefits maintained.

The employee does not ask for his reinstatement in the company

If the employee does not apply for reinstatement in the company or if it has become impossible (in particular because of the closure of the establishment or site or the absence of available work), the employer must pay him compensation for the dismissal without pay.

This allowance shall be at least equal to the wages of the last six months.

Please note

a period of 12 months from the date of notification of the termination of the contract of employment shall apply to challenge dismissal on economic grounds.

FAQ