The stages of an economic dismissal procedure: detailed guide

Economic dismissal is a complex procedure that requires special attention. As a specialist in labor law, I would like to guide you through the different stages of this process. My experience taught me that understanding each phase is crucial, both for employers and for employees. Let us dive together in the meanders of this procedure, taking care to respect the rights of each.

The steps prior to economic dismissal

Before starting the economic dismissal procedurethe employer must cross several crucial stages. I have often found that the negligence of these preliminary phases can weaken the entire approach.

Consultation of staff representatives

The first step is to consult the Social and Economic Committee (CSE) or staff representatives. This consultation is compulsory and makes it possible to inform and collect the opinion of representatives on the dismissal project. I happened to see procedures canceled for lack of respected this essential step.

The search for alternative solutions

The employer must demonstrate that he has sought all possible solutions to avoid layoffs. This implies:

• The implementation of training and adaptation efforts
• The attempt to reclassify employees on jobs available in the company or group
• The definition of criteria of the dismissal order (age, seniority, family charges, etc.)

Justification of economic reasons

It is imperative that the employer can justify the economic reasons invoked. Valid reasons may include:

• Economic difficulties (drop in turnover, operating losses)
• Technological changes
• A reorganization necessary to safeguard competitiveness
• A total and final cessation of activity

The progress of the dismissal procedure

Once the preliminary steps have been completed, the economic dismissal procedure properly said can start. I will detail the key phases of this process, based on my experience to enlighten you on the points of vigilance.

The summons to the prior interview

The employer must convene each employee concerned to a prior interview. This summons must be made by registered letter with acknowledgment of receipt or hand -handed against discharge. It must be sent at least 5 working days before the date of the interview and mention:

• The object of the interview
• The date, time and place
• The possibility for the employee to be assisted

Prior interview and its issues

During the interview, the employer presents the reasons for the dismissal and the employee has the opportunity to express himself. It’s a crucial moment when I saw many misunderstandings dissipate. For employees with at least one year of seniority, the employer must offer a professional security contract (CSP).

The notification of the dismissal

After the interview, if the employer maintains his decision, he must notify the dismissal by registered letter with acknowledgment of receipt. The deadlines to be observed are:

The letter must mention the economic reasons, the impossibility of reclassification and the priority of rehiring. I always insist on the importance of writing this letter, because it will serve as a basis in the event of subsequent dispute.

Post-licning obligations

The process does not stop at the notification of the dismissal. There are still several important steps to be crossed to close the economic dismissal procedure in the rules of the art.

Administration information

The employer must inform the Regional Directorate of the Economy, Employment, Labor and Solidarity (DREETS) within 8 days of sending the letter of dismissal. This step, although often neglected, is crucial for the validity of the procedure.

Notice and allowances

The notice of dismissal varies according to the seniority of the employee:

• 1 month for seniority between 6 months and 2 years
• 2 months for seniority greater than 2 years

The employer must pay several compensation:

• The dismissal allowance (for employees with at least 8 months of seniority)
• The compensatory notice allowance (if the employee is provided)
• Compensatory compensation for paid leave

I have often found that the calculation of these allowances can be a source of disputes. It is therefore essential to pay particular attention to it.

Support measures

The implementation of planned reclassification and support measures is a final but no less important step. It testifies to the good faith of the employer and can facilitate the professional transition of the dismissed employee.

Particularities according to the magnitude of the dismissal

The economic dismissal procedure varies according to the number of employees concerned. My experience showed me that this distinction is often poorly understood, causing procedural errors.

The “small” economic dismissal

When the dismissal concerns 2 to 9 employees over a 30 -day period, we speak of “small economic dismissal”. The procedure is that which I described previously, with some minor adaptations.

The “big” economic dismissal

For a dismissal of at least 10 employees over 30 days, the procedure becomes more complex. It involves in particular:

• A more in -depth consultation of the CSE
• The development of a job safeguard plan (PSE) for companies with 50 or more employees
• A reinforced control of the administration

I have witnessed situations where employers underestimated the complexity of this procedure, exposing to significant legal risks.

Finally, the economic dismissal procedure is a path strewn with pitfalls which requires great rigor. Each step is important and must be carried out with caution. As a professional passionate about labor law, I can only recommend that you be accompanied by an expert to sail in these sometimes troubled waters. Remember that behind each folder, there are lives that turn. Our role is to ensure that this delicate passage takes place in compliance with the law and the dignity of each.