Collective Agreement Redundancy

Collective Agreement Redundancy

In February 1975 concerning the approximation of the laws of the Member States relating to collective redundancies, the National Labour Council concluded Collective Agreements Nos 24 and 24a. “Collective redundancies” are defined as any dismissal of one or more workers for reasons other than those not related to each worker concerned (economic or technical reasons in the broad sense), the number of workers made redundant over a period of 60 days being as follows: the remedy in case of non-compliance with the collective rules of consultation is a “safeguard bonus” of up to 90 days` salary for each worker Concerned, It is an effective and punishable remedy against the employer. The application must be claimed by the recognised trade union or workers` representatives if they exist, failing which the claim may be invoked by each worker concerned. Any employer who intends to carry out collective redundancies is obliged to inform the workers` representatives and to interrupt any consultation on this subject. Such consultations should cover possible ways of avoiding or numbering collective redundancies and mitigating their consequences. To this end, the employer must provide the workers` representatives with all the specific information and, in any event, inform them in writing of the reasons for the dismissals, the number of workers to be dismissed, the number of workers normally employed and the period during which the redundancies are to take place, so that the representatives can make observations and proposals. The employer should also consult with the persons who can be selected for dismissal. In France, there are three different possibilities to challenge collective redundancies, which present three different risks: (i) non-compliance with legal procedure (e.g. B non-compliance with the competition), (ii) lack of valid economic reasons or (iii) insufficient measures of the social plan to limit the impact of redundancies. A collective redundancy is the situation in which 20 or more employees of the same company must be dismissed within 90 days.

Collective redundancies usually occur when a company needs to be restructured to reduce losses. As the scale of the dismissal is significant, special rules apply. . . .