As an entrepreneur, considering terminating a permanent employment contract after a trial period is a significant step. Especially in the context of an individual dismissal for economic reasons, you cannot go about it any way you want. Many rules must be respected before you can actually do this, because beyond the numbers, there are careers at stake.
Namely: The legacy of a changing context
The possibility of dismissals for economic reasons has been strongly restricted by recent crises, notably the COVID-19 pandemic. To avoid massive layoffs, numerous support measures, such as the facilitation of partial activity, the generalization of teleworking or even state-guaranteed loans (PGE), have been introduced by the government to support the entrepreneurial fabric according to health and economic developments.
Who to inform? (DDETS evolution)
The employer must inform the administration of the redundancy within 8 days of sending the letter to the employee.
Important note: The “DIRECCTE” is now called the DDETS (Departmental Directorate of Employment, Labor and Solidarity). Its decision may be appealed to the administrative court within 2 months of its notification.
The different procedures related to the workforce
The procedure depends on the number of employees affected by the dismissal:
- Companies with at least 11 employees: You must consult the Social and Economic Committee (CSE).
- Layoff of 2 to 9 employees over 30 days: The procedure is broken down into several phases: consultation of the CSE (if present), invitation to a preliminary interview, sending of the dismissal letter and notification to the administration.
- Dismissal of at least 10 employees over 30 days: The rules vary depending on the company’s total workforce.
Don’t forget: if the dismissal affects a protected employee (elected CSE, union delegate, etc.), you must obtain prior authorization from the labor inspector.
Respect for reclassification: An obligation of means
Redundancy can only take place if you have made all the necessary efforts to train and adapt your employee to new tasks. Therefore, reclassification offers must be written and precise :
- In a job in the same category or equivalent with identical pay.
- Failing this, in a lower category job, but with the express agreement of the employee.
The preliminary interview: A strict framework
You cannot dismiss your employee without first inviting them to an interview by registered letter (or hand delivery).
- The deadline: The interview cannot take place less than 5 working days after receiving the letter.
- Legal notices: The subject (dismissal), date, time, place and the possibility for the employee to be assisted by a member of staff or an external advisor.
- Risk : Failure to provide this support could cost you up to a month’s salary.
During the interview, you will need to tell the employee the reasons for their dismissal. Secondly, we will collect his explanations to inform him of the reclassification arrangements as well as the Professional Security Contract (CSP).
Notification of dismissal
Only after a minimum period of reflection can you send the letter (in LRAR):
- 7 working days for a non-executive.
- 15 working days for a frame.
The letter must mention the precise economic reason, the priority for re-employment, the benefit of reclassification leave and their rights to the CPF (the Personal Training Account has replaced the old DIF).
Information from the administrative authority
Once the notification is sent to the employee, you inform the DDETS (ex-DIRECCTE) within 8 days, specifying the identity of the employee, their job, their qualification and the date of notification.
Notice and its terms
The notice period begins on the day the letter is received. Its minimum duration is:
- 1 month for seniority between 6 months and 2 years.
- 2 months for seniority equal to or greater than 2 years.
The employer may exempt the employee from notice in writing, in exchange for compensation equivalent to the salary he would have received.
Redundancy is one of the challenges of life as an entrepreneur. Even if the situation is difficult for you and the formality upsets you, never forget that the ordeal is even more significant for those who lose their job. It is in these moments that your corporate culture is revealed. She must know how to remain human, even in the face of rupture. Acting with administrative rigor and human empathy remains the best way to protect your business.
