The company has a special reference in social law. It is the framework within which the employment relationship operates. The activities of the staff, management and capital components constitute business. The purpose of this article is to study the effect of the changes of these components on the rights of the employees.
Restructuring signifies change may take two forms. The first is the adoption of internal reorganization measures. These are management actions that are decided by the leaders and are likely to jeopardize the rights of employees. There may also be changes in the direction of the company. Most often they are necessary and keep in mind the interests of the employees. Employees have the right to intervene to safeguard their interests. This gives rise to trade unions that must be consulted and kept informed of decisions that are likely to affect the employees before making a decision.
[...] When is a redundancy of more than 11 employees in a firm it must first meet and consult the Trade union representatives. The procedure of major layoffs is also applicable to a succession of small layoffs. A major lay off can be made, if 10 employees were laid off over the previous three months. If 10 people were laid off during the previous year under the procedure of small layoffs, any subsequent layoffs will have to be treated as major layoffs. [...]
[...] In such a situation, there is no requirement of prior consultation on the part of the company launching the takeover bid. The meeting with the workers can take place after the publication of the offer The Company which is the subject of the take over, should immediately notify the workers about the bidder. Under the takeover regulations (Article L621-8 IX of the Monetary and Financial Code) the bidder will then be required to submit an information note. The workers council is required to meet within 15 days of receiving the note to review it, and where appropriate to proceed with the hearing of the bidder. [...]
[...] Out of contract in case of corporate reorganization Restructuring and a concept of redundancy Article 1233-3 of the Labor Code gives defines redundancy as. dismissal by an employer for one or more reasons not related to the individual workers, resulting from downsizing change of the terms of employment or due to a component of an amendment of contract, including subsequent economic difficulties or technological changes being rejected by the employee.” The problem is not economic restructuring. A reorganization of the company that is not directly linked to economic difficulties or technological change may justify a redundancy. [...]
[...] The decision of the Social Chamber of 12/04/2005 marks an extension of the rights of employees who have been dismissed because the Court can now pursue the assignor, to request the assignee to take over the contract of employment. If the redundancy had occurred before the transfer of the economic entity, the transfer would be deemed ineffective. Therefore, the assignee will be required to resume employment contract but he had earlier refused to do so. Through their joint action, the assignor and the assignee are responsible for the injury suffered by the employee and will be sentenced jointly and severally to pay damages. [...]
[...] The case law strongly supports the implementation Article L1224-1 but the practical consequences can be disastrous for the employee as illustrated by the case of Guermonprez in the Social Division of the Court of Cassation, 20/01/1998, where all the employees of a company offered for takeover with temporary maintenance activity had been dismissed by the liquidator before an assignment of goodwill. The Court considers that the dismissals prior to the sale of the business are ineffective when there was a transfer of an autonomous economic entity whose activity has been sued by the buyer. [...]
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