Dismissal after therapeutic part-time work: how is redundancy pay calculated?

Responsable RH consultant un dossier de licenciement en arrêt maladie

When an employee is dismissed while on sick leave following a period of therapeutic part-time work, the employer must pay particular attention to the method used to calculate the severance pay. An error in the basis of calculation can easily lead to litigation.

In a ruling dated March 5, 2025 (Cass. soc., no. 23-20.172), the French Supreme Court clarifies the applicable terms and conditions. This decision is in line with established case law aimed at neutralizing the effects of health conditions on reference pay.

Neutralization of part-time work and sick leave

Article L. 1132-1 of the French Labor Code prohibits discrimination on the grounds of health. In the case of therapeutic part-time work, remuneration is by definition reduced. The Court ruled that this reduced remuneration could not be used to calculate severance pay.

➡ This principle also applies to the following sick leave: absence from work cannot justify a reduction in compensation.

🔎 To put it plainly: compensation must be calculated on the basis of the full-time salary received prior to the period of part-time work and sick leave.

What the Court said in the March 5, 2025 case

In this case, an employee dismissed for unfitness sought additional compensation, arguing that the calculation used was based on a salary reduced by the fact that she was working part-time.

The Court of Cassation agreed:

The reference salary must be determined in accordance with articles L. 1234-9 and R. 1234-4 of the French Labor Code,
The calculation must be based on remuneration for the 12 or 3 months preceding the therapeutic adjustment,
Part-time work and sick leave must be excluded from the calculation.

Points to watch for employers

Always identify whether therapeutic part-time work has been set up prior to dismissal.
Never use reduced remuneration as a basis for calculation, even if it covers the last 12 or 3 months.
Secure your internal practices (bulletins, endorsements, HR history) to avoid any post-termination disputes.

Our advice

If there is any doubt about the applicable calculation basis, particularly in the case of workstation adjustments or sick leave, it is advisable to carry out an audit of the file before notifying the dismissal.

A discussion with your legal advisor will enable you to adjust the calculation basis and avoid any dispute over the amount paid to the employee.

Reference: Cass. soc., March 5, 2025, no. 23-20.172
Articles: L. 1132-1, L. 1234-9, R. 1234-4 of the Labor Code

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Do you need support to secure your dismissal procedures?
Desrumaux Avocats assists companies in calculating compensation and managing high-stakes terminations.

2 April 202517 April 2025

An employee keeps his phone line after he leaves: what can the employer do?

When an employee leaves the company, the return of the equipment provided is not usually a problem. However, there is a real legal risk when an employee keeps the business telephone line, sometimes without the employer’s knowledge.

The French Supreme Court recently issued a useful clarification on this point in a ruling dated February 5, 2025 (no. 22-23.730 F-D).

The case in point: a personally transferred line

A dismissed sales manager returns his work phone… but has the line transferred to his personal name, without authorization. The company, anxious to regain control of this customer communication channel, brought the matter before the summary proceedings judge.

The Court of Appeal, then the Court of Cassation, ruled in favor of the employer:

the employee did not provide proof of authorized personal use,
the line was underwritten and financed by the company,
no benefit in kind or tolerance of private use was established.

The unilateral transfer of the line was considered a fraud on the company’s rights.

A quick recourse: summary proceedings at industrial tribunal level

The Court points out that under article R. 1455-7 of the French Labor Code, a summary proceedings panel may order the performance of an obligation to make restitution, provided that the existence of this obligation is not seriously disputable.

This allows the employer to act without waiting for a judgment on the merits, to protect its commercial interests and limit the risk of misappropriation of customers.

Employers’ key points

Anticipate the return of all work tools when an employee leaves, including intangible assets such as a telephone line.
Check that the line is strictly professional: subscriptions, usage, billing, documentation… everything must show that it belongs to the company.
In case of doubt or unjustified withholding, take your case to the interim relief judge to prevent the former employee from continuing to use the company’s contact facilities on his own account.

Need to secure your return procedures at the end of a contract?
We support companies in drafting contractual clauses, HR audits and strategic labor litigation.

4 February 202517 April 2025

How can I avoid having my redundancy dismissed as unfair dismissal?

Redundancy is a delicate procedure that can quickly lead to disputes if not handled properly. There is a risk that this type of dismissal will be requalified as unfair dismissal, which can be costly for the company. This article will guide you through the best practices to adopt to minimize this risk.

Understanding the economic reasons for dismissal

Redundancies must be based on real and serious economic reasons. It is important to understand what exactly is meant by the term “economic reason”. In general, it refers to economic difficulties, technological change, safeguarding competitiveness or cessation of activity.

To justify a sound economic dismissal, it is essential to document the reasons precisely. Indeed, without a concrete basis, the dismissal could easily be contested and potentially requalified as unfair dismissal following a decision by the industrial tribunal.

Economic difficulties

Economic difficulties can take many forms: a significant drop in sales, substantial financial losses, a reduction in orders, and so on. Make sure you have tangible, verifiable evidence to back up these claims.

Technological change

Technological advances can sometimes render certain skills obsolete. However, the company must demonstrate why these technological developments have a direct impact on certain positions, justifying the need for redundancy.

Strict adherence to the dismissal procedure

The redundancy procedure is highly regulated by employment law. A fault in this procedure can immediately turn your economic dismissal into an unfair dismissal. Here are a few crucial steps to follow:

Informing employee representatives
Calling the employee to a preliminary interview
Notify the dismissal within the legal deadlines
Propose a job protection plan if necessary

Prior interview

Thepreliminary interview is an essential stage at which the employer must explain to the employee the reasons envisaged for his dismissal. The employee also has the opportunity to present his or her observations. Be sure to document this meeting thoroughly, to avoid any ambiguity in the event of a subsequent dispute.

Notification of dismissal

Notice of dismissal must be given by registered letter with acknowledgement of receipt. This letter must clearly state the economic reasons justifying the termination of the employment contract. Failure to do so may result in the dismissal being deemed to be without real or serious cause.

Setting up a job protection plan

In companies with more than fifty employees, when at least ten redundancies are envisaged over a thirty-day period, it is compulsory to draw up a job protection plan (PSE). The aim of this plan is to limit the number of redundancies and promote the redeployment of the employees concerned.

An effective PES often includes measures such as training, assistance with internal or external mobility, and sometimes even financial aid. Transparency and rigor in the preparation and implementation of this plan are essential to avoid any risk of requalification.

Reclassification measures

Before laying off an employee for economic reasons, the employer must actively seek out outplacement solutions for the employee, both within the company and, where applicable, with other companies in the group. Every attempt to find another position for the employee must be thoroughly documented.

Training and support

Offer the employees concerned appropriate training to help them find a new job more easily. A good training and support plan considerably reduces the risk of the dismissal being contested.

Dealing with contested dismissals

Despite all the precautions taken, an employee can still contest a dismissal for economic reasons. In the event of a dispute, the employee can take the matter to the industrial tribunal (Conseil des prud’hommes), requesting that the dismissal be reclassified as unfair dismissal. If the industrial tribunal overturns your decision, this may result in the employee’s reinstatement or the payment of significant damages.

That’s why it’s crucial to be prepared, and to have all the documents you need to prove that the economic reason is real and serious, and that the redundancy procedure has been followed in full.

Table summarizing the key stages in a redundancy procedure
Stage	Description
Economic reasons	Document economic difficulties, technological change, etc.
Informing employee representatives	Communicate with employee representatives from the outset.
Pre-interview	Invitation and detailed interview documentation.
Notification	Send a registered letter explaining the reasons for dismissal.
Employment protection plan	Implementation of a PSE including redeployment and training.

Avoiding the reclassification of a redundancy as unfair dismissal requires rigor and attention to detail at every stage of the process. By carefully documenting the economic reasons, strictly following the redundancy procedure, and putting in place an appropriate job protection plan, the risks of a challenge can be greatly reduced.

For the employer, it’s a proactive approach designed not only to protect himself legally, but also to deal humanely with the difficult situations encountered by employees during redundancies.

27 February 202417 April 2025

Profit-sharing agreements under the Syntec agreement

Incentive and profit-sharing schemes apply to companies governed by the Syntec collective bargaining agreement. What do these bonuses correspond to? How can they be paid out?

Incentive and profit-sharing agreements are employee savings schemes designed to define the terms and conditions for redistributing company profits and results. They can thus encourage employee motivation by associating them with the company’s economic performance.

The law of November 29, 2023 introduced a new mandatory experimental value-sharing scheme for small businesses. This means that employee savings schemes can now be applied to an ever-increasing number of companies. We explain the details of this law below.

What is a profit-sharing agreement?

A profit-sharing agreement pays employees a bonus linked to the company’s performance. Setting up such an agreement is optional.

The Syntec Convention therefore makes no specific provision for this agreement.

To be implemented, profit-sharing must be the subject of a collective agreement. This agreement is concluded for a period of 1 to 5 years and provides for :

Reasons for introducing profit-sharing ;
Criteria for distributing the total amount of profit-sharing among employees ;
The choice of profit-sharing calculation method ;
Dates and conditions for payment of the profit-sharing bonus ;
Procedures for dealing with profit-sharing disputes.

In companies with fewer than 50 employees, profit-sharing may also be introduced by unilateral decision of the employer. In this case, a “procès-verbal de carence” must be filed, less than 4 years old, proving that no employee representative body has requested the introduction of such a scheme, or establishing the failure of negotiations.

The agreement specifies the profit-sharing calculation formula and the criteria for allocation among employees. The distribution can be :

Uniform, i.e. all employees receive the same amount;
Proportional: the bonus received by employees is proportional to their salary or time spent with the company;
Depending on these two modes, the choice of allocation may combine several of these criteria.

What is a profit-sharing agreement?

Profit-sharing is a mandatory employee savings scheme for companies with more than 50 employees. It enables employees to share in the company’s profits.

It can be set up by means of a company-wide collective agreement. The profit-sharing agreement must contain provisions concerning :

The formula used to calculate the special profit-sharing reserve (RSP),
The period of unavailability of beneficiaries’ rights and cases of early release,
Conditions and deadlines for requesting immediate availability of sums,
Reserve allocation methods and ceilings,
The nature and management of beneficiaries’ rights.

The law provides a formula for calculating the amount of the special profit-sharing reserve, i.e. the share of profits to be distributed among employees: [½(B – 5% C)] x [S/V].

B: net income

C: shareholders’ equity

S: salaries

V: company added value

It is possible to provide for another formula, which must then be just as favorable to employees.

As with the profit-sharing scheme, the distribution among employees is based on selected criteria:

Uniformly across all employees,
Proportionally according to salary or time worked,
Or a combination of the above criteria.

The amount of profit-sharing paid out is, by its very nature, uncertain: it depends on the company’s profits for the previous financial year, which may vary from one year to the next. It cannot therefore be determined in advance.

For employees

Each company is required to provide its employees with an employee savings booklet, setting out the employee savings schemes set up within the company, such as a PEE (company savings plan) or a Perco (collective retirement savings plan).

The employee can then request immediate payment of the profit-sharing bonus within 15 days of being informed of the amount due.

Otherwise, the bonus will be placed in the employee’s company savings plan. It will then be available at the end of the blocking period for the plan concerned (5 years for the PEE, until retirement for the Perco), except in the case of early release applicable to the plan.

Premiums invested in an employee savings account are not subject to income tax.

For the company

Amounts paid out under incentive and profit-sharing schemes are exempt from social security contributions and social security charges when the company is below certain thresholds (fewer than 250 employees for incentive schemes and fewer than 50 employees for profit-sharing schemes).

These sums are also deducted from taxable income.

However, two cumulative limits must be respected in order to benefit from profit-sharing exemptions:

Total profit-sharing bonuses paid to all employee beneficiaries may not exceed 20% of total gross salaries paid,
The total amount of profit-sharing received by an employee per year may not exceed €34,776.

What changes?

Since November 29, 2023, a new mandatory experimental value-sharing scheme has also been in force for small businesses. It will run for 5 years from the law’s promulgation, i.e. from November 29, 2023 to November 2028. It concerns :

Companies with 11 or more employees who are not required to set up a profit-sharing scheme.
Companies that have made a net profit for tax purposes equal to at least 1% of sales for three consecutive years.
Please note: Net profit for tax purposes corresponds to the profit taken into account in the legal formula for calculating the special profit-sharing reserve, set out inArticle L.3324-1, 1° of the French Labor Code.

When these conditions are met, you must implement one of the following three measures:

Set up a profit-sharing agreement;
Set up a profit-sharing scheme;
Contribute to an employee savings plan;
Pay a value-sharing bonus.

Important: If your company already implements one of these three schemes, then you will be exempt from this obligation, which you are already implementing in practice.

This obligation will apply to financial years starting on or after January 1, 2025, and the three previous financial years will therefore be taken into account to determine whether or not you need to implement one of these systems.

Naturally, DESRUMAUX AVOCATS will be happy to provide you with further information on these systems, and to help you set them up.

27 February 202417 April 2025

How do Syntec’s fractional days work?

Employees covered by the Syntec collective bargaining agreement are entitled to paid vacations, which they can earn and take over different periods. The period in which these paid vacations are taken determines their entitlement to additional paid vacations, known as “split days”.

What are fractional days?

Employees with at least one year’s continuous service with the company are entitled to 25 days’ paid leave.

Employees who have not completed one year’s continuous service are entitled to a number of paid vacation days calculated on a pro rata basis, based on 25 working days per year.

The period taken into account to determine the presence of employees in the company and the acquisition of these days is laid down in the Syntec collective bargaining agreement, and runs from June 1 of the previous year to May 31 of the current year.

These paid vacations can be taken over a period starting on May 1 and up to a maximum of 13 months.

Employees are free to take their vacations during this period.

However, in order to encourage employees to take their paid vacations outside the legal period (which runs from May 1 to October 31), the Syntec collective bargaining agreement provides for additional days off for paid vacations taken outside the legal period, known as fractioning days.

What does the Syntec collective bargaining agreement cover?

The Syntec collective bargaining agreement provides for additional days off, known as fractional days, when paid leave has not been taken in the period between May 1 and October 31.

The first 4 weeks of paid vacation, known as “main leave”, can be taken outside this period, giving entitlement to additional leave.

Please note: the 5th week of paid leave taken outside the legal period does not give entitlement to split days.

Split days are therefore granted to employees according to the number of paid vacations taken outside the period from May 1 to October 31, as follows:

when 5 working days of paid vacation have been taken outside this period, 2 additional working days of paid vacation are granted;
when 3 or 4 working days of paid vacation are taken outside this period, 1 additional working day of paid vacation is granted.

How do you set up this system within your company?

The implementation of paid leave splitting must be the subject of a company agreement or an agreement between the employer and the employee concerned.

Caution: according to the French Supreme Court, entitlement to these additional days of leave arises solely from the fact of splitting, whether the employer or the employee has taken the initiative (Cass. soc., Oct. 10, 2018, no. 17-17.890; Cass. soc., Dec. 14, 2022, no. 19-23.843).

One exception:

The employee’s agreement is not required when paid leave is split up due to the company being closed.

Finally, it is still possible to adapt, or even abolish, the right to split leave by company or establishment agreement.

In the absence of a company agreement, the waiver of fractional leave must be the subject of an individual written agreement with the employee.

Naturally, Cabinet DESRUMAUX is available to help you with any questions you may have about your entitlement to paid leave and split days, and their implementation in your company.

8 February 202417 April 2025

Kilometric allowances under the Syntec collective agreement

Transport costs correspond to expenses incurred by the employee for the needs of his professional activity.

Indeed, employees are often required to use their personal vehicles for work purposes, or to use public transport or public bicycle rental services to get to work.

These expenses may be reimbursed by the employer. These expenses are then exempt from social security contributions, within certain limits and subject to certain conditions.

What is the mileage allowance?

When an employee is obliged to use his or her personal vehicle for work-related purposes, the employer may reimburse expenses in the form of a mileage allowance.

For this to happen, the employee must meet a condition relating to constraint. They must not be able to use public transport, either because of the distance from their home or workplace, or because of their working hours.

This mileage allowance is therefore not admissible when the distance from the employee’s home and the use of his personal vehicle are due to personal convenience.

When this condition is met, the employee’s mileage expenses may be reimbursed for the use of his or her vehicle in the course of his or her work. An allowance is then paid to cover the cost of fuel, maintenance, insurance and vehicle depreciation.

☛ Please note: there are a number of different ways of paying for employee transport costs. Only one of these is compulsory: 50% of the cost of public transport season tickets purchased by employees for all journeys between their usual place of residence and their place of work.

The mileage allowance is an optional form of reimbursement, in the same way as the reimbursement of fuel and supply costs for electric, rechargeable hybrid or hydrogen vehicles, the transport bonus, or the sustainable mobility package.

How do I set up a mileage allowance?

The mileage allowance is optional. It can be set up by company agreement, or by individual agreement with the employee, for example in the employment contract.

The Syntec collective bargaining agreement does not contain any specific provisions on this point.

However, the amounts and terms of the allowance are set with reference to the scales established by the tax authorities, in order to benefit from exemptions from social security contributions.

These scales take into account the kilometers driven and the horsepower of the employee’s vehicle. For 2024, the rates are as follows:

Rates for one car
Fiscal power	Up to 5,000 km	From 5,001 to 20,000 km	Over 20,000 km
3 hp and less	d x 0.529	(d x 0.316) + 1,065	d x 0.370
4 hp	d x 0.606	(d x 0.340) + 1 330	d x 0.407
5 cv	d x 0.636	(d x 0.357) + 1 395	d x 0.427
6 hp	d x 0.665	(d x 0.374) + 1 457	d x 0.447
7 hp and more	d x 0.697	(d x 0.394) + 1,515	d x 0.470

d = distance travelled on business in km

For electric vehicles, travel expenses are increased by 20%.

Scales for a motorcycle
Fiscal power	Up to 3,000 km	From 3,001 to 6,000 km	Over 6,000 km
From 1 to 2 hp	d x 0.395	(d x 0.099) + 891	d x 0.248
From 3 to 5 hp	d x 0.468	(d x 0.082) + 1 158	d x 0.275
Over 5 hp	d x 0.606	(d x 0.079) + 1 583	d x 0.343

d = distance travelled on business in km

Compensation paid is exempt from social security contributions within the limits of these scales.

However, to benefit from these exemptions, you must be able to justify :

The tax rating of the vehicle used by the employee,
The distance between home and work,
The means of transport used by the employee,
The number of trips made each month.

Proof of business use of the personal vehicle is the employer’s responsibility.

It is therefore essential to ask the employee to provide all these documents (proof of address, vehicle insurance, etc.).

When mileage allowances paid do not exceed the amounts set by the tax authorities, they are deemed to have been used in accordance with their purpose.

It is still possible to pay compensation in excess of the amounts set by the tax authorities. However, in such cases, proof must be provided that the employee has actually used the indemnities for their intended purpose. Otherwise, the excess amount is subject to all social security contributions.

☝ Note: it is also possible to pay for fines incurred as a result of the employee’s bad behavior (speeding, unauthorized overtaking, etc.) or vehicle malfunction (lack of roadworthiness tests, etc.). In this case, these expenses represent a personal outlay, and constitute an element of remuneration subject to social security contributions.

Parking and toll violations are the responsibility of the registration certificate holder. Their payment therefore constitutes a benefit paid on the occasion of or in return for work, and is subject to social security contributions.

CABINET DESRUMAUX AVOCATS will be happy to answer any questions you may have about setting up a mileage allowance.

5 February 202417 April 2025

SMIC Hôtelier 2024

To combat current inflation, the minimum growth wage was raised by decree on December 20, 2023.

This decree raises the gross hourly SMIC from €11.27 to €11.65, representing an increase of 1.13% since the last increase in January 2023.

⚠ Please note: The HCR collective bargaining agreement sets an agreed minimum wage, known as the SMIC hôtelier, which is currently higher than the legal SMIC.

Minimum wages are set by a rider to the NCC dated June 1, 2023.

The minimum wages set by this rider should therefore be taken into account, rather than the legal minimum wage. In fact, since the amendment of June 1, 2023, minimum wages under the HCR collective agreement have exceeded the legal minimum wage.

The adjusted salary scale of the HCR Convention, which must be taken into account, is as follows:

Level I	Level II	Level III	Level IV	Level V
11.72 €	12.00 €	13.04 €	14.17 €	18.16 €
11.80 €	12.27 €	13.26 €	14.54 €	21.50 €
11.90 €	12.89 €	13.69 €	15.17 €	27.81 €

Failure to comply with this minimum hourly rate may result in you being ordered to pay back wages, which may represent considerable sums if the violation has lasted for several months.

DESRUMAUX AVOCATS is at your disposal to answer any questions you may have about the national collective agreement for hotels, cafés and restaurants.

5 February 202417 April 2025

The right to continuing education under the Syntec agreement

Are you covered by the Syntec collective bargaining agreement and would like to know what professional training rights your employees have?

Syntec branch players adopted an agreement on October 31, 2019 to specify and define the rights relating to professional training for branch employees, and in particular their Professional Training Account (CPF).

The CPF is an individual account, funded in euros at the end of each year through periods of activity, at a rate of 500 euros per year up to a ceiling of 5,000 euros, for a working time at least equal to half the legal or conventional working time.

This account enables each individual to benefit from continuing training, via a variety of mechanisms. It is available throughout a person’s working life, whatever their status (employee, job-seeker, self-employed). It is activated at the initiative of the beneficiary.

☝ The CPF can be implemented as part of individual, autonomous projects, or shared between employer and employee (enabling training to be carried out during working hours).

If the training is to take place during working hours, this must be agreed with the employee, who will then be paid during the training period. Working hours can also be adjusted to enable the employee to take part in the training (training partly during working hours, granting of time off, etc.).

The CPF gives access to :

Training courses leading to a diploma, professional qualification, Certificat de Qualification Professionnelle (CQP) or block of skills, registered in the Répertoire National des Certifications Professionnelles (RNCP);
Training courses leading to certification or accreditation registered in a new “Répertoire Spécifique des Certifications et Habilitations” (RSCH, which replaces the CNCP inventory), including the CléA certificate (socle de connaissances et de compétences);
Accompanying initiatives to validate acquired experience (VAE), which enables anyone who has worked in a professional activity to obtain, under certain conditions, a certification (diploma, title or certificate of professional qualification) registered with the RNCP;
Skills assessments, which enable employees to analyze their professional and personal skills, as well as their aptitudes and motivations, in order to define a professional project and, where appropriate, a training project;
Preparation for B and HGV driving licenses;
Support and advice for business start-ups and takeovers;
Actions linked to volunteer work;
Free, easy-to-access career development advice, information and support services, as part of the regional public career guidance service.

Employees can also benefit from a CPF for professional transition, subject to conditions of seniority and validation of the project by a regional interprofessional joint commission (CPIR). This scheme is aimed at employees wishing to change profession or trade. They can then mobilize the rights registered on their CPF for this purpose, and benefit from training, validation of acquired experience, certification, etc.

Finally, the Syntec collective bargaining agreement collaborates with various bodies to facilitate the organization and management of professional training services.

The ATLAS skills operator (Opco Atlas): its mission is to support companies in analyzing and defining their vocational training needs, to improve information and access for employees to training schemes, to support them in their certification mission (repositories of skills, competencies required for a diploma, etc.), to finance apprenticeship and professionalization contracts, etc.
The CPNEFP (Commission paritaire nationale de l’emploi et de la formation professionnelle – national joint committee for employment and vocational training): which draws up training policy, determines the levels of funding for apprenticeship and professionalization contracts, proposes new certification courses…
The Observatoire Prospectif des Métiers et des Qualifications (Observatory for Prospective Professions and Qualifications ): provides knowledge and analysis of the job market, and identifies sectors under pressure and dynamic sectors, in order to help employees plan for the future and create their own projects.

DESRUMAUX AVOCATS will be happy to provide you with further information on the Syntec Agreement.

5 February 202417 April 2025

Economic redundancies and directors’ responsibilities: what you need to know

Are you a company director who wants to know whether you can be held liable for redundancies?

First of all, we need to distinguish between criminal liability and civil liability. The former is incurred by the Public Prosecutor’s Office in the event of the commission of an offence under the Penal Code, in order to punish. The latter is incurred by the person who considers himself to be the victim, with the aim of compensating for the damage caused.

⚠ These two responsibilities can be combined.

As a manager, the decisions or management choices you make may have consequences that could engage your civil or criminal liability.

Civil liability

As a company director, you may be held liable for a fault in the management of your company. Although it is not, in principle, up to the judge to assess the employer’s management choices and their consequences ( Cass. plen. December 8, 2000, no. 97-44.219 ), the latter assesses the real and serious nature of the redundancies.

To do this, the judge assesses the economic reason given for the dismissal (such as economic difficulties or cessation of activity), and checks that this reason is not due to any fault on the part of the employer.

As mismanagement is not clearly defined, it is assessed by judges according to the specific circumstances of each situation. In particular, it is designed to penalize negligence and fraudulent maneuvers resulting in redundancies.

For example, the compulsory liquidation of a company resulting from the employer’s fault or carelessness, and which led to the company ceasing to operate, does not constitute a real and serious reason for dismissal(Cass. Soc., July 8, 2020, no. 18-26.140).

However, a simple error in assessing the risk inherent in any management choice does not in itself constitute such a fault (Cass. soc. December 14, 2005 no. 03-44.380 ). It may be a matter of simple negligence or carelessness.

Subsequently, in order to engage the liability of the directors, it is necessary to establish proof of this fault, and a causal link between this fault and the prejudice suffered by the company or the employees.

Third parties may also seek to hold company directors liable. However, they can only invoke faults that are detachable from the duties of management. In such cases, they will need to demonstrate intentional misconduct of a particularly serious nature, incompatible with the normal exercise of management functions.

Lastly, associates may seek to hold directors liable for any damage suffered by the company or associates, on the basis of the French Commercial Code.

Criminal liability

If a company commits a criminal offence, its directors may be held criminally liable. Such liability may arise, for example, in cases of tax fraud, forgery, negligence of safety regulations, etc.

☝ In the context of redundancies, criminal liability will therefore only be incurred if criminal offences can be characterized.

Certain offences are also provided for in the French Commercial Code, and are designed to punish managerial behavior in a context of economic difficulty. This is the case, for example, of misuse of corporate assets(article L.241-3 4° of the French Commercial Code), which consists in a manager knowingly using the company’s assets, credit, powers or votes for direct or indirect personal ends.

DESRUMAUX AVOCATS is at your disposal to help you implement redundancy procedures.

25 January 202417 April 2025

Redundancies: how can you preserve your company’s reputation?

Are you facing economic difficulties and forced to make redundancies?

Your company’s reputation may be affected by these changes.

A company’s reputation refers to the assessment of its credibility, reliability and reputation by its stakeholders, i.e. customers, employees, investors and business partners.

Reputation influences the trust and loyalty of customers and employees, public perception of the company and can have an impact on financial performance.

It is therefore important, in a context of redundancy, to preserve one’s reputation. This involves a number of steps, which cannot be listed exhaustively.

In this article, we present the various steps we recommend you take to preserve your company’s reputation when implementing a redundancy procedure.

Comply with legal procedures

The French Labor Code sets out a specific procedure for redundancies, designed to preserve the social climate, mitigate the consequences for employees and avoid litigation.

So, when it comes to informing and consulting the CSE, it is essential to work closely with employee representatives, and to explain the company’s situation clearly and transparently.

☝ It is also important to seek out genuine proposals for adaptation and redeployment, for example by sending letters to outside companies to find out about their available positions. During preliminary interviews with the employees concerned, the reasons for the dismissal should be discussed, as well as existing training and redeployment measures.

Propose accompanying measures

The French Labor Code provides for various measures to support employees and limit the consequences of redundancies for economic reasons.

Priority for re-employment

It enables former employees made redundant for economic reasons to be given priority for any job that becomes available within the company, for a period of one year from the termination of their employment contract. This possibility must be specified in the letter of dismissal.

If the employee accepts the contrat de sécurisation professionnelle, this possibility must be included in the written document setting out the economic reason for the termination.

The job must be compatible with the employee’s qualifications at the time of his departure, or with any new qualifications he may have obtained subsequently, if he has informed the employer in advance. To benefit from this scheme, the employee must request it.

When several employees wish to benefit from the priority of re-employment in the same position, it is possible to freely choose the future employee according to the interests of the company and according to criteria that you yourself can freely define. There is no imperative order determined by legal texts.

If these provisions are not complied with, both in terms of informing the employee in the letter of dismissal and informing the employee of available positions, the employee may seek damages, depending on the prejudice suffered.

If the employee has at least two years’ seniority in a company with at least 11 employees, the amount of damages will correspond to at least one month’s salary.

The professional security contract (CSP)

Once the employment contract has been terminated, the employee benefits from a range of accelerated redeployment measures offered by France Travail (formerly Pôle emploi). The employee receives redundancy pay, compensation in lieu of notice and an allocation de sécurisation professionnelle (at least equivalent to the ARE), as well as job-search support.

Reclassification leave

Any company with more than 1,000 employees must offer this leave, unless the company is in receivership or liquidation. All employees who may be dismissed for economic reasons must be informed in advance of the conditions for implementing redeployment leave. Such leave must be proposed in the letter of dismissal.

This enables the employee to benefit from training and assistance from a job search support unit, including assessment interviews and VAE… During this leave, the employee receives his usual remuneration for the duration of the notice period, then an allowance of not less than 85% of the minimum wage.

Mobility leave

The aim of this leave is to help the employee return to stable employment at the end of the leave, by providing support and training. The employee is supported in his or her transition to a new position. Periods of training and work are therefore alternated, within or outside the company (via permanent or fixed-term contracts). Employers can offer this leave to employees as part of a collective agreement or a Collective Bargaining Agreement. During this leave, employees receive their usual remuneration for the duration of the notice period, followed by an allowance of no less than 65% of their average gross remuneration over the previous 12 months.

Maintaining dialogue with employees

A company’s reputation depends first and foremost on its employees. It is therefore necessary to be clear and transparent with all partners: employees, employee representatives, managers, external collaborators… This requires several elements:

Being transparent: communicating the difficulties encountered by the company as early as possible, to avoid rumors and speculation, and receiving the difficulties encountered by employees is essential.
Know the current situation and be able to predict the future, so that solutions can be devised to secure employees’ future. It is important to communicate how the company is taking steps to recover and preserve remaining jobs.
Find solutions and offer different types of support by referring employees to professionals (psychologist, social worker, France Travail, etc.).
Raise awareness among managers and employees who are always present: make them aware of the difficulties perceived by employees and encountered by the company, (re)work on team spirit and corporate culture, to maintain a positive image of work within the company.

Monitor your e-reputation

Today, most corporate communications and information take place on websites and social networks.

The Commission Nationale de l’Informatique et des Libertés (CNIL) defines e-reputation as the online image of a company or an individual. It develops from information posted online on new media: websites, social networks, blogs, forums, video-sharing platforms… The information is visible to all, and comes from a wide variety of sources.

It’s through this means of communication that many customers and employees, potential or otherwise, find out about and develop the company’s reputation.

This means responding to criticism in a professional and balanced way. To maintain the company’s image, external communications may be necessary to communicate transparently about the company’s situation and, above all, to explain the measures taken to mitigate the consequences.

Naturally, DESRUMAUX AVOCATS will be happy to assist you with your dismissal procedures.