European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Art.L.414-4, Art.L.414-5, Art.L.414-6, Art.L.423-3, Art.L.432-25
The employer must inform and consult employee representatives before any important decision on economic or financial decisions which could have an impact on the structure of the firm or on the level of employment, as well as on any changes in technology, equipment and working methods and on the impact of these changes on working conditions in the company.
This includes measures such as vocational training and retraining planned to be introduced by the employer. The employer has to inform staff representatives about the overall operation and situation of the company, including the recent and prospective evolution of the firm's activity and its economic situation. This information must be provided by companies on a monthly basis at a joint committee (in company's with 150 or more employees) or during regular meetings with management and employee representatives.
More detailed information has to be provided to staff representatives on an annual basis in public limited liability companies (Société Anonyme, SA). The employer must inform and consult with staff representatives twice a year regarding any forecasted developments of employment in the company and on precautionary measures taken by the company in order to tackle threats to employment. Moreover, the manager has to inform and consult the joint committee (comité mixte), once a year at least, about the company’s current and future labour force needs and about vocational training and retraining.
Employee representatives must be informed in good time ahead of any decision to enable them to formulate an opinion. Where employee representatives adopt an opinion and communicate this to central management, management must respond, also 'in good time', with an explanation of their proposed decision. Any company which, despite its legal obligation, has not yet set up a staff delegation must first hold related elections before initiating any collective redundancy procedure.
The employer can refuse to inform or consult employee representatives if, on objective criteria, this might be severely detrimental to the business. Such a decision can be challenged by means of an appeal to the administrative authority.
There is a specific consultation in case of collective dismissal. An employer who intends to dismiss, for reasons that have nothing to do with the employee's person, at least 7 employees over a period of 30 days or at least 15 employees over a period of 90 days must apply a collective redundancy procedure.
The collective redundancy procedure contains 4 main stages:
Before initiating a collective redundancy, the employer must begin negotiations with the staff representatives in order to establish a redundancy plan for the concerned employees.
The law of 23 July 2015 reforming employee representation in companies (Loi du 23 juillet 2015 portant réforme du dialogue social à l'intérieur des entreprises) (EurWork, Luxembourg: Reform of employee representation in companies, 15 December 2015) abolished joint committees with effect from the date of the next workplace elections which were scheduled in 2019. Therefore, the process described in article L.423-3 of the Labour Code was abolished too. From the 2019 social elections forward, the tasks and duties assigned to joint works committees were transferred to the staff delegations in companies which had at least 150 staff during the 12 months preceding the first day of the posting of the announcement of elections.
Eurofound (2015), Luxembourg: Staff information and consultation on restructuring plans, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-restructuring-plans/luxembourg
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