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Do’s & Don’ts | This month: Reducing headcounts: the RCC guidebook

Do’s & Don’ts | This month: Reducing headcounts: the RCC guidebook

Published on : 10/07/2018

The Macron labor law reform created a new way to implement downsizing on a voluntary basis.  The so called “rupture conventionnelle collective” (collective mutually agreed terminations) allows employers and employees to circumvent the heavy administrative process that accompanies traditional economic layoffs.
 
This new system clearly comes with advantages but must be carefully carried out in order to not jeopardize the entire operation.
 
Here are some do’s and don’ts to keep in mind before jumping in.
 
Do set out with the negotiation partners (trade unions) the maximum number of departures, as well as what category of employees is concerned.
 
Don’t mistake the RCC system for an easy way to downsize without limits.
 
Do make sure that you’ve evaluated the other options first: you won’t be able to change your mind and dismiss the employees instead
 
Don’t make the mistake of simply offering financial indemnification: the system requires additional offers in the form of outplacement, external job offers, support for starting a business, etc.
 
Do remember that this is a voluntary process and put in place a proper call for applications. Yes, people are going to apply to be terminated in this manner.
 
Do take into account many different criteria in selecting the beneficiaries. The factors cannot only be age and seniority.
 
Don’t mistake this for a standard economic layoff. This process is mutual and one of negotiation. The employer is not in a position to strong-arm anyone.
 
Don’t forget to include the works council (CSE) in the process.
 
Flichy Grangé Avocats will be able to assist you with every step necessary to ensure your company’s proper handling of this new process. 

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