Companies in difficulty
Published on August 14, 2023 – Directorate of Legal and Administrative Information (Prime Minister)
The employer of a company with less than 50 employees placed in receivership or in compulsory liquidation can notify the dismissal for economic reasons of more than 10 employees without having to observe the legal deadline of 30 days. This is what the Court of Cassation stated in a judgment delivered by the social chamber on May 17, 2023.
An employee dismissed for economic reasons seized the judge with a claim for compensation for irregular dismissal. In this case, her employer was placed in receivership due to financial difficulties and dismissed the applicant as part of a redundancy plan 26 days after the notification of the redundancy plan to the Dreets: titleContent. The applicant maintains that her employer should have respected the legal period of 30 days between this notification and the announcement of the termination of her employment contract.
The Court of Appeal condemns the employer for non-compliance with the dismissal procedure.
The Court of Cassation reverses and annuls the judgment of the Court of Appeal. It considers that the reorganization or judicial liquidation renders inapplicable the 30-day period from which the employer must notify the dismissal for economic reasons of more than 10 employees. This is explained by the emergency situation encountered by the company and by the short period of insurance of employees against the risk of non-payment.
Thus, in companies with less than 50 employees in collective proceedings, the employer is not required to respect the legal deadline of 30 days to notify the dismissal for economic reasons of at least 10 employees.
2023-08-13 22:26:41
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