The social impact of the restructuring plan

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The restructuration’s Social consequences are often feared and even, sometimes, badly anticipated. Though, they are an essential component of such operations. The human factors are, of course, necessary and must be followed in good conditions, such as the prevention organized by the briefing and constant formation of the employees. When the time of restructuration comes, it is crucial that some formalities have to be respected.

Rules of restructuring : the legal questions

First, restructuration imposes a set of modifications in the enterprise’s personnel’s representation.  Le setting committee, the works council, as well as the central work council, as appropriate, must be checked, in advance by the employer, especially when it comes to the enterprise’s organization the economic and juridical organization, equity, fusions, and the sale of shares, but also in cases of bid or public exchange offer. However, the group committee’s consultation is only legally accepted in case of a bid, a public exchange offer, or a restructuration that affects the workforce’s interests. The consultation must precede the decision. The representation organisms must have detailed written information in order to be able to express a valid opinion.

Warranties of the personnel’s representative

Restructuring operations preserve the personnel’s representative warranty except if the enterprise is denied its juridical autonomy. The warranties are maintained when the enterprise becomes a distinct establishment and when the modification touches one or more distinct establishments that conserve this characteristic. Moreover, the staff’s variation may also force the enterprise to create an institution, like the works council, or in the contrary, to remove it.

Conclusion : restructuring law

Finally, the enterprise’s restructuring operations entail miscellaneous consequences on the collective advantages. And so, the conventions and agreements may be questioned with transitory procedures that allow new negotiations. Lawyers are always recommended in such cases.