Corporate restructuring and reorganisation

The session provided an insightful discussion on practices and recent trends in HR aspects related to corporate restructuring and reorganisation in France.  The presentations was led by Florent Berckmans, Xavier Bailly, Wandrille Wallon and Quentin Fischer.

Key discussion points:

A lookback at of 2023: After two historically low years, 2023 emerged as a significant turning point marking a resurgence in corporate restructuring and reorganisation plans. The number of redundancy plans (Plans de Sauvegarde de l’Emploi – PSE) and collective dismissal agreements (Ruptures Conventionnelles Collectives – RCC) rose sharply in 2023. As we approach 2024, concerns have been raised regarding the potential resurgence of restructuring activities, fueled by the expected deterioration in the economic landscape.

Limited national media coverage: Despite the significance of reorganisation activities, they receive minimal attention in the national media. Before and after the Covid pandemic, the topic garnered an average of only 1.5 articles per week, primarily in the local press (Presse Quotidienne Régionale -PQR).

Insolvency proceedings: The end of government aid, which acted as a shock absorber, led to a surge in job losses attributed to insolvency proceedings (including protective measures, receivership and liquidation) in 2022 and 2023. In the first 11 months of 2023, the number of jobs affected surpassed pre-Covid, reaching 202,000 compared to 142,000 for the entire year 2019.

Social plan and litigation: Reaching a collective agreement on the Plan de Sauvegarde de l’Emploi (PSE) plays a crucial role in reducing the number of administrative claims. Statistics indicate that failed negotiation increase the risk of litigation fourfold, with a disputed appeals rate of 12.8%.

Newly arising considerations: Even though there is less pressure in terms of the economy, finance, and reputation, there are new obstacles coming to light. Heightened difficulties in recruitment are prompting a more careful approach when reducing staff numbers.  Furthermore, concerns regarding health, safety and working conditions (HSSWC) as well as psychosocial risks (PSR) are under close scrutiny by the labour administration, requiring meticulous preparation for restructuring plans.