The judgment of the commercial court falls: a procedure of judicial liquidation is open. During this liquidation, the employee is afraid of losing his job. To moderate the situation, the court can invite the works council or staff representatives to act as intermediaries. However a placement in judicial liquidation of the company does not necessarily mean a loss of employment.
In fact, two options can be offered to employees. They can continue working within the company for a new manager as part of a total or partial sale. The redundancy only occurs if the company closes permanently.
Employees do not have to declare their debts, on the other hand they must make sure that they are registered with the liquidator. This is an important step insofar as it makes it possible to constitute the statements of the company's salary claims.
Takeover of the company
In the event that the company, after agreement with the commercial court, is partially or totally transferred to a buyer, the employee can continue to work for the company.
The employment contracts are then automatically transferred to the new leader. In addition, they are not subject to any modification of conditions.
It is good to know that the buyer can send the employee a hiring proposal (or rather transfer of employment contract) even though an economic dismissal has already been notified to him by the liquidator.
What happens in the event of a refusal to hire?
It is important not to underestimate this proposition. This can have serious consequences if it is done before the end of the employee's notice period. Indeed, if it is refused by the employee, he will not be entitled to his compensation. On the other hand, if this offer is sent to him after the notice period and if the employee refuses it, he will still be entitled to his compensation.
Economic dismissal
A company which is placed in compulsory liquidation may resort to economic layoffs. If no takeover offer has been accepted, judicial liquidation is confirmed and the company closes. In the 15 days which follow this judgment, the liquidator freely pronounces the redundancies. Redundancy gives the employee the right to remuneration of all kinds due to him, compensation for termination of employment contract, profit-sharing and employee participation, compensation awarded to victims of work-related accidents and occupational diseases and finally those related to retirement. Therefore, the economic dismissal is much more advantageous than a conventional dismissal.
However, as part of a liquidation of employees retain their legal protections from the labor code. This is why certain rules must be observed under penalty of voiding the dismissal and the payment of compensation. Also, the letter of notification of dismissal must be the subject of clear reasons and aim at the judgment of the judicial liquidation of the Commercial Court.
Judicial liquidation: employees and the CSP
During the redundancy, the company is obliged to offer a professional security contract, also called CSP. If the employee accepts the CSP, his employment contract is terminated after the expiration of a 21-day cooling-off period. Making this choice generally gives the employee a better situation than a traditional dismissal. In this case the breach of contract is no longer a dismissal but a mutual agreement. The former employee will not have the status of unemployed but of trainee in vocational training. Pôle Emploi will still cover its indemnities: allowances are furthermore increased compared to a traditional dismissal. The employee is entitled to 80% of his average gross salary.
