Employment Protection Plans (PSE) have become essential mechanisms during periods of economic restructuring of companies. Their implementation requires delicate management to support affected employees and prepare the company for the future. This is where transition management comes in, providing essential external expertise to effectively manage the PES while preserving internal cohesion. In this article, we explore the essential role of interim management in the success of PES and its impact on the future of the world of work.
What is a PES?
The PSE or Employment Protection Plan is a legal procedure established by article L 1233-61 of the Labor Code , within the framework of the social modernization law of January 17, 2002. Its main objective is, as its name indicates, to prevent or limit collective layoffs within a company in economic difficulty.
Mandatory measures include:
● A redeployment plan for those made redundant.
● The creation of new activities by the company.
● Training actions or validation of knowledge for employees.
● Measures to reduce and adjust employees’ working hours.
The employer obligations of a PSE
The employer’s obligations within the framework of a PSE are defined by labor legislation in France. They include:
- Information and consultation of staff representatives: before any collective dismissal decision, the employer must inform and consult the representatives of the Social and Economic Committee (CSE). It must provide all relevant information on the reasons and consequences of the PSE, as well as on the measures envisaged to avoid or limit layoffs.
- An internal reclassification plan: the employer must do everything possible to reclassify dismissed employees within the company or its subsidiaries, to the extent possible and taking into account their skills and qualifications.
- An external reclassification plan: if internal reclassification is not possible, the employer must support dismissed employees in their search for employment outside the company. This can include hosting job fairs, helping with CV and cover letter writing, and partnering with recruitment agencies.
- Support measures: the PSE must provide support measures for laid-off employees, such as adapted professional training, skills assessments, business creation aid or pre-retirement measures if they are provided for by collective convention.
- Compliance with deadlines and procedures: the employer must respect the deadlines and procedures provided for by law concerning the information and consultation of staff representatives, as well as the implementation of PSE measures.
- Notification to the administrative authority: the employer is required to notify the PSE to the competent administrative authority, generally the DIRECCTE.
- Communication to employees: The employer must inform each employee affected by the PSE of their dismissal and the measures that will be put in place to support it.
Why set up a PES and what are the conditions?
The PSE is set up with the aim of managing the consequences of a company’s economic difficulties in a responsible and humane manner , seeking to preserve jobs as much as possible and supporting dismissed employees in their professional reorientation. The PSE is compulsory for companies with more than 50 employees , if they provide for the redundancy of at least ten employees over a period of ten days.
To be able to set up an economic dismissal, the company must meet the following conditions:
- Implementation in the company of a new technology leading to the loss of the employee’s job,
- Cessation of activity of the company, unless this cessation of activity is due to the employer,
- Economic difficulties, i.e. significant change in at least one of these three parameters: orders or turnover, cash flow or gross operating surplus, other element which justifies economic difficulties,
- Need to safeguard the competitiveness of the company,
- Search for alternative solutions: before setting up a PES, the company must have examined all possible alternatives to avoid or reduce layoffs (internal reorganization, redeployment of employees in other sectors, search for new markets, etc.) .
PSE issues and impacts on employees
For the survival of the company, a good management of the PSE is necessary. Indeed, the challenge of the Job Protection Plan is above all to make changes to ensure the sustainability of the company. The PSE is based on a temporary solution to reduce costs, restructure and adapt to new economic challenges.
- However, the impacts of the PES on employees can be significant and result in:
- Collective layoffs,
- Stress and worry about their professional and financial future,
- Internal or external reclassification requiring rapid adaptation to new positions or working environments,
- Support measures such as training, skills assessments, or job search assistance to facilitate their professional transition,
- A poor social climate within the company, creating tensions between management and employees, as well as between the employees themselves.
It is important to emphasize that, within the framework of a PES, particular attention must be paid to the people who remain in the company. The PSE can modify their working conditions, increase the workload or even generate stress.
A Job Protection Plan always has significant consequences in terms of psychosocial risks. It is therefore essential to carry out the PES carefully, in particular by calling on external professionals.
How long does a PES last?
The duration of an Employment Protection Plan (PSE) may vary depending on the complexity of the situation and the measures put in place. In general, the process of implementing a PES can take several months , from the first stages of information and consultation of the CSE to final validation by the competent administrative authority. Negotiations, the search for alternative solutions, support for dismissed employees and the implementation of reclassification measures can extend the duration of the PSE. It is therefore essential to anticipate the time required to successfully complete this socially complex procedure.
Can we do two PSEs in a row?
Yes, it is possible to make two PSEs successively if the company continues to encounter significant economic difficulties requiring further adjustments. Each PES must be justified by real economic reasons and meet legal criteria. However, in the event of successive dismissals, the company must ensure that it respects the legal deadlines and informs and consults the CSE again for each new procedure.
How to announce it to your colleagues?
Announcing a PES to your employees is a delicate step that requires transparent, empathetic and respectful communication. Favor in-person communication, bringing together the employees concerned to explain to them the reasons for the PSE, the measures envisaged, as well as the possibilities of reclassification or support proposed. It is essential to answer their questions and take their concerns into account. Involve staff representatives in communication to establish a climate of trust and facilitate dialogue.
Who is responsible for validating a company PES?
Once the plan has been validated by the various parties concerned, the Job Protection Plan must be sent to the staff representatives, to all the employees as well as to the DIRECCTE.
In the event of dispute of the plan by the staff representatives, it is the DIRECCTE which ensures the validity of the PSE. After this validation, the planned measures are put in place. DIRECCTE will ensure that the PSE complies with legal obligations, that it is sufficiently detailed and that it aims to preserve the rights and interests of the employees concerned.
The risks of the job protection plan
As part of a PSE, special attention must be paid to the people who remain in the company. The PSE can modify their working conditions, increase the workload or even generate stress.
A job safeguard plan always has significant consequences in terms of psychosocial risks .
It is therefore essential to carry out the PES carefully, in particular by calling on external professionals.
The 5 steps of a Job Protection Plan
The PSE is drawn up by the employer, in consultation with various bodies such as staff representatives, members of the works council and staff representatives.
A PSE generally proceeds as follows:
Step 1: Check that the redundancy project is covered by a job safeguard plan.
Step 2: Develop the draft ESP.
Step 3: Inform and consult staff representatives.
Step 4: Submit the PSE to the administration for control.
Step 5: Implementation of the Job Protection Plan.
The PES is sometimes subject to collective agreements which precisely regulate the measures to be put in place.
Once the plan has been validated by the various parties concerned, the Job Protection Plan must be sent to the staff representatives, to all the employees as well as to the DIRECCTE.
In the event of dispute of the plan by the staff representatives, it is the DIRECCTE which ensures the validity of the PSE. After this validation, the planned measures are put in place.
Finally, employees are notified by posting or any other internal communication tool.
Manage changes with an innovative transition PSE Manager
Unlike traditional PES focused on cost reduction, the transition PSE, managed by a transition manager specialized in PSE , places emphasis on transformation. Prepare your company for a promising future by identifying the necessary skills and promoting internal mobility.
Call on an Interim Manager to manage a PSE
Using an interim manager is a solution that many companies favor today to successfully carry out a PSE.
The PSE is indeed a complex and stressful process for employees. The human stakes of a PSE are obviously significant and risk undermining the motivation of employees.
In this context, a PSE transition manager has his place. As a third party to the company, he brings an outside perspective and is not subject to internal pressures which can complicate the issues of the PSE.
The interim manager can assist the company in defining the PSE strategy at different levels:
● He takes part in the various meetings to present the PSE, he explains the situation and the issues to all the employees as well as to the staff representatives.
● He also intervenes during individual interviews with the employees concerned by the PSE.
● He exchanges with the employees, and helps them to identify the advantages of the redeployment project proposed to them.
● The interim manager also contributes to the drafting of the PSE.
● It also helps to define the conditions for a judicious reclassification consistent with the needs of the company. His excellent knowledge of the market can lead him to consider reclassifications internally (which are always to be preferred), or in other structures.
Our advice for choosing the right PSE interim manager
To carry out a PSE , an interim manager must possess a certain number of professional and personal skills:
● Control of HR processes.
● Managerial agility.
● Leadership.
● Ability to collaborate.
With its pool of more than 15,000 interim managers, Reactive Executive adapts to your needs. It is important for us to identify precisely the expectations of our customers, to put them in contact with a seasoned professional, able to carry out the Job Protection Plan in optimal conditions.
By using an interim management firm, a company can be sure of carrying out its PSE under the best possible conditions for its employees, while reducing the financial impact.
