In a groundbreaking decision on 14 March 2022,(1) the Paris Court of Appeal ruled that an employment protection plan (PSE) can succeed a collective bargaining agreement (CCR).
The Court confirmed an earlier decision of the Montreuil Administrative Court, which rejected the request of several trade unions to annul a decision to approve a PSE, even though a collective redundancy agreement had modified an employment contract that succeeded a CCR by little over one month.
However, the Court considered that:
- for the purpose of approving the PSE, the company's administration does not have to verify the conditions of negotiation of the CCR (in this case, the applicants claimed that the company had been "unfair" in the collective negotiations); and
- article L. 1237-19 of the French Labour Code (RCC) does not prevent the conclusion and implementation of a PSE, as long as "the latter respects the stipulations of this agreement which are applicable to it" and that the PSE respects the period of employment guarantee that the RCC establishes.
For further information on this topic please contact Alexandra Tuil at Hogan Lovells by telephone (+33 1 53 67 47 47) or email ([email protected]​hoganlovells.com). The Hogan Lovells website can be accessed at www.hoganlovells.com.
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