New Legislation | Depth Look: Collective Mutually Agreed Terminations: An Alternative To The PSE?

The Macron reform introduces a new character onto the stage of French employment law: the rupture conventionnelle collective (RCC), collective mutually agreed terminations!

The RCC's are intended to achieve headcount reductions without going through the dismissal process. The major innovation for employers is that these RCC can be entered into outside any economic difficulties or any threat to competitiveness.

What are the advantages for employers? Well, they allow the employer to:

• anticipate a reduction in headcount that seems inevitable, even if the conditions of a real and serious cause for a collective dismissal are not met;
• accompany a reorganization without having to demonstrate that it is in response to the need to safeguard competitiveness;