Economic dismissal in a company in receivership: what is the procedure?
Verified 14 October 2026 - Public Service / (Prime Minister)
Additional cases ?
When a company is in financial difficulty, it may be placed in receivership as part of a collective procedure. It begins with a period of observation. This period is used to make a diagnosis of the situation and to determine the measures that will allow the activity to continue. Following the observation period, the court may set up a judicial reorganization plan. We're taking a look at the regulations.
At the beginning of the collective proceedings, the commercial court invites the employer to appoint or have elected an employee representative. The main task of the employee representative is to check the statement of wage claims established by the judicial representative. In the absence of CSE: titleContent, it shall carry out the tasks of the members of CSE.
The procedure for economic dismissal differs depending on whether the company is in observation period or in the recovery plan.
During the observation period
During the period of observation of the procedure, dismissals on economic grounds may be authorized by the Commissioner, if they are urgent, inevitable and indispensable.
Step-by-step approach
CSE consultation procedures differ depending on the number of employees made redundant and the number of employees employed by the company.
There are 2 categories of dismissal:
- Small dismissal: from 2 to 9 employees licensees regardless of the company's workforce
- Great dismissal: at least 10 employees laid off.
The procedure of great dismissal presents differences depending on the size of the company less than 50 employees or 50 or more employees.
FYI
In the absence of CSE, the employee representative shall be consulted instead of CSE. It carries out the duties of the members of CSE.
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Small layoffs of 2 to 9 employees
Pre-termination consultation provides the CSE with useful information about the proposed mass termination. Only one meeting is mandatory.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned on the health, the security or the working conditions company employees.
The CSE must give its opinion on the proposed redundancy within a maximum period of 1 month.
After the CSE meeting, the employer or the administrator defines the criteria used to determine the order of redundancies and informs the Dreets: titleContent of the proposed dismissal.
Large redundancy in a company with less than 50 employees
In the event of economic dismissal of at least 10 persons in a company with fewer than 50 employees, the CSE may issue an opinion after 1 meeting only on the proposed collective redundancy.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned in relation to health, safety or working conditions
- Measures envisaged for limit redundancies and for facilitate reclassification of the employees concerned.
FYI
All the information provided to CSE at the time of the convening of the meetings and the minutes shall be communicated simultaneously to the Dreets: titleContent.
The minutes shall include the views, suggestions and suggestions of CSE.
The employer or the administrator inform the Dreets of dematerialized way on the following website:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
In case of malfunction of the computer reporting system, the transmission of information and requests shall take place by any other means (by registered mail for example).
Large layoff in a company of 50 employees and more
In the event of economic dismissal of at least 10 persons in a company with at least 50 employees, the CSE may issue an opinion after 1 meeting only on the proposed collective redundancy. However, in case of recourse to an expert, a 2nde CSE meeting is organized.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned on the health, the security or the working conditions company employees.
The employer or the administrator shall establish a job protection plan (PSE) and forward it to CSE and the Dreets: titleContent.
The PSE is transmitted to the Dreets of dematerialized way on the following website:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
In case of malfunction of the computer reporting system, the transmission of information and requests shall take place by any other means (by registered mail for example).
Who shall I contact
The notification shall be made not earlier than the day following the date scheduled for the CSE meeting.
Dreets has a deadline of 8 days from the last CSE meeting for certify or validate the job protection plan.
In the event of an adverse decision, the CSE shall be consulted within 3 days. If necessary, the amended document and the CSE opinion shall be forwarded to Dreets, which shall take a decision within 3 days.
The administrator address at commissioner judge an application for authorization of dismissals.
The administrator shall attach the following documents to the application:
- CSE Opinion
- Justifications for its requests to facilitate compensation and reclassification of employees
- Decision of the Dreets: titleContent in case of job protection plan.
The order rendered by the commissioner judge include the following information:
- Number of employees authorized for dismissal
- Activities concerned
- Professional categories concerned.
The order is notified to the CSE.
In the absence of CSE, the order is notified to the employee representative.
It shall be transmitted to the following bodies:
- Public Prosecutor's Office
- Administrator
- Judicial agent.
Where the employer intends to dismiss an employee for economic reasons, it must in principle call for a preliminary interview.
During this preliminary interview, the employee can be assisted.
In case of dismissal of at least 10 employees in a company in which there is a CSE: titleContent, there is no prior maintenance. Exception: One protected employee is called for a preliminary interview.
Warning
The employer must propose to the employee a professional security contract (CSP)regardless of the size of the company.
The employee is informed of his dismissal for economic reasons by registered mail with acknowledgement of receipt.
If the employee accepts the professional security contract (CSP), the written statement stating the cause of the termination must be given to the employee during the dismissal procedure and at the latest at the time of acceptance of the CSP.
The termination letter must include the following:
- Economic reasons (e.g. economic difficulties) and their impact on the employee's employment or employment contract (e.g. job termination)
- Prior efforts of training, adaptation and reclassification employee
- Possibility to benefit from a rehire priority for 1 year from the termination of the employment contract and the conditions for its implementation.
A model letter of economic redundancy is available:
Template Letter - Final Letter of Economic Termination - CSP
If the dismissal for economic reasons is notified during the 21-day cooling-off period to join the CSP, the employer shall:
- Recalls the end date of the reflection period
- Clarifies that in case of refusal, this letter constitutes the notification of dismissal.
This is known as notification of dismissal as a precautionary measure.
A model letter of economic dismissal sent to protective title is available:
Template Letter - Letter of economic dismissal sent as a precautionary measure - CSP
Warning
The 7-day or 15-day time limits for economic redundancies do not apply.
The employment contract is terminated at the end of the notice of dismissal.
In case of acceptance of professional security contract (CSP), the employment contract shall be terminated at the end of the 21-day reflection period.
In the event of dismissal from 2 to 9 employees, the Dreets: titleContent must be informed of dismissals.
What information does Dreets receive?
The employer must inform Dreets of the dismissals, within 8 days of sending the termination letters to the employees concerned.
It shall then provide the following information:
- Name and address of the company
- Nature of the activity and number of employees of the company or establishment
- Surnames, forenames, nationality, date of birth, sex, address, employment and qualification of the dismissed employee(s)
- Date of the notification redundancies for the employees concerned.
How does the employer transmit the information to Dreets?
The employer shall inform Dreets of the dismissals of dematerialized way on the following website:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
Please note
In case of malfunction of the computer reporting system, the transmission of information and requests shall take place by any other means (by registered mail for example).
During the recovery plan
Where there are serious possibilities for the company to recover, the court shall put in place a judicial recovery plan ending the period of observation. This plan is intended to enable the company to continue its activities, to maintain its jobs and to pay the passive.
Step-by-step approach
The consultation procedures of the Dreets: titleContent differ according to the number of employees made redundant and the number of employees in the company.
There are 2 categories of dismissal:
- Small dismissal: from 2 to 9 employees licensees regardless of the company's workforce
- Great dismissal: at least 10 employees laid off.
The procedure of great dismissal presents differences depending on the size of the company less than 50 employees or 50 or more employees.
The CSE must deliver its opinion on the proposed redundancy by working day before the commercial court hearing.
FYI
In the absence of CSE, the employee representative shall be consulted instead of CSE. It carries out the duties of the members of CSE.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Small layoffs of 2 to 9 employees
Pre-termination consultation provides the CSE with useful information about the proposed mass termination. Only one meeting is required.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned on the health, the security or the working conditions company employees.
Large redundancy in a company with less than 50 employees
In the event of economic dismissal of at least 10 persons in a company with fewer than 50 employees, the CSE may issue an opinion after 1 meeting only on the proposed collective redundancy.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned in relation to health, safety or working conditions
- Measures envisaged for limit redundancies and for facilitate reclassification of the employees concerned.
Large layoff in a company of 50 employees and more
In the event of economic dismissal of at least 10 persons in a company with at least 50 employees, the CSE may issue an opinion after 1 meeting only on the proposed collective redundancy. However, in case of recourse to an expert, a 2nde CSE meeting is organized.
The information transmitted to CSE with the convening of the meeting includes the following items :
- Reasons economic, financial or technical aspects of the proposed redundancy
- Number of redundancies considered
- Professional categories concerned (for example, workers, employees and supervisors or executives)
- Criteria proposed for the order of dismissals
- Number of employees, whether permanent or not, employed in the establishment
- Provisional schedule redundancies
- Economic measures envisaged
- Possible consequences of redundancies planned on the health, the security or the working conditions company employees.
The employer or the administrator shall establish a job protection plan and shall transmit it to the CSE and the Dreets: titleContent.
Who shall I contact
Dreets has a deadline of 8 days from the last CSE meeting to approve or validate the job protection plan.
In the event of a negative decision, the CSE shall be consulted within 3 days and, if necessary, the amended document and the CSE opinion shall be forwarded to Dreets. It shall take a decision within 3 days.
What should the insolvency administrator do?
When the administrator provides for redundancies for economic reasons, it is attached to the report graft (or produced at the hearing) the following:
- CSE Opinion
- Copy of the letter informing the Dreets: titleContent of the proposed dismissal.
As soon as the draft plan is filed with the Registry, the Registry shall convene the CSE by letter RAR: titleContent.
To whom should the decision be forwarded?
The judgment stopping or refusing the plan is notified to the CSE.
It is also made known of the public prosecutor's office and of legal representatives by the Registry, within 8 days of the date of the judgment.
When a job protection plan (PES) must be done, the administrator transmits the PSE to Dreets within 1 month after the judgment.
What should the Commercial Court do?
The plan is decided by the commercial court.
The judgment adopting the plan shall state the following:
- Number of employees authorized for dismissal
- Activities and professional categories concerned.
FYI
Where the dismissal concerns a protected employee, the intention to break must be manifested within 1 month after the judgment.
The request for validation of the collective agreement or of approval of the unilateral document shall be sent to Dreets after the judgment adopting the recovery plan, within one month of the judgment.
Dreets has a deadline of 8 days from the receipt of the application to approve or validate the job protection plan.
Where the employer intends to dismiss an employee for economic reasons, it must in principle call for a preliminary interview.
During this preliminary interview, the employee can be assisted.
In case of dismissal of at least 10 employees in a company in which there is a CSE: titleContent, there is no prior maintenance. Exception: One protected employee is called for a preliminary interview.
Warning
The employer must propose to the employee a professional security contract (CSP)regardless of the size of the company.
The employee is informed of his dismissal for economic reasons by registered mail with acknowledgement of receipt.
If the employee accepts the professional security contract (CSP), the written statement stating the cause of the termination must be given to the employee during the dismissal procedure and at the latest at the time of acceptance of the CSP.
The termination letter must include the following:
- Economic reasons (e.g. economic difficulties) and their impact on the employee's employment or employment contract (e.g. job termination)
- Prior efforts of training, adaptation and reclassification employee
- Possibility to benefit from a rehire priority for 1 year from the termination of the employment contract and the conditions for its implementation.
A model letter of economic redundancy is available:
Template Letter - Final Letter of Economic Termination - CSP
If the dismissal for economic reasons is notified during the 21-day cooling-off period to join the CSP, the employer shall:
- Recalls the end date of the reflection period
- Clarifies that in case of refusal, this letter constitutes the notification of dismissal.
This is known as notification of dismissal as a precautionary measure.
A model letter of economic dismissal sent to protective title is available:
Template Letter - Letter of economic dismissal sent as a precautionary measure - CSP
Warning
The 7-day or 15-day time limits for economic redundancies do not apply.
The employment contract is terminated at the end of the notice of dismissal.
In case of acceptance of professional security contract (CSP), the employment contract shall be terminated at the end of the 21-day reflection period.
In the event of dismissal from 2 to 9 employees, the Dreets: titleContent must be informed of dismissals.
What information does Dreets receive?
The employer must inform Dreets of the dismissals, within 8 days of sending the termination letters to the employees concerned.
It shall then provide the following information:
- Name and address of the company
- Nature of the activity and number of employees of the company or establishment
- Surnames, forenames, nationality, date of birth, sex, address, employment and qualification of the dismissed employee(s)
- Date of the notification redundancies for the employees concerned.
How does the employer transmit the information to Dreets?
The employer shall inform Dreets of the dismissals of dematerialized way on the following website:
Portal for the dematerialized management of collective breaks in employment contracts (RUPCO)
Please note
In case of malfunction of the computer reporting system, the transmission of information and requests shall take place by any other means (by registered mail for example).
Who can help me?
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For more information on this subject, you can contact Allô Service Public.
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The informants who answer you belong to the ministry responsible for labor.
Dismissal order criteria
Procedure for consultation of staff representatives
Meeting of staff representatives
Information from the Dreets
Economic dismissal in the context of a judicial reorganization procedure
Job Safeguard Plan
Security contract
Restructuring and downsizing
Protected employee pre-interview
Information of the Dreets of dismissals
Opening of the procedure
Possibility of dismissal during a period of judicial reorganization
Time limits for CSE to issue the opinion and content of the order of the judge commissioner
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