Since 2022, redundancy plans have been surging, particularly in the tech sector. These episodes, which are very delicate on a human level, are crucial in the life – and survival –

68,000 tech employees have lost their jobs since January 1, 2023. The major players in the sector are scaling back their workforces, to say the least. The best known, Amazon, Microsoft and Google, have already announced the dismissal of 8,000, 10,000 and 12,000 employees respectively. The wave is spreading across the entire sector: Meta, Salesforce, IBM, Payfit… and it is also affecting startups and unicorns, with Payfit, Paddle and WeFox leading the way. In such critical moments, in the age of virality, any misstep can prove very costly, both humanly and financially. How can poor communication be avoided? What pitfalls should be avoided and what levers can ensure a responsible redundancy plan? Hélène Daher, founder of the law firm DaherAvocats, an expert in large-scale reorganizations for more than 15 years, shares with us the keys to avoiding mistakes and acting as an employer, with loyalty.

Redundancy plans: taking the time to prepare

“One of the worst situations is supporting a company on a poorly structured restructuring project, or having to catch up on mistakes. In terms of the relationship with employee representatives and employees, it is catastrophic because they feel they are not being taken seriously,” explains Hélène Daher. Her advice? Proper preparation: “Redundancy plans (now referred to as ‘Employment Safeguarding Plans’, editor’s note) are governed by very strict procedures. There is no room for improvisation or approximation. This requires a preparation period of around one to two months.” During that period, it is necessary to identify the applicable legal rules and address a certain number of structuring questions: why carry out this reorganization project? What is the ground for dismissal? How many positions need to be eliminated, and which ones, in which departments? Another point of vigilance highlighted by Hélène Daher: “The wording is very important to define the ground. From a legal standpoint, it must be economic: economic difficulties, safeguarding competitiveness… and not a search for profitability.”

Once this framework has been established, the time required to draft the legal documents is not negligible: “First, what is known as ‘Book II’ must be drafted, including the information note on the grounds and economic reasons for the project, the professional categories concerned, as well as the order criteria. Then, ‘Book I’, which concerns the Employment Safeguarding Plan. It includes the targeted social support measures adapted to the populations concerned, and the budget, among other things,” explains Hélène Daher. The company is now ready to refer the matter to the CSE and the labor administration “with a project that is coherent, with sufficient resources.”

Being loyal to all the stakeholders in the company

A guiding line marked by loyalty must be embodied threefold throughout the redundancy plan.

In the very definition of the project: “A redundancy plan must not be an opportunity to dismiss people whom the company does not consider to be at the required level. It is necessary to remain confined to the economic ground: even though professional qualities are of course taken into account in the order criteria, this is in no way a tool for dismissal on personal grounds, because by definition, the economic ground is unrelated to the person of the employee,” warns Hélène Daher.

At the heart of relations with employee representatives: “Transparency and respect must be shown. They are partners: the employer and the employee representative bodies (the single employee representative body, editor’s note) must therefore co-build this project together.”

In the support measures offered: “The project must be budgeted in order to find the best solutions for the impacted employees, either by avoiding dismissals or by limiting their impact. This can include redeployment, outplacement, a more generous severance payment or even salary differential support. In other words, if the employee’s new job pays slightly less, the company may financially compensate for the difference for a given period,” continues Hélène Daher.

Knowing how to communicate, between transparency and good timing

The risk of poorly controlled communication? A loss of trust, often irreversible. Hélène Daher points to three key moments.

Before the launch of the redundancy plan: this is a pivotal moment because it is necessary to ensure the confidentiality of those involved. “Leaks must be avoided: for that, I recommend drafting reinforced confidentiality agreements with the people who will work on the project (HR, communications, senior management, etc.).”

The referral to employee representatives: at this stage, the CSE has priority in receiving the information. But immediately afterwards, the employer and the employee representative bodies agree that management should make an official announcement to be circulated to all employees.

At the time of the announcement: “At that precise moment, it is important to convey the message that this is only a project, the contours of which will evolve taking into account the various consultations planned with the CSE,” emphasizes Hélène Daher.

Alongside the announcement, a range of assistance and support measures is strongly recommended. First, for managers, who have a cardinal role with the teams: “They must be trained so that they convey the right level of information and a high degree of accuracy. The format? An evolving Q&A is a good tool.” In addition, the company can open an “information and advisory space” for all employees. The aim is for them to have as much information as possible. “Do not forget to call on a specialized psychosocial risks (PSR) firm: I am thinking in particular of providing a helpline for all the people concerned and those who remain,” insists Hélène Daher.

Preparing for “afterwards”: a phase conducive to collective resilience

The entire procedure is framed within a timeframe depending on the size of the redundancy plan: “It can take 2, 3 or 4 months of consultation with the CSE,” explains Hélène Daher. However, this period must not overshadow the preparation of a new chapter for the company in order to recreate a collective dynamic. “This phase is still too often overlooked. Yet we must think of those who remain: rebuilding a collective damaged by the ordeal, helping employees regain their bearings and a sense of direction,” concludes Hélène Daher. Listening and psychological support remain essential, without forgetting the role of the leader in driving new momentum.

Article edited by Ariane Picoche, photo: Thomas Decamps for WTTJ