3 Reasons to Prefer Economic Difficulties to Contractual Termination

economic difficulties

Your company is experiencing economic difficulties, is considering technological changes, a reorganization necessary to safeguard it, or may soon close for cessation of activity. It is possible that your employer offers you the conventional termination of your contract. Here are three reasons why you should refuse and risk possible redundancy.

Ble to Benefit from A Right of Reclassification and Adaptation

As soon as your employer plans to fire you for economic reasons, the law requires him to do so only as a last resort, after having taken measures such as adaptation to your job or your reclassification to another job.

In fact, your employer owes you an obligation to adapt to allow you to follow the evolution of your position, throughout your employment relationship. If necessary, you can participate in training funded by the company. It will only be a question of adapting your skills to your job and not of giving you initial training. Thus, in the event that your economic dismissal would be justified by a transformation of the job due to the use of new technologies within the company, the employer’s obligation to adapt will prevent him from simply dismissing you. to replace you with a young worker more comfortable with these technologies.

Apart from this duty to adapt, if the position has not changed but simply needs to be abolished, for example, a reclassification effort will be made. This means that before firing you, your employer will have to offer you any available job in his company or in the group to which the company belongs. This position must be compatible with your qualifications and skills. The proposed remuneration cannot then be lower than that which you received before the reclassification. With your agreement, reclassification to a lower position may also be considered.

You will be able to benefit from the professional security contract (CSP) or a reclassification leave

  • The professional security contract

Your company has at least 1,000 employees and is in receivership or liquidation. It is in this context that your dismissal is considered. Provided that you have not reached the retirement age, that you reside in France, and that you are suitable for employment, you will be able to benefit from a professional security contract the duration of which is 12 months. The latter will allow you to benefit from various measures aimed at helping you quickly find a stable job.; in particular, through support measures which may consist of periods of training and work in a company. Your employer gives you a written document specifying the content of the CSP. You will have 21 days from there to decline or accept it. In the latter case, your employment contract will then be terminated and you will receive severance pay but will not benefit from notice or compensation to compensate for the latter. You will also be able to benefit from a professional security allowance provided that you have worked for at least 1 year in the company which made you redundant.

  • Reclassification leave

Your company has less than 1000 employees, is not in receivership or liquidation, but still plans to dismiss you for economic reasons. Your employer must then offer you redeployment leave. As with the CSP, the latter aims to promote the return to employment through training actions and the help of a support unit concerning job search procedures. You will have 8 days, from your employer’s proposal, to give him your answer. Redeployment leave can last from 4 to 12 months. During the period of leave which corresponds to the notice period that you would have in the event of dismissal, you will receive your usual remuneration. Beyond that, you will receive a monthly remuneration at least equal to 65% of your gross average remuneration for the last 12 months preceding the notification of your dismissal.

You, Will, Be Able to Benefit from A Rehiring Priority

If you are made redundant for economic reasons, it means that your job has been cut, transformed or that you have refused to modify an essential element of your employment contract. In all cases, you will benefit from a rehiring priority mentioned in your dismissal letter. This translates, for your employer, into the obligation to offer you any free job compatible with your qualification, which would have to be filled in his company following your dismissal. Even if you have found a job in the meantime.

Take for example the assumption that you are made redundant for economic difficulties reasons, because of the suppression of your job, itself made necessary by the economic difficulties of your company. In the event that your business subsequently improves, you can ask your former employer to inform you of any job created or made available in his business and compatible with your qualification. If one of these jobs interests you, he will have the obligation, within the limit of one year after your dismissal, to hire you in priority for the position concerned.


As you will have understood, since escaping unemployment is your priority, redundancy will present certain guarantees. The conventional brake is thus, for example, advised in the event that you have another position insight or you wish to launch out in the creation of a company. If, on the other hand, keeping or regaining a stable job as quickly as possible is your priority, think carefully before accepting a contractual break with your employer during a period of economic difficulties.