Bankruptcy Law

A social and economic committee  must be set up in companies with at least eleven employees .
The social and economic committee has the right to alert the employer for details, if not explanations, in case of infringement of employees' rights, of serious and imminent danger to them or when it is aware of “facts likely to affect the economic situation of the company in a worrying way” . The purpose …

Economic alert right

A social and economic committee  must be set up in companies with at least eleven employees .

The social and economic committee has the right to alert the employer for details, if not explanations, in case of infringement of employees' rights, of serious and imminent danger to them or when it is aware of “facts likely to affect the economic situation of the company in a worrying way” . The purpose of the warning is to draw the employer's attention to the difficulties discovered, in the event that he is unaware of them, and to lead him to adopt appropriate measures to avoid their aggravation and to find a solution.

The request shall be placed on the agenda of the next committee meeting attended by the employer. If the committee has not been able to obtain a sufficient response from the employer or if the latter confirms the worrying nature of the situation, it draws up a report. In companies employing at least one thousand employees and in the absence of an agreement as provided for in Article L. 2315-45 of the Labor Code , the report is drawn up by the economic commission as provided for in Article L. 2315-46 of the same code . This report, as part of the right to an economic warning, is sent to the employer and to the auditor.

The report concludes in principle with an opinion on the advisability of referring the matter to the administrative or supervisory body in the case of companies or legal entities that have such a body, or of informing the partners in the case of other types of companies or the members in the case of economic interest groupings. In the light of this report, the social and economic committee can decide, by a majority of the members present, to proceed with the referral or to have the information provided. In this case, the opinion of the chartered accountant is attached to the referral or to the information . In companies with a board of directors or a supervisory board, the request for explanations on the worrying nature of the economic situation of the company is put on the agenda of the next meeting of the board of directors or the supervisory board, provided that the matter has been referred to it at least fifteen days in advance. The employer's reply must include reasons. In other legal entities, these provisions apply to the body responsible for administration or supervision, where such a body exists. In other forms of companies or in economic interest groups, when the social and economic committee has decided to inform the associates or members of the situation of the company, the manager or the directors communicate to them the report of the economic commission or the committee . The information relating to the company communicated in application of Articles L. 2312-63 to L. 2312-69 of the Labor Code is by nature confidential. Any person likely to have access to it is bound by an obligation of discretion .

"A company agreement concluded under the conditions provided for in Article L. 2232-12(1) may provide for the creation of additional committees to examine particular problems.

If necessary, the employer may appoint to these committees, in an advisory capacity, experts and technicians belonging to the company and chosen outside the committee. The provisions of Article L. 2315-3 relating to professional secrecy and the obligation of discretion are applicable to them. 

The reports of the commissions are submitted to the deliberation of the committee".

"In the absence of an agreement as provided for in Article L. 2315-45, in companies with at least 1,000 employees, an economic commission is created within the social and economic committee or the central social and economic committee.

This commission is in charge of studying the economic and financial documents collected by the committee and any question submitted to it by the latter".

Bankruptcy Law

15. Economic alert right

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Les notions juridiques connexes

15. Economic alert right

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Les notions juridiques connexes

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