What happens to employees depends on the procedure under way.
In the case of safeguard proceedings, there are no specific provisions. Contracts may be terminated for the standard reasons set out in the French Labour Code.
In the event of receivership, employment contracts continue to exist in principle. During the observation phase, only redundancies for economic reasons that are urgent, unavoidable and essential are permitted, provided they are authorised by the bankruptcy judge
In the event of compulsory liquidation, excluding business continuity, employees are made redundant within 15 days of the opening of the liquidation by the liquidator, or up to 21 days if an employment protection plan is implemented. In some cases, a company placed in judicial liquidation may be the subject of a takeover offer. If the offer is comprehensive, it will enable the company to resume its activities and safeguard some or all of its employees.
