In companies with a workforce of 11 employees for 12 consecutive months, the employer is required to organize elections for the Social and Economic Committee (CSE). The elections may result in the election of staff representatives, or in a declaration of failure to act.
But the employer's failure to act can have serious consequences for the company's operations:
1/ Obstruction
Failure to allow a company to have a CSE is punishable by 1 year's imprisonment and a fine of €7,500 for an individual and €37,500 for a corporate body.
2/ Profit-sharing agreement
Only companies that have complied with their obligations in terms of employee representation are eligible for social security exemptions on profit-sharing. Failure to do so exposes the employer to the risk of URSSAF reassessment.
3/ Physical unfitness
The CSE must be consulted on the employee's redeployment.
In the event of dismissal for physical unfitness, failure to consult the CSE exposes the employer to :
- In the event of dismissal for unfitness for work: minimum penalty of 6 months' pay for failure to consult;
- In the case of dismissal for non-professional incapacity: failure to consult the employee deprives the dismissal of real and serious grounds.
4/ Collective redundancies
If an employer carries out a mass redundancy plan without employee representatives or a report on the absence of employee representatives, he is liable to pay a minimum of one month's salary to the dismissed employees (in addition to the redundancy and notice payments).
5/ Corporate use
The employer's termination of a customary practice in force in the company is irregular if staff representatives have not been informed and consulted beforehand. Failure to organize professional elections prevents the termination of the practice, which therefore remains in force, as employees can continue to claim its benefits.
6/ Conclusion of collective agreements
The law allows collective agreements to be signed with people other than union delegates, and in particular with the elected members of the CSE. In certain cases, the absence of a procès-verbal de carence may lead to the cancellation of the collective agreement, with significant financial consequences for the company.
7/ Damages
Employees are entitled to claim damages. We therefore invite you to organize your CSE elections if you meet the headcount requirement, or to get in touch with your usual social contact.
