France: Constitutional Court annuls key provisions of the law forcing employers to look for a buyer in the event of a site closure

Yesterday, March 27, the Constitutional Court ruled that the system forcing employers to accept a serious takeover off in the event of a site closure at the risk of a sanction was contrary to the freedom to conduct business and to the right to property.  This obligation was introduced by a law adopted in February, known as the Florange act, and forces employers to seriously look for a buyer in case a profitable site closes.  Void of its substance, the obligation to look for a buyer remains but the judges' reasoning gives the government little room for maneuver to make sure this obligation is respected and sanction breaches.
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The law aiming to recapture the real economy of February introduced the obligation to look for a buyer when planning to close a site (see article No. 8205). In its constitutional review, the Council does not discredit this obligation. It even states that the lawmaker is responsible for defining rules aiming to ensure everyone’s right to employment, while allowing the greatest number of exercise this right. The Florange Act sits in this framework, but the problem is the sanction system.

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