France: the automaker PSA becomes the first company to harness new permission to mutually terminate contracts through collective agreement

A majority of unions ( five out of six) at the French car manufacturer signed today (January 19) the agreements to make use of two new measures introduced as part of France’s new labour reform – allowing for collective mutual contract terminations and for staff to take ‘mobility leave’. The framework for collective mutual terminations (see our article n°10511) seeks to provide security for voluntary departures that take place outside of periods of economic difficulty. As in the voluntary departure plan contained in the 2016 agreement, which is being amended, the employees concerned will be offered external professional mobility, with a level of safeguarding, through measures put in place by the company.
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Collective mutual terminations. To be eligible for such a termination of their employment contract, the employees must be in roles which, as defined by the group’s observatory of professions, are ‘susceptible’ (decreasing need for the employee) or ‘in a situation of inadequacy’ (support is necessary to make the employee more compatible, given the function performed and role held). Those in professions defined by the observatory as corresponding to existing and future demands are also eligible. The PSA group is planning around 1,300 voluntary departures, in addition to 900 departures under a so-called ‘congés seniors’ programme, whereby individuals can go on permanent leave ahead of reaching the age of retirement.

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