Ethix

By law 

The content and the way to process the warning notice by the Work’s Council are described in the French Labour Code, in the economical functions of the Work’s Council chapter.

"The facts that may concern the situation of the company worrying speaking."

«When the Work’s Council knows facts that may concern the economical situation of the company worrying speaking, the Board can be contacted for further information. Either if the Work’s Council couldn’t obtain accurate information from the Board, or if the Board confirm the worrying situation, they write a report. Inside the companies with more than 1000 employees, this report is written by the Economical Committee as mentioned in L2325-23 article. This report based on the right of economical warning notice, is forwarded to the Board and to the Auditor.»
(L2323-78 article )


Assistance of a Chartered Accountant

«The Work’s Council or the Economical Committee can:
- be assisted once a bugdetary year by a Chartered Accountant as mentioned in L2325-35 article
- call the Auditor for a meeting
- be helped by 2 employees of the company regarding their skills and non-members of the Work’s Council, but without voting rights. Each of those employees has 5 hours to assist the Work’s Council or the Economical Committee, in view to make out the report mentioned in L2323-78 article. This time is paid as a labour time.»
(L2323-79 article)


Report written by the Work’s Council assisted by its Expert

«The report of the Work’s Council or the Economical Committee concludes by an advice on the interest to forward its analysis to the Administration Board or Supervisory Board, depending on the companies or to inform the shareholders or the Members of Economic Interest Groupings. Regarding to the report, the Work’s Council may decide with the majority of its present members to do a seisin or to give the information. In this case, the advice of the Chartered Accountant is included in the seisin or in the information.»
(L2323-80 article)


The seisin of the Administration Board or Supervisory Board of the company made by the Work’s Council

«When the Work’s Council has contacted the Administration Board or the Supervisory Board according to L2323-80 article, this Board study the seisin within the month. The extract of the minutes included the detailed answer to the request of information made according L2323-81 article, is sent to the Work’s Council during the month after their meeting.»
(R2323-18 article)

«In other companies without Governing Board or Executive Board, or in the Economical Interest Groupings, the managers forward the report of the Economical Committee or Work’s Council and the members of grouping to the shareholders within the 8 following days after the meeting of the Work’s Council asking for it.»
(L2323-19 article)

Our comments

1. The warning notice must be processed only advisedly by the Work’s Council.

2. The Work’s Council masters the planning.

3. The analysis of warning notice is made in 3 stages:

• Request to the company for information;
• Report written by the Work’s Council or its Economical Committee. At this stage, the Work’s Council can be assisted by a Chartered Accountant who will also make out a report concluding by its own opinion on the worrying situation;
• Seisin of the Governing Board or the Executive Board.

After each stage, the Work’s Council must decide:

• either to stop the procedure,
• or to going on.