Redundancy Protection Plan: Definition, Implementation, and Benefits

When the economic and financial health of a company is at risk, it may sometimes be necessary to proceed with redundancies. These may occur to reduce salary and overhead costs, or because certain positions are no longer viable given the company’s situation.

To protect employees, various measures can (or must) be implemented, such as:

• Professional outplacement programmes
• Retraining or conversion schemes
• Redeployment opportunities
• Or a Redundancy Protection Plan.

Who does it concern? What does it consist of? How does it support employees in practice? Here are the answers to these key questions.

Redundancy Protection Plan: What Is It?

General definition

A Redundancy Protection Plan is a set of measures designed to avoid as many redundancies as possible and to provide redeployment solutions for employees who are laid off.

It is a mandatory procedure for any company with 50 or more employees, when it plans to make at least 10 redundancies within a 30-day period.

The plan may be negotiated with trade unions (collective agreement) or drawn up unilaterally by the employer. In the latter case, the employer must submit the plan for consultation with the company’s Social and Economic Committee (CSE), which may request the support of a chartered accountant.

Content and Obligations

To be validated by the relevant authorities, a Redundancy Protection Plan must follow strict rules and include a set of mandatory measures.

These measures fall into two categories:

1. Avoiding or reducing the number of redundancies.
2. Supporting redeployment for employees who are laid off.

Examples of measures include:

• Internal redeployment to equivalent positions.
• Adjustments to working time and organization.
• Support for business creation or takeover.
• Training programs and Recognition of Prior Learning (VAE).
• Conditions for redeployment leave and the CSP.

Additional optional measures may also be added, such as:

• Financial incentives for voluntary departures.
• Career assessments to help employees evaluate their professional situation and market value.
• Specific support for employees with disabilities and for pregnant women affected by the redundancies.

How to Implement a Redundancy Protection Plan

Whether the company is legally required to introduce a plan or chooses to do so voluntarily, the steps are the same.

1. Analyze the situation and identify needs

The employer must first analyze in depth the economic, technological, or organizational difficulties justifying redundancies.

Then, assess the impact on the company and staff:

• Which roles are affected?
• By what timeframe?
• How many redundancies are planned?

2. Consult employee representatives and design the measures

Employee consultation is an essential step. This may involve trade unions, works councils, or other representative bodies, depending on local laws.

The aim is to identify alternatives to redundancy and to discuss measures that best support employees.

3. Submit the plan to labour authorities (where applicable)

In some jurisdictions, redundancy plans must be reviewed and approved by labour authorities before implementation. Authorities may request changes to strengthen employee protection or ensure fairness.

4. Implement and monitor the plan

Once approved, the company must roll out the measures (redeployment, training, financial assistance, etc.) and ensure they are properly followed. In many countries, a final report must confirm that commitments have been respected.

Why a Redundancy Protection Plan Matters for Mental Health

While sometimes seen as a legal burden, a well-prepared redundancy protection plan can have a profound impact on employee well-being.

Key benefits include:

• Lower stress and anxiety: Transparent communication and clear measures reduce uncertainty about income and job security.
• Preserved self-esteem: Redeployment opportunities and training prevent feelings of professional “failure.”
• Future perspectives: Employees can prepare for new roles, careers, or projects, reducing the trauma of redundancy.
• Professional development: For some, it opens opportunities such as relocation, moving into a different field, or starting a business.
• Trust and support: When designed with employees’ needs in mind, the plan builds confidence and reinforces the employer’s credibility.

In short, in what could otherwise be an anxious and conflictual process, a well-structured redundancy protection plan not only protects livelihoods but also safeguards mental health at work.

To go even further, you can complement such measures with individual support solutions for stress and mental health management—ensuring that well-being remains a pillar of your HR strategy even beyond restructuring phases.