I lose a client: Can I dismiss for economic reasons?

The loss of a customer does not necessarily mean real and serious economic motive.
We must demonstrate the impact of this loss on the economic equilibrium of the company.

Questions to ask yourself

Can I demonstrate the existence of lasting economic difficulties, at the level of the company or group companies based in France and having the same activity?”
→ If I demonstrate a significant drop in an economic indicator (orders, turnover, etc.) over a period of between 1 and 4 consecutive quarters depending on the workforce of the company, I can lay off for economic reasons.

→ If so, I can invoke the need to reorganize the business and lay off for economic reasons, especially when the business of the company depends on contracts awarded by other companies.

Employees affected

Please note, the dismissal will not necessarily relate to employees working for the lost client.
It is mandatory to apply specific criteria (family responsibilities, seniority, etc.) to all employees belonging to the same professional category.

The order criteria must be applied to all employees of the company, or of each employment area in which a company establishment is located. A more restricted perimeter can be negotiated by agreement.

It is easier to point out proven economic difficulties than a reorganization necessary to safeguard the competitiveness of the company, which is based on foresight.

Companies operating on the basis of markets, which achieve all of their turnover through the provision of services entrusted by contractors, will be able more easily to highlight the fact that their competitiveness depends on a number of sufficient markets to enable them to occupy their entire workforce.

However, the judge will be more attentive and demanding on the anticipatory measures implemented before the dismissal decision is taken (in particular in the context of forward planning of employment and skills).