Procédure Renault
| Company type | Labour regulation |
|---|---|
| Industry | Labour law |
| Founded | February 13, 1998 |
| Headquarters | Belgium |
Area served | Belgium |
| Website | emploi |
"Procédure Renault" designates a Belgian labour regulation enacted on 13 February 1998 that addresses collective redundancies. It requires employers to engage in a consultation phase prior to implementing large-scale layoffs and outlines the compensation due upon termination. The designation stems from the contentious 1997 mass dismissal at Renault's Vilvoorde factory. Officially published in the Belgian official journal on 19 February 1998, this legislation is frequently referred to as the "loi Renault" (Renault law), "Procédure Renault", or "Plan Renault".
History
In 1997, Renault declared its intention to shut down the Vilvoorde plant, leading to the elimination of 3,097 positions without prior employee consultation. This decision caused Renault’s stock price to increase by 20%, yet it also provoked widespread labour disputes, including strikes throughout Belgium and Europe in support of the dismissed workforce.
In response to the controversy surrounding the closure, the Belgian government commissioned the Conseil National du Travail/Nationale Arbeidsraad (CNT/NAR) to examine existing consultation protocols. Following CNT’s advice, the loi Renault was enacted on 13 February 1998, strengthening earlier collective redundancy regulations from 1975–76.
Scope of the law
The legislation applies to private employers who intend to carry out collective dismissals characterized as follows:
- For companies employing between 20 and fewer than 100 workers, dismissing a minimum of 10 employees
- For organisations with 100 to fewer than 300 employees, terminating at least 10% of their workforce
- For enterprises exceeding 300 employees, laying off no fewer than 30 staff members
The term “workers” pertains to individuals employed under Belgian labour contracts.
Employers are obligated to notify and consult with employees regarding the motives for redundancies and the criteria used for selecting affected personnel, as well as to address all employee questions. The law governs mass layoffs but does not cover insolvencies declared by judicial authorities.
Recent cases
Since its introduction, Procédure Renault has become a common phrase in Belgian media describing employer-employee consultations preceding significant redundancies. Prominent examples include: cessation of primary steel production at ArcelorMittal Liège (2013); shutdown of coke oven and blast furnace operations at Carsid (Marchienne-au-Pont, 2012); workforce reductions at the former Duferco La Louvière steel facility (2012); job cuts at aerospace manufacturer SONACA (2009); layoffs at Ford’s Genk plant (2012); and employment reductions at Caterpillar Inc’s site in Gosselies (2012).
Originally focusing on major manufacturing sites, the scope of Procédure Renault has expanded to encompass other industries, such as technology firm TomTom in 2022. The Federal Public Service Employment publishes quarterly data tracking the application of the "Renault Law".
See also
- Collective Redundancies Directive 1998
- Redundancy in United Kingdom law and Compromise agreement
- Layoff