Since the 2019 social elections, it is possible to have a staff delegation appointed at a new level, that of the economic and social entity.

Where several businesses, i.e. several different legal entities, together constitute what is known as an economic and social entity, a delegation may be set up at the level of that umbrella entity if requested by at least two delegations from within the entity.

Definition of the economic and social entity

The economic and social entity is defined in Article L.161-2 of the Labour Code as follows

“An enterprise constituting an economic and social entity is understood to be a set of entities, even with autonomous and/or distinct legal persons, and even operating under a franchise system, which present one or more elements which qualify them as not being independent and/or autonomous units, but rather having:

• a concentration of managerial powers and identical or complementary activities;
• a community of employees linked by identical, similar or complementary interests, and who have comparable social status.

Each available element which helps determine the existence of an economic and social entity is taken into account, such as:

• the existence of common or complementary structures or infrastructures; the use of a common, complementary or coordinated strategy;
• the dependence on one or more economic beneficiaries, whether these are totally or partly identical, complementary or linked to each other;
• the dependence on a joint, complementary or related management or shareholding, or the dependence on managerial, supervisory or control bodies with the same persons or the persons representing the same organizations whether wholly or in part;
• working with a community of salaried workers linked by common or complementary interests or the fact that said workers have a similar or related social status.

Several establishments operating under the same or broadly similar name, including under a franchise system, are presumed to form an economic and social entity.”

In fact, it is a kind of group of companies, legally separate entities, but forming a whole on the economic and social level.

Procedure to be followed

It is up to the staff delegations of the different companies to submit the request for setting up a delegation at the level of the economic and social entity. The request must come from at least two delegations of two different companies of the economic and social entity.

Such requests must be submitted within three months of the staff delegation elections. They must be sent to the employers in the relevant entities.

In the event of a dispute over the merits of the request by one or more employers or by one or more delegations deciding by majority, the mediation bodies provided for in Article L. 417-3 of the Labour Code may be solicited.

Mission of the delegation for an economic and social entity

The delegation at the level of the economic and social entity represents the interests of all the employees employed in any of the businesses making up that entity.

Its only mission is to exchange information between the various staff delegations from which it originates.

Composition of the delegation at the level of the economic and social entity

The staff delegation of the economic and social entity is composed of regular and alternate staff delegates from each business with a staff delegation.

The number of representatives per company depends on the number of employees in the company:

• for companies with between 15 and 100 employees: One regular representative and one alternate representative;
• for companies with between 101 and 500 employees: Two regular representatives and two alternate representatives;
• for companies with more than 500 employees: Three regular representatives and three alternate representatives.

The members of the staff delegation in the economic entity are elected by and from among the members of the staff delegations by relative majority in a secret ballot.

If, in any of the businesses in the economic and social entity, there are one or more businesses with fewer than 15 employees and without staff delegation, then the total staff of this or these businesses appoint a representative who will participate in the meetings of the umbrella entity’s staff delegation. This representative is entitled to half the training hours of regular representatives

Small enterprises with fewer than 15 employees constituting a single economic and social entity

If at least three companies, each with fewer than 15 employees, form an economic and social entity and together they have at least 15 employees, a request to establish a delegation at the level of the economic and social entity may be submitted to the Inspectorate of Labour and Mines by at least 15 employees.

The Inspectorate of Labour and Mines sets the date for these elections, which are held by relative majority. In the event of a dispute over the validity of the request by one or more employers or by one or more employees, the mediation bodies provided for in Article L. 417-3 of the Labour Code may be solicited.

The same legal provisions that apply to staff delegations also apply to the staff delegation for the economic and social entity, except for the provisions regarding information and consultation in undertakings with at least 150 employees, those relating to the right of participation in certain business decisions with at least 150 employees, as well as those relating to the equality officer and the health and safety officer.

The members of this delegation have the same rights and duties as the members of the delegation, except for the right to training, which in all cases is limited to the number of training hours granted to alternate staff delegates.