French senate rules out staff notification requirement for divestments

Introduced at the end of 2014, the loi Hamon (Hamon Act) attracted significant criticism from the business community – owners wishing to sell a business would have had to notify every employee two months prior to any transaction taking place. Although a number of caveats meant the impact for private equity would have been limited, issues surrounding confidentiality and excessive red tape were still tipped as potentially damaging to dealflow.

As the loi Macron (which incorporates the measure in question, alongside a wide range of business reforms) passes back and forth between the country's parliament and senate, the latter chamber has dealt a significant blow to the loi Hamon: the notification requirement would now only apply to scenarios where a distressed business goes under having failed to find a suitable acquirer. The measure aims to give staff an opportunity to put together an offer for the company within two months following the owner's decision to wind the business down.

The loi Macron will now be put forward to a mixed committee, tasked with drafting a version suited to both legislative chambers. The committee will gather on 28 May, after which the draft bill will go back for a vote in parliament.

Click here to read our in-depth analysis of the potential impact of the loi Hamon

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• Apax France SA