TEMPORARY LAY-OFFS IN FRANCE AND GERMANY - FROM INSTITUTIONAL RATIONALES TO BUSINESS PRACTICES

In order to avoid complete dismissal of their employees, French and Ge rman businesses may resort to temporary lay-offs when confronted with short-term difficulties. This alternative allows them either to reduce work hours or to temporarily halt their activities without having to breach labour contracts. This article examines the rationales behind d ifferent temporary lay-off strategies (i.e. system of collective respo nsibility in France and insurance system in Germany) which have been c alled for by the industrial sector, particularly during the recent pha se of recession. A survey carried out in the two countries (including the new German Landers) sheds light on the actual negotiations and app lication of this strategy, both as a tool to help adjust to economic c ircumstances and as a means of coping with structural changes.