Employment law
Economic dismissal in Mali: grounds, alternatives and procedure
Since its main customer, a cement plant, halved its orders, line 2 of the factory runs only two days a week. Pallets of cardboard pile up in the warehouse and management is considering cutting eight jobs. But in Mali, a poorly prepared economic dismissal can cost more than the wages it was meant to save.
Let us follow Baobab Cartons SARL, a 58-employee packaging manufacturer based in Bamako, which has three staff delegates. The company and employee names are fictitious and are used for illustration only.
1. What exactly are we talking about?
Dismissal on economic grounds is an individual or collective dismissal decided for a reason that has nothing to do with the worker as a person (Labour Code, article L.46). The employee has done nothing wrong: it is the job that is at stake.
Three conditions must be met. All of them are met at Baobab Cartons.
| Condition | What article L.46 requires | At Baobab Cartons |
|---|---|---|
| A reason unrelated to the person | Reason not inherent to the worker as a person | The eight line 2 operators do their work properly |
| An effect on the job | Job abolished or transformed, or substantial change to the contract | Eight line 2 jobs are abolished |
| A specific cause | Economic difficulties or technological change | Main customer’s orders halved |
A change is substantial when it affects a term without which the worker would not have signed, such as salary, working conditions, place of work or job (article L.58). Technological change means the arrival of a machine or process that abolishes or transforms jobs.
An economic dismissal abolishes a job. It never punishes a person.
The most common mistake
Many articles add “company reorganisation” and “cessation of business” to the list of causes, and require a “real and serious cause”. These expressions come from the French Labour Code. The Malian text recognises only two causes: economic difficulties and technological change. A reorganisation must therefore be linked to one of them.
As for cessation of business, even in the event of bankruptcy or liquidation, it does not exempt the employer from the dismissal rules: informing the labour inspector, notice and severance pay (article L.57).
2. The grounds: proving the link between the difficulties and the abolished job
In the event of a dispute, the burden of proving the economic grounds and compliance with the order of dismissals lies with the employer (Labour Code, article L.48, point 6). Showing that the company is struggling is not enough.
You must establish a cause-and-effect link: it is because orders fell that the line 2 jobs are disappearing. Article L.46 requires it: the abolition of the job must “result from” economic difficulties or technological change.
This link must appear from the very first letter to the labour inspector. Any employer considering a dismissal must inform the inspector by registered letter, stating the reason; the inspector has fifteen days to give an opinion (article L.40).
Documents that convince
- Financial statements for the last two financial years.
- Monthly record of the main customer’s orders.
- Line 2 utilisation rate, week by week.
- In the case of technological change, the purchase order and technical sheet for the new machine.
What poorly established grounds cost
A dismissal without a legitimate reason, or based on inaccurate grounds, is wrongful. The judge then awards damages, that is, a sum intended to compensate for the harm, set in particular according to the employee’s length of service and age (article L.51). They come on top of notice and severance pay.
What you need to do
- Build a file with figures linking the drop in activity to each abolished job.
- Write the letter to the labour inspector setting out this link, with supporting figures.
3. Before dismissing: try first to save jobs
The Code does not let you dismiss straight away. You must first consult the staff delegates and look with them for every solution that would keep jobs (Labour Code, article L.47). The rule protects employment: dismissal must remain the last resort.
Staff delegates are the representatives elected by employees in every establishment with more than ten workers (article L.265). To learn more about their role, see our article Staff representative.
The solutions provided for by the Code
| Solution | What it involves | Point to watch |
|---|---|---|
| Reduced working hours | Fewer hours for all or part of the staff | If pay drops, the change is substantial and the employee may refuse it (article L.58) |
| Rotating work | Teams alternate on working days | To be organised with the delegates |
| Part-time work | Hours at least one fifth below the legal working time | Opinion of the delegates and notice to the labour inspector (article L.133) |
| Economic lay-off | Contract suspended, without pay | Three months maximum (article L.35) |
| Redeployment of staff | Transfer to another job or site | The employee may refuse if the job or place of work changes (article L.58) |
| Restructuring of bonuses and benefits | Negotiated reduction of certain pay items | Signed memorandum of agreement sent to the inspector |
Economic lay-off: three months, no more
An economic lay-off suspends the contract when the employer can no longer keep employees working normally, because of a shortage of work with an economic cause. It differs from a technical lay-off, which follows an incident: equipment breakdown, power cut, disaster, bad weather (article L.35).
Before deciding on it, you must obtain the opinion of the staff delegates or the union committee and inform the Regional Labour Director in advance. The suspension may not exceed three months. It may be renewed only in the event of a serious health crisis, up to six months in total (article L.35, as amended by law no. 2022-005 of 20 May 2022).
At the end of the period, or if the employee refuses the proposed conditions, any termination of the contract is attributable to the employer. During the suspension, you may not hire new workers, except for sectors not affected.
The same sentence in article L.35 also covers overtime by the remaining staff. Its wording is ambiguous, but the safest reading is not to use overtime, except in sectors not affected. The idea: not to make some employees work more while others are deprived of work and pay.
The most common mistake
It is often said that the employer must have exhausted “all training and adaptation efforts” or set up a “job protection plan”. These obligations belong to French law. In Mali, the obligation is to consult the delegates and look for solutions with them (article L.47).
If an agreement is reached, a memorandum of agreement setting out the measures and their duration is signed and sent to the labour inspector. If there is disagreement, the minutes of the meeting, that is, its written record, signed by both parties, are sent to the inspector immediately. The inspector then has fifteen days to offer mediation, known as “good offices” (article L.47).
Consult first, dismiss afterwards. The Code does not accept the reverse order.
What you need to do
- Meet the staff delegates as soon as difficulties appear, before drawing up any list of names.
- Examine each solution in article L.47 and record the answer in signed minutes.
- Send the labour inspector the memorandum of agreement or the minutes of disagreement.
4. Who leaves? The order of dismissals
Baobab Cartons cannot freely choose the employees concerned. The order of dismissals is the ranking that decides who leaves first. It rests on three basic criteria: voluntary departures, professional aptitude and family responsibilities (article L.48, point 1). Other criteria may be agreed with the union committee or, failing that, with the staff delegates.
Volunteers first
The employer must first give priority to voluntary departures. If the number of volunteers matches the number of jobs to be cut, the other two criteria can no longer be used.
Fifteen days before the dismissal, you must consult the union committee or, failing that, the staff delegates on the list of volunteers. This list and their comments are sent to the labour inspector before any departure. Volunteers receive the same rights as other dismissed employees, including the special allowance (order no. 96-1566 of 7 October 1996, article A.48.1, as amended by order no. 2024-4363 of 27 December 2024).
Then aptitude, and for equal aptitude, length of service
If there are not enough volunteers, employees whose professional aptitude is lower in relation to the jobs kept are placed on the list. For equal aptitude, the longest-serving employees stay. To take family responsibilities into account, length of service is increased by one year if the employee is married and by one year per dependent child (article A.48.1).
Example. At Baobab Cartons, two operators have volunteered. Six jobs remain to be cut. Moussa and Fanta have the same professional aptitude, and only one of them can stay.
Moussa: 6 years of service + 1 year (married) + 3 years (three dependent children) = 10 years
Fanta: 9 years of service + 0 (single, no dependent children) = 9 years
Result: Moussa stays, Fanta is placed on the list.
The most common mistake
Some articles cite “social charges” as a criterion, or put length of service on the same footing as aptitude. The Code speaks of family responsibilities, and length of service only decides between employees of equal aptitude. Another frequent oversight: ignoring voluntary departures, the first criterion since law no. 2017-021 of 12 June 2017.
First those who want to leave. Then the least suited. For equal aptitude, the longest-serving stay.
What you need to do
- Call for voluntary departures and consult the representatives on the list fifteen days before the dismissal.
- Assess professional aptitude using written criteria that are the same for everyone.
- Calculate the adjusted length of service of each employee concerned and keep the calculation.
5. The procedure, step by step
Once the order is set, the procedure follows precise steps. Malian law provides for neither a “preliminary interview” nor a “job protection plan”: these often-cited notions come from French law.
- Send the staff delegates, or the union committee, a written list of the employees you plan to dismiss, stating the criteria used (article L.48, point 2).
- Call them to a meeting within eight days to gather their suggestions, recorded in minutes signed by both parties (article L.48, point 2; order no. 96-1566, article A.48.2).
- Immediately send the list and the minutes to the labour inspector, whatever the number of employees concerned. The inspector has fifteen days to give an opinion on whether the consultation and the order of dismissals were proper (article L.48, point 4; article A.48.2).
- Send each employee a letter stating the economic grounds, the criteria used and the two-year re-hiring priority (article A.48.2).
- Give notice in writing (article L.41), then pay the sums due and hand over the certificate of employment (article L.61).
If the inspector finds irregularities, you must reply to the inspector’s comments and send the delegates a copy of the correspondence (article A.48.2).
Protected employees
To dismiss a staff delegate, full or alternate, you must obtain the labour inspector’s prior authorisation (Labour Code, article L.277). Silence for fifteen days counts as authorisation, unless the inspector informs you that an expert assessment is needed: the deadline then becomes thirty days.
The same protection covers candidates in delegate elections, former delegates for six months after their term, union delegates (article L.263) and staff representatives on the health and safety committee (article L.281). A dismissal made without authorisation is null and void: the employee is reinstated.
What a botched procedure costs
Failure to follow the procedures and formalities entitles the employee to the compensation under article L.52, which can reach one month’s gross salary (order no. 96-1566, article A.48.3).
Breach of the rules in article L.48 is also punishable by a fine of 50,000 to 200,000 XOF (article L.318), incurred as many times as there are offences (article L.335). The labour inspector may also directly collect a fixed fine of 18,000 XOF (order no. 2024-4363, article 2).
Example. Baobab Cartons dismisses eight employees without consulting the delegates.
Maximum criminal fine: 8 × 200,000 = 1,600,000 XOF
On top of this, each employee may receive compensation of up to one month’s gross salary.
What you need to do
- Keep a written timetable: list sent, meeting within eight days, file sent to the inspector.
- Check the status of every employee on the list before sending it.
- Have each dismissal letter reviewed: grounds, criteria, re-hiring priority.
6. What you owe the dismissed employee
An employee dismissed on economic grounds is entitled to several payments. In addition to notice and any severance pay, the employee receives a tax-free special allowance equal to one month’s gross salary. The employee also has, for two years, re-hiring priority in the same category (article L.48, point 5).
Re-hiring priority means that the former employee comes before other candidates if you recruit again in the same category.
| Entitlement | Amount or duration | Legal basis |
|---|---|---|
| Notice | From 8 days to 3 months depending on category, unless a collective agreement provides otherwise | Article L.41 |
| Severance pay | 20% to 30% of average monthly pay per year of service, from one year of service | Article L.53 |
| Special allowance | One month’s gross salary, tax-free | Article L.48, point 5 |
| Re-hiring priority | Two years, in the same category | Article L.48, point 5 |
For details on how severance pay is calculated, see our article Severance pay.
Example. Awa, an operator at Baobab Cartons, has 8 years of service. Paid monthly, her gross salary and average monthly pay are 250,000 XOF. Her notice is one month (article L.41).
Notice: 250,000 × 1 = 250,000 XOF
Severance pay, years 1 to 5: 250,000 × 20% × 5 = 250,000 XOF
Severance pay, years 6 to 8: 250,000 × 25% × 3 = 187,500 XOF
Special allowance: 250,000 × 1 = 250,000 XOF
Total: 250,000 + 250,000 + 187,500 + 250,000 = 937,500 XOF
During her notice, Awa may be absent one day a week to look for a job, with no loss of pay, after informing her employer (article L.44).
After departure: two rules to remember
In the six months following the dismissal, you may not use a fixed-term contract, that is, a contract with an end date set in advance, for the abolished jobs. The only exception: a contract of three months or less, not renewable (Labour Code, article L.23).
If line 2 restarts within two years, the dismissed employees have priority for jobs in their category.
What you need to do
- Calculate notice, severance pay and the special allowance for each employee.
- Keep a list of dismissed employees to apply the re-hiring priority for two years.
- Block any fixed-term hiring for the abolished jobs for six months.
A closer look: negotiated departure, a route that sets the procedure aside
The procedures in articles L.48 and L.49 do not apply in the case of an amicable departure agreement, that is, a written agreement freely and fairly negotiated between the employer and the worker or workers. You need only inform the labour inspector of the agreement (Labour Code, article L.50).
For an employee on an open-ended contract, mutually agreed termination offers another route: an agreement signed by both parties, with compensation at least equal to statutory severance pay, a copy of which is sent to the labour inspectorate. The employee’s acceptance must not result from any pressure: if consent is flawed, the mutually agreed termination is null and void (article L.50 bis).
Key takeaways in 6 points
- Link each abolished job to economic difficulties or technological change, and keep the evidence.
- Consult the staff delegates and examine every alternative before drawing up a list.
- Set the order of dismissals: volunteers first, then aptitude, then length of service adjusted for family responsibilities.
- Send the list and the minutes to the labour inspector, whatever the number of dismissals.
- Obtain the inspector’s authorisation before dismissing a delegate or any other protected employee.
- Pay notice, severance pay and the one-month special allowance, then honour the two-year re-hiring priority.