After two years of debate, the Economic Simplification Bill (SVE) was finally passed by the National Assembly and the Senate on 14 and 15 April 2026.
The aim of this text is to meet the expectations of business leaders and stakeholders in the economic sector regarding competitiveness, investment and economic attractiveness. In particular, it seeks to reduce the administrative burdens and red tape faced by businesses, facilitate economic activities, rebalance the relationship between the government and businesses, and streamline standards within the economic sector.
One of the key measures in this legislation concerns the reform of the « Hamon » Act of 31 July 2014 on the social and solidarity economy (SSE), and more specifically the provision requiring employers to give employees advance notice in the event of a business transfer.
What is the Hamon Act ?
Introduced by Benoît Hamon, Minister of State for the Social and Solidarity Economy, this bill aimed to establish a framework for and promote social and solidarity economy practices by providing them with a legal basis, as well as to encourage the growth and takeover of companies by their employees.
Having been amended for the first time by the Macron Act and by the decrees of 28 December 2015 and 4 January 2016, which clarify the scope of the Act and relax its provisions, the ESS Act thus introduces two obligations for all companies with fewer than 250 employees:
- The requirement to inform employees two months prior to any transfer (excluding inheritance, gifts and intra-group transfers), to enable them to make a bid to purchase the business
- The introduction of a requirement to provide employees with information every three years regarding the possibilities for them to take over the company that employs them. Article 18 of this Act stipulates that this information must cover, “in particular, the legal conditions for an employee-led takeover of a company, its advantages and challenges, as well as the support schemes available to them.”
In the event of non-compliance with these two measures, a fine of up to 2% of the sale price could be imposed (the provision rendering the sale void having been repealed by the Macron Act).
What’s changing in 2026 regarding the transfer of small and medium-sized enterprises
A source of procedural complexity and tension regarding confidentiality, the comprehensive overhaul of the prior notification mechanism is based on three key areas :
- The refocusing of the scheme on smaller organisations by removing the requirement for direct consultation in companies with more than 50 employees
- A relaxation of the direct disclosure requirement by reducing the disclosure deadline to one month prior to the transaction (compared with two months previously)
- The reduction in the maximum fine for non-compliance, now capped at 0.5% of the sale price (down from 2% previously)
For the executives involved, this represents a tangible simplification : less exposure to legal proceedings, tighter deadlines and greater confidentiality in the run-up to closing.
Key considerations for managers
However, there are two points to bear in mind :
- Political groups are considering referring the matter to the Constitutional Council to challenge the inclusion and gradual addition of certain measures that deviate from the original draft during the legislative process. The bill is therefore likely to be subject to review by the Council, which could result in its partial or complete rejection.
- In the case of companies with at least 50 employees that have a social and economic committee (CSE), consultation with the committee on the proposed sale remains mandatory. The committee has one month to issue an advisory opinion
In conclusion
The reform of the Hamon Act through the Economic Simplification Act provides greater flexibility for SMEs affected by its provisions, whilst sparing larger companies from administrative burdens. It also refocuses the disclosure requirements to a scale at which employee buyouts are economically viable.
The sale of a business is a strategic transaction that requires careful preparation in advance. At NG, we offer tailored support to business owners at every stage of the handover process, incorporating risk analysis, valuation optimisation, and ensuring the legal and financial security of the transaction.