Liability of the parent company in redundancies due to faulty interference
Even when a co-employment situation cannot be characterized, it’s still possible for the employees dismissed for economic reasons to sue the engage the parent company or the main shareholder whose decisions, taken at the expense of the subsidiary’s interests, irreparably damaged its economic health and contributed to the loss of jobs.
The French Supreme court (Cour de Cassation) has recognized the liability of the parent company because of its improper interference in the management of its subsidiary. In the case at hand, the Court of Cassation approved the conviction of a US investment fund, majority shareholder, sentenced to compensate employees of a subsidiary for the loss of their employment, as their company was directly driven to bankruptcy by shareholder decisions aimed at favoring other group companies in its sole and exclusive interest.
History
-
The signing of a second mutally agreed termination (rupture conventionnelle) after refusal by the authorities requires a new cooling-off period
Published on : 21/08/2018 21 August Aug 08 2018NewsIf, following a labour administration’s refusal to approve a mutually agreed...
-
New measures to prevent sexual harassment
Published on : 21/08/2018 21 August Aug 08 2018NewsA law passed on August 1, 2018 requires companies with at least 250 employe...
-
Impending change of legislation | Upcoming reform on headcount threshholds : passing a threashhold will only have consequences after five years
Published on : 01/08/2018 01 August Aug 08 2018NewsA bill to be debated in Parliament in the fall plans to reform the impact of...
-
Latest case law | Company groups : the tort responsibility of the parent company can be engaged
Published on : 31/07/2018 31 July Jul 07 2018NewsEven if a situation of co-employment can not be characterized, the tort of th...
-
Looking forward | Loi Pacte: making French business great again
Published on : 10/07/2018 10 July Jul 07 2018NewsThe Macron government speeds ahead with its reforms and bills to help favour...
-
Recent case law | Supreme Court to workers: your commute isn’t work
Published on : 10/07/2018 10 July Jul 07 2018NewsIn 2015, the Court of Justice of the European Union considered that in the ab...
-
New Legislation | In depth look: France tackles inscribing GDPR
Published on : 10/07/2018 10 July Jul 07 2018NewsThe new law adapts the previous text of 6 January 1978 relating to data, file...
-
New Legislation | In brief: France aims for gender equality in the work place
Published on : 10/07/2018 10 July Jul 07 2018NewsAfter consulting the social partners on issues of equal pay and gender violen...
-
Do’s & Don’ts | This month: Reducing headcounts: the RCC guidebook
Published on : 10/07/2018 10 July Jul 07 2018NewsNewsletter / Do’s and Dont’sThe Macron labor law reform created a new way to implement downsizing on a vo...
-
Liability of the parent company in redundancies due to faulty interference
Published on : 25/06/2018 25 June Jun 06 2018NewsEven when a co-employment situation cannot be characterized, it’s still possi...