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Recent case law | Harassment, Dismissals & Pay Rules in France

Published on : 09/04/2025 09 April Apr 04 2025
Newsletter / Recent Case Law
Newsletter

When company policy becomes harassment: France's Court recognizes institutional moral harassment


For the first time, the Court of Cassation (French highest civil Court) has recognized "institutional moral harassment." Unlike traditional harassment stemming from individual managerial behavior, this form is rooted in company-wide policy decisions made at the top.

The case stemmed from the privatization of France Télécom (now Orange), involving large-scale restructuring and plans to cut 22,000 jobs. A wave of employee suicides occurred between 2007 and 2009. Former executives were indicted for allegedly creating a destabilizing environment to push employees out.

The Court ruled that knowingly implementing policies that degrade working conditions to reduce staff—either by intent or effect—can constitute institutional moral harassment if it harms employees' dignity, mental or physical health, or career prospects.

Cass. crim. Jan 21, 2025, no. 22-87.145

Dismissal and anonymized testimonies: what employers can (and can’t) do under French Law


Anonymized testimonies (those anonymized after collection, but known to the employer) can be considered in dismissal decisions, even if not supported by additional evidence. However, the judge must ensure their use is essential to exercising the right to evidence and that it does not unfairly hinder the other party’s defense.

In the case at hand, an employee was dismissed for aggressive behavior toward colleagues. A court initially rejected the evidence—anonymous testimonies collected by a bailiff—due to lack of specifics and contradiction. The Court of Cassation overturned this, emphasizing the credibility of the process and the employer’s duty to ensure workplace safety.

Cass. soc., Mar 19, 2025, no. 23-19.154

This decision strengthens the admissibility of anonymized testimonies, especially where safety and health are concerned, provided the procedure remains fair and balanced.

Variable Pay and Unilateral Clauses: What Employers Need to Know Under French Law


An employment contract may allow the employer to set variable pay objectives. However, these must be clearly defined and communicated to the employee at the beginning of the performance period.

Clauses that let the employer modify commissions or bonuses at will—without objective criteria—are invalid. For example, a clause stating that the employer can change commission scales and bonus rates based solely on company-wide commission caps is unlawful, as it shifts the business risk onto the employee.

Cass. soc., Dec 18, 2024, no. 23-12.995
 

Disciplinary Dismissal for Manager's Personal Misconduct Affecting the Workplace


The Court of Cassation upheld the disciplinary dismissal of a high-ranking employee for inappropriate conduct toward a former romantic partner in the workplace. The employee persisted in sending insistent messages despite clear refusals, invoking his executive status.
Although the actions stemmed from personal issues, they occurred in the workplace and affected the colleague’s mental health, leading the company doctor to intervene. The Court ruled that this conduct violated the employee’s contractual duty to safeguard the health and safety of others (Art. L.4122-1 of the French Labor Code), justifying the dismissal.

Cass. soc., Mar 26, 2025, no. 23-17.544

This decision reflects a broader judicial stance: personal behavior, when it spills into the workplace and affects others, can breach professional obligations and warrant disciplinary action—especially for those in leadership roles.
 
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