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Co-employer in French law

Co-employer in French law. Practise Group Employment law THE HAGUE 20th October 2012. PRACTICE AREAS. French company law International trade law Sales representative law Employment law Product liability. Collection of claims Insolvency law Transport law Maritime law.

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Co-employer in French law

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  1. Co-employer in French law Practise Group Employment law THE HAGUE 20th October 2012

  2. PRACTICE AREAS French company law International trade law Sales representative law Employment law Product liability Collection of claims Insolvency law Transport law Maritime law

  3. A common definition of the employer The Co-employer: actually no new concept in French law Employer – Co-employer

  4. Change with the decision Jungheinrich (1) • No more use for the old definition of the co-employer • New definition: Confusion of interests, activities and direction. • No mention of the term subordination (“lien de subordination”) to establish an employment relationship.

  5. Change with the decision Jungheinrich (2) • Some facts from which this triple confusion can be derived: • Takeover of 80 % of the production and fixing the prices of the subsidiary's products. • Nearly all shares of the subsidiary hold by the parent undertaking • Determination of the strategic orientation by the parent undertaking • Human resources management of some subsidiaries by the mother • In fact administrative and operative direction by the parent undertaking

  6. Confirmation (!) and Clarification (?) • Confirmation by some decisions in 2011 and 2012 • Special importance of the field “human resources” • Financing of the social plan • Obligation of redeployment

  7. Consequence • Obligations for the co-employer equivalent to the employer’s duties. • Even if no direct legal relationship or connection between the parent company and the employees of the subsidiary.

  8. Problems • High risk for international companies • Inexact and unclear terminologies • No end or limits?

  9. Recommendations • Try to preserve the subsidiary’s independence and autonomy. • The higher the interference, the higher the risk.

  10. Explanations, Criticism (1) • No application of article 1165 of the French Civil Code? • No principle of autonomy of legal persons?

  11. Explanations, Criticism (2) • Insolvency of the subsidiary – no way out any more.

  12. Outlook • Extending to other fields than termination of employment contracts?

  13. French avocats and German Rechtsanwälte Avocats and Rechtsanwälte, more than 20 years experience Qualified translator for legal and financial documents

  14. Judith ADAM-CAUMEIL Avocat à la Cour de Paris, Rechtsanwältin2 avenue Trudaine · 75009 Paris Tel.: (0033) 1 42 81 41 51 www.adam-caumeil.com

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