France: Important new decision in relation to the automatic transfer of employees

The French Supreme Court has recently issued an important new decision relating to the automatic transfer of employees in the case of asset transfers (the equivalent of the TUPE relations).

In this decision the Supreme Court held that the transfer of all employees of a company without a site works council would be treated as a "partial" transfer of employees where the company in question formed part of what is known as a UES (unique social and economic entity) with other companies.

The most important consequence of this decision is that prior Labour Inspector approval will therefore be required before the transfer of any elected employee representatives (who are therefore "protected" employees) of such company who are due to transfer.

Supreme Court 23 March 2017 n° 15-24.005

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Filed under Business sales/transfers, Jurisdiction: France

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