In a decision handed down on 28 February 2018, the Labor Division of France’s highest appeals court, the Chambre sociale de la Cour de Cassation, quashed without referral a February 2016 decision by the Versailles Court of Appeal (c.f. article No. 9486) that wholly condemned a French company and its holding company to recalculate and pay profit-sharing amounts due over a period of eight years to French employees who had not received this portion of their remuneration because of a loan taken out by the company with the holding company.
The Chamber sociale reaffirmed the jurisprudence that determines that the amount of net profit and total shareholders equity, which is to be used to calculate the profit-sharing reserve amount (pool), being determined by a certification from either the Tax Inspector or the Statutory Auditor, the amounts that are set in this manner ‘cannot be called into question if disputes or litigation arises over the company’s profit-sharing.’
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