France: Supreme Court gives serious blow to the development of the notion of co-employment whereby the liability of a parent company can be engaged vis-à-vis employees in a subsidiary

In a decree rendered on July 2, the Supreme Court overturned the decision that defined the American parent company, Molex Inc., as “co-employer” of the 283 employees laid off by the French subsidiary, and sends the case back to the Court of Appeal of Bordeaux. The Court believes that the decree rendered in February 2013 that recognized the employment tribunal’s competence used an interpretation of the “co-employment” link that was too broad. This decision is a serious blow to the development of this notion, reasserting a restrictive view of situations leading to this qualification.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

The decree rendered by the Court of Appeal of Toulouse on February 11, 2013 (see article No. 130097) recognized Molex Inc., the American parent company, as co-employer of the 283 employees laid off in the Villemur-sur-Tarne factory, which belongs to its French subsidiary. Therefore, it could be brought before the employment tribunal where it could be sentenced to pay layoff compensation the liquidated subsidiary was unable to pay. In the ruling rendered on July 2, the Supreme Court overrules this decree and sends the case back to the Court of Appeal of Bordeaux.

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
United States: New York State employers required to notify employees of negative information concerning them
The news. Since 8 November 2026, employers in New York State have been subject to new obligations regarding employees’ access to their personal data. They must notify employees when they...
13 November 2026
Germany: Mercedes freezes investments and puts pressure on IG Metall
The news. On 12 November 2026, Mercedes-Benz announced a halt, temporary for the time being, to all new investment at its German sites. In an interview published on the group’s intranet...
Mexico: Senate examines legislation on the right to disconnect
The news. In Mexico, the Senate is examining legislation enshrining the right to disconnect. The text, approved by the Chamber of Deputies on 3 March 2026 and subsequently passed unanimously by...
12 November 2026
Switzerland: Could the referendum on funding a 13th monthly pension payment mark the start of a major pension reform?
On 29 November, Swiss citizens will vote in a referendum on how to finance the 13th monthly payment for pensioners (13th OASI pension), a benefit approved in 2024 that will be paid out from...
12 November 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
France: following the post-Covid boom, large companies scale back on remote working
In the post-pandemic context, large French groups multiplied generous remote working agreements before reversing the trend from 2024 onwards. What is the extent of this phenomenon? mind RH...
2
France: Iliad structures its skills management around AI
The news. On 9 April, Iliad (11,600 employees in France), the parent company of telecoms operator Free, concluded an agreement on jobs and career path management with its representative trade...
3
France: how CDC Habitat aims to better promote the expertise of its employees
The housing division of the French public group Caisse des Dépôts et Consignations, CDC Habitat (10,800 employees), established new measures on skills in July. They are set out in two agreements...
4
France: La Poste strengthens regional management of jobs and skills
La Poste’s 2026-2028 agreement on the management of jobs, professional pathways and gender diversity in occupations puts the emphasis on supporting mobility and career changes, relying on a...
5
Germany: a negotiation timetable and the prospect of industrial action at Volkswagen
The news. On 23 October, the German carmaker Volkswagen and the trade union IG Metall announced the opening of negotiations on wages, the new cost-cutting programme and job cuts. They will take...
6
Germany: Schaeffler cuts 3,460 jobs and requests temporary wage “solidarity contribution”
The news. On 3 November 2026, German automotive supplier Schaeffler announced a new “earnings improvement programme”, entailing the net reduction of 3,460 jobs in Europe by 2028 (2,660...