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.
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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 th

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