The stakes were high as the Basel-Mulhouse EuroAirport is considered as the second largest employer in the region after Peugeot. Although they are located in France, businesses operating in the Swiss customs area have been referring to Swiss labor law since they opened. After 60 years of undisputed practice, an action challenging an economic layoff caught a French judge’s attention. Thus, in a decree rendered on September 29, 2010, the French Supreme Court ruled that, based on the Rome Convention on the law applicable to contractual obligations, that, in this case, the labor contracts were not closely linked with Switzerland and that, as a consequence, French mandatory rules (by virtue of that same Convention, the French Labor Code would have applied if the labor contracts didn’t refer to Swiss law) applied. Considering that, under French law, the economic layoffs were unfair, the Court sentenced the company to different compensation payments. After the ruling came, some businesses froze their plans while others threatened to relocate their activities.
tions, that, in this case, the labor contracts were not closely linked with Switzerland and that, as a consequence, French mandatory rules (by virtue of that same Convention, the French Labor Code would have applied if the labor contracts didn’t refer to Swiss law) applied. Considering that, under French law, the economic layoffs were unfair, the Court sentenced the company to different compensation payments. After the ruling came, some businesses froze their plans while others threatened to
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