On 06 July the Labour Division of France’s Court of Cassation ruled that Continental AG, Continental France’s parent company, did not have co-employer status alongside its French subsidiary. The Court held that it was not because the parent company’s business policy for the whole group impacts its subsidiary’s business and employment activity (and hence the closure of a site) that a co-employment relationship can exist. However in a different case involving the company 3 Suisses, the Court did confirm a co-employer situation existed between the parent company and 3 Suisses France.
Counter to both courts of first instance (Douai Employment Tribunal (c.f. article No. 130512) and the Amiens Court of Appeal) France’s Court of Cassation ruled that Continental France’s German parent company, Continental AG was not a co-employer of the French company. At stake for employees working at Continental France was achieving recognition of the German parent as being responsible for the closure of the Clairoix factory in order to secure changes to the scope of the economic grounds being used as the basis for redundancies as well as securing parent company responsibility to financially contribute towards the redundancy compensation payments.
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