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ARTICLE · 29 DECEMBER 2020

Co-Employment Within Corporate Groups: A New Definition For An Exceptional Situation

In a ruling issued on November 25, 2020, the Cour de Cassation (French Supreme Court) reaffirmed the exceptional nature of co-employment by giving a new definition of its constituent elements.

FranceReal Estate and Construction

In a ruling issued on November 25, 20201, the Cour de Cassation (French Supreme Court) reaffirmed the exceptional nature of co-employment by giving a new definition of its constituent elements.

This more restrictive definition, which reinforces the exceptional nature of the situation of co-employment, should have a deterrent effect on employees wishing to rely on this concept in court.

Co-employment within corporate groups is a concept developed by French courts, in particular in the context of disputes with a view to having a company belonging to a group (the parent company) be held jointly and severally liable for the financial consequences of the dismissals on economic grounds (redundancies) implemented by its subsidiary.

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