Undertaking Agreement In French
If the transfer of the company is the result of an agreement between the assignor and the purchaser, it applies in solidarity to all arrears of payment to employees. As a result, the purchaser may be held responsible for a debt to a transferred worker in the course of pre-transfer work. The typical case scenario in which french transmission rules apply is the situation in which a company`s assets are sold to a new owner (sale of commercial funds), which requires the existence of a sales contract between the seller and the buyer. However, such a cessation of collective agreements triggers a specific and rather complex procedure that should encourage the new employer to negotiate new collective rules imposed on delegated workers, rather than simply imposing its own rules instead of the previous rules. If the conditions for the transfer of a company are met, the workers are transferred to the new employer, even if it is a state entity. Following the transfer, all contractual conditions in effect immediately prior to the transfer remain in effect after the transfer. On the other hand, tariff conditions (for example. B rules arising from a collective agreement) receive reverse legal treatment: as a general rule, the tariff conditions in force within the company immediately before the transfer are terminated after the transfer. However, French legislation provides that they remain in force during a transitional period during which the new employer is invited to enter into an agreement with the workers` unions on new commercial conditions, otherwise the new employer will remain bound by some of the previous tariff conditions in relation to the transferred employees. In addition, successive employers can enter into an agreement to allocate redundancy costs.
The Supreme Court upheld an agreement that the ceding company agreed to reimburse the purchaser for compensation in lieu of severance and severance pay for the workers he envisaged after the transfer. (Employment Department of the Supreme Court, October 30, 1987). A business may be transferred to a public company A company that is next to the main business may, according to the case law, “pursue its own purpose”. The outsourcing of support services can therefore lead to a transfer of business issues when a specific team is set up for the support activity in question, its own employees being exclusively dedicated to this activity and to its own superiors, equipment and objectives. For example, the Supreme Court of France found that the outsourcing of IT telephone assistance to a service provider constituted a transfer of the company, since “this department had specific resources in terms of human resources and equipment and tended to have its own objectives and results” (Empl). Supreme Court, January 23, 2002, #02-17.642). This rule has been extended by French jurisprudence to similar factual schemes of the transmission of companies that are not expressly provided for by the labour code. However, the transfer of workers is a problem when the new employer has to propose a public employment contract (“a public employment contract”), which generally involves radical changes to previous contractual conditions that the worker cannot refuse.