Flichy Grangé Avocats - employment law
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Latest case law | Company groups : the tort responsibility of the parent company can be engaged

Latest case law | Company groups : the tort responsibility of the parent company can be engaged

Published on : 31/07/2018
Even if a situation of co-employment can not be characterized, the tort of the parent company or the main shareholder can be engaged by the employees when the decisions of these authorities, taken at the expense of the interests of the subsidiary, have irreparably damaged its economic health and contributed to the loss of jobs. The Court of Cassation, which had already embarked on this course in 2014, recalls the principle and its limits in several judgments delivered on May 24, 2018.

The principle of co-employment, which makes it possible to trace the financial obligations of the contractual employer to the co-employer, is less and less recognized by the Court of Cassation. In a recent case, however, the High Court acknowledged that the group's largest shareholder was ordered to pay damages for its extra-contractual liability which led to the loss of employment of the employees and the liquidation of the society. Clarification provided by the Court of Cassation: the fault must result from management decisions wrongly taken by the parent company which would exploit, in its sole interest, the state of dependence of its subsidiary, compromising at the same time the capacity of the parent company. to act in accordance with his interest.

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