When a settlement agreement is drafted in general terms, its scope is not limited to the sole original point of contention. The employee may not claim at a later stage for indemnification of potential rights.
Sometimes, upon the termination of the contract, the employer and the employee are led to sign a settlement agreement in which the parties waive any action, whether current or future, of any nature whatsoever, related to the employment contract, its performance or its termination. In return, the employee receives a specific allowance paid by the employer. The drafting of the settlement agreement is very important because it makes it possible to very largely hinder any subsequent claim for compensation from the employee, regardless of its purpose. Thus, the French Supreme Court (Cour de Cassation) recalled this principle in a case where the employee dismissed for economic reasons claimed compensation for breaches of the obligation of redeployment or obligation to rehire. The Court rejects his request: because of very general wording of the agreement, the employee had renounced without limitation to any action resulting from the execution or termination of the contract.
History
-
When a settlement agreement is drafted in general terms, its scope is not limited to the sole original point of contention. The employee may not claim at a later stage for indemnification of potential rights.
Published on : 18/03/2019 18 March Mar 03 2019NewsNewsletter / Recent Case LawSometimes, upon the termination of the contract, the employer and the employe...
-
Recent Case Law | Macron dismissal indemnity grid is not valid, according to certain French labour courts
Published on : 21/01/2019 21 January Jan 01 2019NewsNewsletter / Recent Case LawA few French courts have considered that the Marcon dismissal indemnity grid...
-
Recent case law | Delivery messengers, couriers…employees? The Supreme Court says yes !
Published on : 09/01/2019 09 January Jan 01 2019NewsNewsletter / Recent Case LawThe French Supreme Court recently handed down a very important decision for t...
-
Successions of fixed-term contracts : be cautious of the waiting period between each contract
Published on : 04/12/2018 04 December Dec 12 2018NewsNewsletter / Recent Case LawUnder penalty of re-characterization of the fixed-term contract (CDD) as an i...
-
Recent case law | Non-Compete Clauses in Groups: A surprising decision from the Supreme Court
Published on : 19/10/2018 19 October Oct 10 2018Newsletter / Recent Case LawA recent ruling from the French supreme court has brought some clarification...
-
The principle of equality does not prevent employers from giving a 13th month bonus exclusively to executives
Published on : 15/10/2018 15 October Oct 10 2018NewsNewsletter / Recent Case LawCompany agreements may provide that special benefits are reserved for certain...