Tripartite Agreement Employment

Earlier this month, the Supreme Court considered the legal characterization of tripartite employment contracts, examined who the employer was really in these agreements, and recognized the impact that issues arise on many employment plans. The new system of temporary labour allocation will not affect the state of the law – or the current differences of interpretation – on the current system of division of labour. Once these agreements are concluded, all parties agree that the initial employment contract A) will be transferred to the new employer and B) the contractual relationship with that first employer will be terminated without compensation or specific procedure. The Tribunal also confirmed that the employer should consider whether there are opportunities for redeployment of the worker (once the worker has not been able to return to the site) and take active steps to explore potential opportunities. In the absence of such options, the Court held that the employer had the right to terminate the employment relationship. Tripartite agreements are generally a little more complicated when there is an intragroup transfer of employment contracts. As a general rule, these measures are formalized by the tripartite agreement between the original employer, the new employer and the worker. In 2014, the Supreme Court of France ruled that the termination could only be valid by mutual agreement if the procedure described in the authorized judgment of the labour code was respected. Under this procedure, workers receive compensation at least equal to what they would have received in the event of dismissal. This alone has created a cloud of uncertainty around intragroup transfers into the country.

The court did not accept the appeal and found that Ms. Hill`s dismissal was justified. For employers dealing with tripartite contracts, the following points are relevant: the new system of temporary allocation of work is put in place as soon as possible and applies until 31 December 2020, with the possibility of extending until 2021 the work-sharing agreements already signed for a maximum of four months.