Important French court ruling

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French court rules on company relocation

FRANCE: 8 January 2008 The French Supreme Court has ruled that if a company relocates to another country in order to benefit from tax and other incentives, the move itself cannot be used as justification for redundancies.

This is because it does not amount to 'action necessary to protect the competitiveness of the group's business', especially if it can be established from newspaper or shareholder reports that the overall business is healthy.

For this reason, any consequent dismissals on economic(redundancy) grounds will be invalid.

Copyright: FedEE Services Ltd 2008

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