international employment law firm alliance L&E Global

France: The dismissal of the Director of a subsidiary by the director of the parent company is valid

Who holds the authority to dismiss someone in a company in France ? The French Labor Code designates the employer, ie the legal representative of the legal entity, in practice, an employee who has been delegated the power to dismiss. But caution is required; the delegation of authority to dismiss can in no case be delivered to a person outside the company. The French Court of Cassation has just ruled that the Group Chief Executive may dismiss the employee of a subsidiary without a written delegation if he supervises its activities. In so far as the managing director of the parent company controlled the activity (transmission of directives, follow-up of work meetings), he is not considered as a person removed from the dismissed employee’s employer company.