international employment law firm alliance L&E Global

France: The director of a sister-company can carry out a dismissal procedure

In theory, only the company’s legal representative or one of the company’s duly empowered employees can dismiss a person employed by such company but certain exceptions have been allowed over the years by caselaw. The French Supreme Court had judged in the past that a parent company’s HR Director could dismiss employees working within subsidiaries but not the HR Director of a sister company who did not have any responsibility for HR matters within said company.

A recent ruling by the French Supreme Court has decided that the director of a sister-company could validly carry out a dismissal procedure as such director has been sent by the parent company as an external consultant to support said company namely with regards HR matters. The company’s legal representative had given a power of attorney to the director with regards day-to-day HR and administrative matters.

Key Action Points for Human Resources and In-house Counsel

  • Check that Group employees not directly employed by the company and who may have to take decisions on its behalf have a properly drafted and documented power of attorney.