France: Employers May Request Reimbursement of Financial Compensation Paid if a Restrictive Covenant is Considered Null and Void

An employee’s contract provided for a restrictive covenant prohibiting him from working for a competitor anywhere in France for one year, subject to receiving a certain monthly compensation. The employee resigned to join a competitor. The employer went to court to obtain the reimbursement of the compensation paid during the months he was not aware that the employee had joined a competitor. The employee claimed that the restrictive covenant was null and void because it is overly broad and that the employer cannot make any claims based on a document, which was null and void. On 22 May 2024, the Court ruled in favour of the employer.

Key Action Points for Human Resources and In-House Counsel

Despite the fact that it may be possible to obtain reimbursement for compensation paid, it is always preferable to ensure that the validity of your restrictive covenants cannot be challenged. Regularly check that they are properly drafted and not overly broad.