France: Dismissal Letters Can Only Be Signed by a Company Employee or Officer

The site manager of company A wants to send a sales manager a dismissal letter. Both the site manager and the sales manager work for company A. The site manager has a delegation of power which allows him to sign dismissal letters.

Unfortunately, the site manager cannot sign the dismissal letter and send it before going on a business trip. He therefore asks the HR manager of a sister company, company B, to sign it on his behalf. He feels that this is fine given that this HR manager, while officially employed by company B, is in charge of handling the payroll of company A.

The sales manager brings the matter the courts claiming that he was not validly dismissed because the HR manager was not an employee of company A.

This is confirmed by the French Supreme Court who considers that the fact that the HR manager was in charge of company A’s payroll is not sufficient to authorize her to sign a dismissal letter relating to an employee of company A.

Key Action Points for Human Resources and In-House Counsel

Ensure that you have properly identified who can sign HR documentation on behalf of the company and ensure that there is an appropriate backup in case they are unavailable.