All of French Company Law: ordinary law of companies and specific regime for different types of companies

Company Law (en cours)

The legal autonomy of group companies is also evident with respect to the various clauses and agreements that may affect the employment contract.
1) Non-compete clause
The non-compete clause contracted between an employee and the company employing them concerns only that company and cannot benefit other companies in the group . Indeed, an employee who leaves one company to join another engaged in  …

Conventions and legal autonomy

The legal autonomy of group companies is also evident with respect to the various clauses and agreements that may affect the employment contract.

The non-compete clause contracted between an employee and the company employing them concerns only that company and cannot benefit other companies in the group . Indeed, an employee who leaves one company to join another engaged in a distinct activity cannot be reproached for the fact that this activity is similar to that in which another company in the group is engaged. It should be noted, however, that the non-compete clause does not apply in the situation where an employee leaves one company for another within the same group, as long as the two companies are not in actual competition .

2) Application of collective agreements within the group

In the event of multiple applicable collective agreements within a group, only the one corresponding to the activities carried out by the company is enforceable against it . The fact that a group engages in diverse activities does not affect the autonomy of the companies that comprise it and that carry out a specific and separable activity from those of the group. Therefore, the personnel of the member companies of the group remain subject to the collective agreement that is specific to them . Similarly, an employee is subject to the collective agreement governing relations with their employer, in the absence of the latter's intention to maintain the benefit of more advantageous provisions of a collective agreement applicable to another company that was closely linked to the former and within which they previously worked .

Cass. soc., 22 May 1995, LawLex202200007212JBJ; 17 December 1997, LawLex202200007213JBJ.

Cass. soc., 3 June 1997, LawLex202200007215JBJ; 29 January 2014, LawLex202200007263JBJ, considering that a non-compete clause whose effects are neutralized within a group must be implemented from the day the employment contract with the second employer is terminated, so that the person concerned, bound to respect the commitment he has made until the initially agreed term, can receive the financial compensation.

Cass. soc., 30 January 1991, LawLex202200007272JBJ.

Cass. soc., 20 March 1980, LawLex202200007270JBJ.

Cass. soc., 17 February 1982, LawLex202200007456JBJ.

Company Law (en cours)

275. Conventions and legal autonomy

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

275. Conventions and legal autonomy

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise