All publications by Soulier Avocats

Law No. 2016-1691 on transparency, the fight against corruption and the modernization of the economy of December 9, 2016, commonly referred to as the “Sapin II Law”, has provided France with innovative tools inter alia to detect, prevent and punish corruption and breaches of probity.

The reinforcement of the legal arsenal to better fight corruption is one of the major pillars of this Law, and the risks associated to breaches of compliance rules can prove to be a deterrent for buyers in the context of M&A transactions.

In a decision dated December 8, 2021, the Cour de Cassation (French Supreme Court) confirmed that when the mandatory provisions of French law regarding the termination of an employment contract are more favorable, they apply to employment contracts under foreign law performed in France.

Ordinance No. 2021-1658 of December 15, 2021 relating to intellectual property rights in assets generated by software developers or inventors who are neither employees nor public agents and who have been hosted by a legal entity carrying out research (the “Ordinance”) unifies French intellectual property law with respect to service inventions.

In a decision dated January 26, 2022, the Cour de Cassation (French Supreme Court) clarified that the presumption introduced by Article L. 1226-12 of the French Labor Code only applies if the redeployment position offered to an employee declared unfit for work is as comparable as possible to the position previously held by that employee, thereby imposing a duty of loyalty on the employer.

The principle under French law is that financial dealings between France and foreign countries are unrestricted.

However, some investors making certain types of investments in so-called “sensitive” business sectors must follow a prior authorization procedure with the French Minister of the Economy.

The control of foreign investments in these business sectors has been significantly reinforced in recent years, especially since the outbreak of the health crisis resulting from the emergence and spread of COVID-19.

In a ruling dated December 15, 2021, the Cour de Cassation (French Supreme Court) upheld the decision of a Court of Appeals that had ordered an employer to pay back pay for variable remuneration, the objectives of which were neither realistic nor revised every year.

Variable remuneration, whenever provided for in the employment contract, is a component of the salary that makes it possible to determine compliance with the minimum salary provided for by law or the applicable collective bargaining agreement .

The payment of this variable remuneration is in principle conditional upon the achievement of annual objectives by the employee.