2011/16: The (central) works council of French subsidiaries must be informed of a foreign parent company merger project (FR)
The French Cour de cassation1 recently handed down a decision that increases French works council involvement in mergers where the decision-making is carried out at a higher level within the group, such as by the parent company. When a parent company located in The Netherlands and a US company were involved in a merger operation, the (central) works council (“CWC”) of the former’s French subsidiaries should have been informed, in compliance with the combined provisions of EC Regulations 802/2004 and 139/2004 relating to the control of mergers between undertakings and of Articles L.2323-1 and L.2323-20 of the French Labour Code, insofar as all the economic entities are either directly or indirectly affected by the acquisition of sole or joint control. The decision has wide-ranging implications for both French and international groups with subsidiaries in France.
Cour de cassation, chambre sociale (Social Chamber of the French Supreme Court), 2010-10-26