Transfer of employment contracts: the internal regulations are not enforceable against the new employer

Transfer of employment contracts: principle

When there is a change in the employer's legal situation in the context of, in particular, a succession or a merger, the employment contracts are transferred to the new employer (Labor Code, art. L. 1224-1 ).

This automatic transfer applies to employment contracts in progress on the day of the modification of the situation.

The transferred employees benefit from the same conditions of execution of their employment contract. They retain their seniority acquired with their former employer, their qualifications, their remuneration and their responsibilities.

Transfer of employment contracts: the internal regulations are not enforceable against the new employer

The internal regulations are not affected by this transfer of employment contracts.

Indeed, the Court of Cassation has just recalled that the internal regulations constitute a regulatory act of private law.
In the event of automatic transfer of the employment contracts, the internal regulations which were essential in the relationship with the former employer are not transferred. It is not binding on the new employer.

In the case decided, the employee was initially hired, in 1999, by a company L. In 2005, it had been bought by the company CZ His employment contract had therefore been transferred to company C.