Employee Transfer: Managing French Labour Law (Code du Travail) During Acquisition
Employee Transfer: Managing French Labour Law (Code du Travail) During Acquisition
What are the critical obligations a buyer faces regarding existing employee contracts and transfer rights under the French Labour Code (Code du Travail)?
2 Answers
Under the French Labour Code, when buying a business, a buyer automatically inherits existing employee contracts, seniority, benefits, and collective agreements you canβt just start fresh. This means you must honor all current rights, inform and consult employee representatives, and carefully manage any changes to avoid legal challenges. It can feel like a heavy responsibility because employees often see the new owner as the person who controls their livelihoods, so handling it respectfully and transparently not only keeps you compliant but also eases tension and builds trust for a smoother transition.
Under the French Labour Code, employee contracts automatically transfer to the buyer with their existing terms, seniority, and benefits preserved. The buyer must respect all contractual rights and collective agreements in force. Any changes require legal justification and proper consultation, making workforce continuity a core obligation of the acquisition.