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)?
1 Answer
Under the French Labour Code, when buying a business, a buyer automatically inherits existing employee contracts, seniority, benefits, and collective agreements you canโt 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.