An agreement is lawful whereby the transferor of a business undertakes to reimburse the transferee for dismissal compensation

This decision sheds important light on your property rights. Here is what it means for you.

The situation

An agreement is lawful whereby the transferor of a business undertakes to reimburse the transferee for any compensation that the latter would pay in respect of notice periods and length of service to those employees whom it decides after the transfer to dismiss, provided that, since Article L 122-12 of the Labour Code does not prevent the new operator from terminating indefinite-term employment contracts for a real and serious cause, such an agreement does not harm the rights of employees to whom it cannot be opposed, does not relate to damages for unfair dismissal, and is not intended to circumvent the public policy provisions of the aforesaid article.

What the law says

This decision confirms the fundamental principles of property law.

Key points

• Strictly observe the legal time limits for bringing an action
• Keep all your supporting documents (titles, deeds, correspondence)
• Anticipate: preventive advice is always cheaper than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.