Amounts owed by the employer under the employment contract prior to the judgment opening judicial reorganisation proceedings remain subject to the collective proceedings regime

This decision provides important insight into your property law. Here is what it changes for you.

The situation

Amounts owed by the employer under the employment contract prior to the judgment opening judicial reorganisation proceedings remain subject, even after the adoption of a reorganisation plan, whether by transfer or by continuation, to the collective proceedings regime. Consequently, a Court of Appeal that orders the company, acting through the commissioner responsible for implementing the plan, to pay the employee compensation for dismissal without real and serious cause, even though it had found that the termination of the employment contract was prior to the judgment opening judicial reorganisation proceedings, violates Article L. 621-40 of the Commercial Code.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly comply with the statutory time limits for legal remedies
• Keep all your supporting documents (title deeds, deeds, correspondence)
• Anticipate: preventive advice always costs less than litigation

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