Reference decision: Cour de cassation, Social Chamber • No. 78-40.535 • 9 May 1979 • View the decision →
In 1979, in Paris, an employee of the Groupement National Interprofessionnel des Semences et Plants (GNIS) found himself without a job after his activity was taken over by another organisation. This case, decided by the Cour de cassation on 9 May 1979, was to establish a fundamental principle in employment law, directly applicable to the property sector: where the same business continues under a new employer, the employee's employment contract is automatically transferred. For property owners, the question is similar: what happens to the caretaker when the building changes hands? Can one dismiss him on the pretext that his contract was not signed by the new owner? The answer, given over forty years ago, remains highly relevant today.
Although this ruling was made in an agricultural context, it has general application extending to any transfer of an economic entity, including the sale of a residential building with an employee. In Paris, where the investment property market is dynamic, property managers (syndics) and purchasers must consider every consequence. We will decipher this decision, its practical consequences and the precautions to take to avoid costly litigation.
📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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