Software company obtains complete victory in employment reclassification case

Client(s) French subsidiary of global software company

The French employment court released a decision in favor of the French subsidiary of a global software industry company represented by Jones Day in connection with a €1.50 million employment reclassification action brought by the former Managing Director of the French subsidiary.

The Managing Director, who held a non-employee position, alleged that he was never allowed the autonomy necessary to properly perform his management duties. He claimed that most business decisions were made by the parent company, to which he reported on the actions taken at the French level. On this basis, he asked the employment court to reclassify his Managing Director job as an employment position, and to consider his removal from office as wrongful discharge.

The employment court found that the Managing Director's reporting obligations did not exceed standard reporting requirements for groups of companies. The court also found that the Managing Director failed to prove that he was in a subordinate position vis-à-vis the parent company in the day-to-day performance of his duties. The court rejected all of the compensation and damages claims filed by the Managing Director.