While corporations reducing the numbers of employees in France already face many regulatory hurdles, new rules set out in the French Labor Code have made it much more complicated for corporations in the country to lay off workers.
A number of recent court rulings have issued opinions holding that terminated employees could demand that corporations provide a valid financial basis for the termination of employees.
Should a corporation not be able to present a valid financial basis for the termination, the decision to release workers would be overturned.
If a termination is reversed, workers could collect back wages and damages from the day of the termination.
Given the severity of the punishment, multinational companies looking to reduce their work force in France must be able to provide a valid financial basis for terminating any employee.
Multinational Companies that are financially stable face an uphill battle in coming up with a valid financial basis for terminating an employee in France.