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1 February 2014

Continuation of current contracts in insolvency/bankruptcy proceedings

“Any clause that amends the conditions for the continuation of a current contract by diminishing the rights or increasing the obligations of the debtor merely because the latter has been placed in receivership is prohibited”[1]. Making an extensive interpretation of the principle of continuation of current contracts enshrined in Article L.622-13 of the French Commercial […]

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1 February 2014

Can non-compliance with applicable regulations lead to a distortion of competition?

In a decision rendered on January 21, 2014[1], the Commercial Chamber of the Cour de Cassation (French Supreme Court) has ruled that the operation, without prior authorization, of a business activity governed by the legislation on classified facilities for the protection of the environment[2] could be considered as an act of unfair competition. This decision […]

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1 February 2014

Undeclared work / subcontracting: contractors must carefully monitor the activities of their sub-contractors

Pursuant to a Decree dated December 3, 2013, new measures to combat social-related contribution evasion are now enforceable. These measures include aggravated sanctions/penalties for contractors that do not comply with their duty of vigilance and care towards their sub-contractors who commit the offense of undeclared work.  The 2013 Social Security Finance Law n°2012-1404 of December […]

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1 January 2014

New time-frames for consulting french works councils

The Law on securing employment of June 14, 2013, the main features of which were outlined in our March, May and June 2013 e-newsletters, has established the principle that an agreement between the employer and the Works Council (the “WC”), or in the absence of such agreement, a Decree of the Conseil d’Etat (Council of […]

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1 January 2014

Sudden breach of established business relationships: the contractual notice period may be held excessive as a result of an extensive interpretation of article l. 442-6 i §5 of the french commercial code

The number of court decisions concerning the sudden breach of established business relationships is continuously increasing… But the new rulings do not necessarily tally with what we would expect, as demonstrated by a decision recently rendered by the Cour de Cassation (French Supreme Court) and commented herein[1]. The facts of the case are as follows: […]

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