In a decision dated July 10, 2024, the French Supreme Court ruled that a reorganisation taking place while an employee is on sick leave should not be altogether considered as ‘unrelated to any discrimination’ in the event this reorgaization is not based on a valid economic rationale.
In the case brought to the French Supreme Court, the employee, who was the company’s CFO, had been placed on sick leave from 2014 to 2016 by his family practioner as a result of an occupational illness. He was declared fit for work by the Labour practionner in November 2016 but went back on sick leave at his employer’s suggestion. In 2017, he was made redundant.
He brought his case to the Employment Tribunal, claiming that his termination was null and void for it was based on his medical condition, hence discriminatory. The employee argued that he was deprived of any working means when he had returned to work late 2016 and in 2017 he was the only manager impacted by the company’ reduction in workforce.
In the Court of appeal’s view, these two factors hinted at a possible discimination. It was therefore for the employer to prove that the redundancy was based on objective grounds unrelated to the employee’s heath. The Court of appeal was inter alia convinced that the company had been facing economic difficulties in 2014 and 2015.
The Court of appeal thus held that the employee’s redundancy was based on objective factors that were unrelated to the employee’s medical condition and therefore not discriminatory. They nonetheless upheld the employee’s arguments regarding the economic rationale, i.e., the economic difficulties put forward by the company dated back 2014 and 2015 and no evidence was provided as to the company’s economic situation at the time of the employee’s termination. The dismissal was therefore held to be unfair.
The French Supreme Court quashed the Court of appeal’s decision, considering that, if the economic justification was not real and serious enough, the employee’s termination should not be altogether considered ‘unrelated to the employee’s health’.
Based on this decision, employers with an insufficient economic case may be held liable to pay uncapped damages to employees made redundant while on sick leave.
French Supreme Court – 10 July 2024 Nr. 22-16.805