Succession and transfer of businesses in France

Abstract

French law has been inspired very early by the succession and transfer of businesses with the Act of 19 July 1928 which introduced what has become in 2008, Article L.1224-1 in the French Labor Code (previous article L. 122-12) according to which all employment contracts existing on the date of the transfer continue between the new employer and the company's staff. This article thus permits to deviate from the contract's relative effect principle resulting from Article 1165 of the French Civil Code.