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Employees on redeployment leave are eligible for a mandatory profit-sharing bonus

By a decision of November 7, 2018, the French Supreme Court specified the rights of employees on redeployment leave.

In the present case, several employees had been made redundant. They had opted in for a redeployment leave of several months. For the months spent on redeployment leave (beyond the term of the standard notice period), they had not received any mandatory profit-sharing bonus, although the other employees – who had not been affected by the redundancy – had received one.

The employees claimed payment of this bonus over the period spent on redeployment leave (beyond the term of the standard redeployment leave), which the employer objected to, stating that the allowances paid during the redeployment leave are not treated as salary for the purpose of calculating the amount affected to profit-sharing fund.

The French Supreme Court confirmed the decision of the Court of Appeal, which had ruled in favor of the employees on redeployment leave, considering that they should indeed benefit from profit-sharing, since they still were employees of the company, whether or not their remuneration is taken into account for the calculation of the profit-sharing fund.

Cass. Soc. 7 November 2018, n°17-18936 17-18937 17-18940 17-18941 17-18942 17-18943