In a ruling dated 15 April 2026 (French Supreme Court, 15 April 2026, No. 24-14.551), the French Supreme Court clarified the limitation period applicable to an action for liability brought by an employee in respect of insufficient contributions to a supplementary pension scheme.
Facts
An employee, who had spent part of his career working abroad, retired in 2011. Taking the view that his employer had not correctly calculated the basis for contributions due to the Agirc supplementary pension scheme during his periods of expatriation, he requested a retrospective adjustment in 2016.
Following the employer’s refusal, he brought proceedings before the employment tribunal seeking damages in compensation for the loss resulting from the insufficient contributions.
Procedure
The Court of Appeal declared his claims inadmissible as time-barred, applying the two-year limitation period set out in Article L. 1471-1 of the French Labour Code.
The employee appealed to the Supreme Court, arguing that his action was subject to the ordinary five-year limitation period provided for in Article 2224 of the French Civil Code, as it concerned a statutory obligation distinct from the performance of the employment contract.
Decision
The Supreme Court dismissed the appeal.
It noted that, prior to the Act No. 2013-504 of 14 June 2013 on employment security, the employer’s obligation to affiliate its managerial staff to a supplementary pension scheme and to pay the corresponding contributions was subject to the ordinary five-year limitation period (French Supreme Court, 11 July 2018, No. 16-20.029 and No. 17-12.605). However, the introduction of Article L. 1471-1 of the Labour Code altered this framework.
The Court held that the duration of the limitation period is determined by the nature of the claim asserted. It found that actions seeking payment of sums due under this obligation, which are not of a salary nature, fall within the scope of the performance of the employment contract and are therefore subject to the two-year limitation period set out in Article L. 1471-1 of the Labour Code, as drafted following the Act of 14 June 2013.
Applying the transitional provisions of Article 21, V of that Act, it found that the limitation period, which began to run on the date the employee’s pension rights were liquidated (1 July 2011), had not expired as of 17 June 2013, the date of entry into force of the new Act. The new two-year period therefore applied and expired on 16 June 2015. The action brought in 2016 was therefore time-barred.
Practical implications
Employers may rely on the two-year limitation period for claims seeking compensation in relation to insufficient contributions to supplementary pension schemes, where such claims relate to the performance of the employment contract.
This decision highlights the importance for HR departments of accurately identifying the starting point of the limitation period, particularly in pension matters, in order to manage late claims from employees.
