1 / 9

A pplication of French Labour Law to distribution agreements

A pplication of French Labour Law to distribution agreements. Didier Ferrier Professeur émérite de la Faculté de Droit de Montpellier. Protection of the distributor by application of French Labour Law. Protection by direct application of French Labour Law (FLL)

francisbuck
Download Presentation

A pplication of French Labour Law to distribution agreements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Application of French Labour Law to distribution agreements Didier Ferrier Professeur émérite de la Faculté de Droit de Montpellier IDI – MunichJune 15, 2013

  2. Protection of the distributor by application of FrenchLabour Law Protection by direct application of French Labour Law (FLL) Salariedworker (French Labour code, art. L. 1221-1). « VRP » : Travelling sales representativewithin a specifiedterritory(French Labour Code, art. L. 7311-1). Protection by extension of French Labour Law BranchManager (French Labour Code, art. L. 7321-2). Branch Manager specialized in foodretailing (French Labour Law, art. 7322-1). Protection by inspiration from French Labour Law Commercial agent (French Commercial Code, art. L. 134-1). Business Manager (French Commercial Code, art. 146-1). IDI – Munich June 15, 2013

  3. LegalProtection by direct application of French Labour Law Requalification of distribution agreementsintosalariedworkeragreements • All provisions of French Labour Law apply to distribution agreements (franchisee, exclusive distributor...) in the event of a requalification whichhappenswhen the following conditions are satisfied: • Workprovided by the distributor to the financialbenefit of the supplier; • Remuneration of the distributorbased on the workdone (and not on the financialresults); • Subordination of the distributor to the supplier characterised by: • Orders and guidelines given by the supplier, • Monitoring by the supplier of the performance of hisorders and guidelines, • Disciplinarymeasuresinflicted by the supplier in case of distributor’sfailure to followorders and guidelines. IDI – Munich June 15, 2013

  4. The franchisorwasimposing: Resale prices, Orders and guidelines regarding the sellingmethod (compulsoryschedule of client meetings, with the obligation to complywith strict sale conditions), Obligation to regularly report on the workdone, Disciplinarymeasures in case of breach of agreement (abrupt termination of the contract). (French Supreme court, labour chamber,18 janvier 2012, n°10-16.342) E.g. : IDI – Munich June 15, 2013

  5. Protection by direct application of French Labour Law Requalification of distribution contractsinto « VRP » agreements • All provisions of French Labour Law (with the special bonus of a « clientele compensation » at the end of the contract) apply to distributorswho: • Prospect for the financialbenefit of the supplier ... • ... a clientele or a strictlydefinedterritory... • ... in a personal and exclusive way. IDI – Munich June 15, 2013

  6. Protection by extension of French Labour Law Application of some provisions of the French Labour Code (French labour code, art. L. 7321-2) • Some provisions of French Labour Law apply to distribution agreements in the following conditions: • The distributor (franchisee...) sellsproductssuppliedexclusively or quasi-exclusively by one single supplier; • On the premisesprovided or simplyapproved by the supplier (franchisor); • On the sales conditions and on sale pricesdefined by the supplier, Thesethree conditions have to be met. IDI – Munich June 15, 2013

  7. The franchiseesoldproductsexclusivelysupplied by the franchisor, On the premisesprovided by the franchisor and under the brand name of the franchisor The franchisor set the commercial conditions as well as the resale price of the products (French Supreme court, labour chamber, 9 March 2011) Case law on the requalification of distribution agreements E.g. : IDI – Munich June 15, 2013

  8. Protection by inspiration from French Labour Law Application of certain provisions of the French Labour Code • Protection of the distributoralsocomesfrom an indirect reference to French Labour Law: • Commercial agents (French Commercial Code, art. L. 134-1) whonegotiate and, whenrequired, contract on the behalf of and to the financialbenefit of the principal • Business managers (French Commercial Code, art. L. 146-1) whorun an economicactivity on behalf of and for the benefit of the owner (landlord). IDI – Munich June 15, 2013

  9. IDI – Munich June 15, 2013

More Related