France Télécom Case : recognition of institutional moral harassment
Crim. January 21, 2025, n°22-87.145

For the first time, the French Supreme Court has ruled that corporate executives can be held criminally liable for “institutional moral harassment” when they knowingly implement a corporate policy that deteriorates employees’ working conditions.

The High Court ruled that such conduct does not need to target a specific victim or occur within an interpersonal relationship between the perpetrator and the victim. Instead, it is sufficient that the individuals belong to the same work community for institutional moral harassment to be established. This concept thus falls within the scope of article 222-33-2 of the French Penal Code, which criminalizes “workplace harassment”.

An employer may refuse to reinstate a protected employee due to a risk of sexual harassment
Soc. January 8, 2025, n°23-12.574

The French Supreme Court held, based on the employer’s obligation to ensure workplace safety — which includes the duty to prevent sexual harassment — that the risk of sexual harassment within the company may constitute grounds for the impossibility of reinstating a protected employee. This applies in cases where the employee was dismissed for inappropriate behavior of a sexual nature towards a colleague, but whose dismissal was not authorized by the Labor Inspectorate.

Non-payment of overtime may justify requalification of a resignation as a dismissal without real and serious cause
Soc. January 15, 2025, nº23-16.286

The French Supreme Court reaffirms that an employer’s failure to pay overtime is a breach that makes it impossible to continue the employment contract. As a result, the employee’s resignation may be reclassified as an unfair dismissal.

An employee committing a criminal offense incurs civil liability for material damage caused to the employer
Crim. January 14, 2025, n°24-81.365

An employee who damages a company vehicle while driving under the influence of cannabis — an act constituting a criminal offense — incurs civil liability to compensate the employer, without the need to establish gross misconduct. The High Court clarified that this civil liability does not constitute a prohibited financial sanction under article L. 1331-2 of the French Labor Code but rather serves as compensation for damages caused to a civil party as a result of a criminal offense.