Home / Publications / Risk of requalification of a secondment contract into...

Risk of requalification of a secondment contract into a permanent contract with the hosting company

In an interesting case that settled to a final decision, our firm represented an employer at the Labor Court, where the legal situation of an employee seconded to Monaco for an initial length of time exceeding 2 years was submitted.

While the employee was asking for the hosting company to requalify his secondment contract into a permanent one, the Court dismissed it considering the hosting company proved the link with the original company was still existing, and this notwithstanding the operational control that the hosting company was operating on the employee's activity to assess the smooth running of the mission.

Without ruling on the length of the secondment, the Court has recalled that its principle was a "temporary transfer of an employee within another entity while maintaining a contractual relationship with the original company", and felt that recognizing the existence of a contract of employment with a hosting company as long as it provides work to the seconded employee, directly remunerates him or organizes the operational control of his activities, would question the very principle of secondment.

Authors

The picture of Sophie Marquet
Sophie Marquet
Avocat Associé | Partner
Monaco