In essence, the tripartite agreement is simple: it is literally “any agreement that takes place between three parties in a case”. For companies that are either expanding internationally or have already done so, this usually concerns their own staff. Since companies in new areas want to get started as quickly as possible and at a lower cost, they often turn to outsourcing providers to access the necessary manpower. These three parties – the hiring company, the subcontractor and the employees – in this case form the tripartite agreement. However, in this particular situation, the agreements may not be so simple. If the outgoing supplier and the new supplier are unable to agree on the transfer of an employee, this can ultimately only be determined by that worker who lodges an appeal with the Labour Court. This should be avoided as far as possible because of the inconvenience and costs associated with defending such a right. As an alternative to litigation, the parties may consider a tripartite compromise agreement that gives all parties involved a certain degree of security and eliminates the need for litigation. However, it is important to note that an employer always has a firm obligation to ensure that, in the current circumstances, any termination or disciplinary action is both fair and appropriate. With regard to the broader topic of international mobility, tripartite agreements do not exclude the interest, or even the need, of drawing up an additional contractual document with a new foreign employer that meets certain conditions.
This is often particularly important with regard to market legislation on employment contracts. TUPE issues are inherently time-critical and should be treated with caution. Our work team advises you on all aspects of TUPE implications, on the provision of appropriate transaction agreements and, of course, on all aspects of the business transaction. If you feel that TUPE requirements can transfer obligations to you, do not hesitate to seek professional help as soon as possible. Tripartite agreements are usually a little more complicated when intra-group transfers of employment contracts are made. As a rule, these measures are formalized through the tripartite agreement between the original employer, the new employer and the worker. Once these agreements are established, all parties agree that the original employment contract A) will be transferred to the new employer and B) that the contractual relationship with this first employer will be terminated without compensation or specific procedure. But then again, all this can change in a subtle but important way depending on the country. He also points out that, while the idea is simple at the heart of tripartite agreements, the greater impact on internationally expanding companies is far from being the case.
Last but not least, all this underlines the importance of cooperating with the right partner organization in the context of international expansion. You can bring your ideas and expertise so that you can focus on these kinds of problems, while focusing all your attention on driving the business you`ve invested in. In 2014, the French Supreme Court ruled that an amicable termination could only be valid if the approved labor code contract termination procedure was followed. Under this procedure, workers receive compensation at least equivalent to what they would have received in the event of dismissal. This alone has created a cloud of uncertainty about intra-group transfers in the country. In fact, France has regularly played an important role in determining the form that tripartite agreements take around the world. . . .