According to the Labour Code, both the employer and the employee must perform the employment contract in good faith. This obligation applies to both the employer and the employee.
Breach of this obligation may result in the award of damages, provided the employee can demonstrate specific harm caused by the employer’s breach of good faith.
For instance, a company may be ordered to pay damages to an employee for the unfair performance of an employment contract if it is found that, having been informed of an assault on the employee by a subordinate, the employer failed to put a stop to this behaviour and protect the victim’s physical and mental wellbeing (Cass. Soc., 7 February 2007, No. 05-44.097).
In this case, the employer was questioned twice by members of the works council regarding their failure to take variable remuneration into account when calculating employees’ paid leave allowance. Following an audit, the situation was rectified ten years later.
The Court of Cassation ruled that an employer’s persistent failing entitles an employee to claim compensation for the unfair performance of their employment contract.
