This decision is very important because it would affect two-thirds of the spouses of self-employed tradespeople and business owners, representing 1.4 million people, the vast majority of whom are women (see the Advocate General's Report).

The existence of a subordination relationship is not a condition for the application of the provisions of Article L121-4 of the French Commercial Code, which establishes the status of employee spouse, even when the business owner is the director of a company.

This is what the French Supreme Court affirmed in a ruling of March 25, 2026 (24-22.660), published in the Bulletin.

Article L121-4 of the French Commercial Code stipulates that the spouse of the head of a craft, commercial, or professional business who regularly carries out professional activity within that business may choose one of the following statuses: 1. Collaborating spouse; 2. Salaried spouse; 3. Partner spouse (…).

In the absence of a declaration of professional activity, a spouse who has regularly carried out professional activity within the business is deemed to have done so under the status of salaried spouse.

From now on, the spouse of a company director may benefit from the status of salaried spouse provided they regularly carry out professional activity within the company without having to demonstrate a subordinate relationship.

III. Ruling.

The Court of Cassation quashes the judgment of the Aix-en-Provence Court of Appeal.

According to Article L121-4 of the French Commercial Code, as amended by Law No. 2008-776 of August 4, 2008, the spouse of the head of a craft, commercial, or professional business, who regularly carries out professional activity within that business, may opt for the status of salaried spouse, including when the business owner is also the director of a company.

To reject Ms. [J]'s claims, the judgment holds that a spouse who participates or has participated effectively and regularly in their spouse's business activity under conditions that do not constitute spousal assistance has employee status without the need to establish a subordinate relationship. However, these principles do not apply to a spouse who claims to be an employee of a company of which their spouse is the director; in such cases, the spouse must prove a subordinate relationship.

In so ruling, when the existence of a subordinate relationship is not a condition for the application of the provisions of Article L121-4 of the French Commercial Code concerning the status of salaried spouse, the Court of Appeal violated the aforementioned text.

IV. Analysis.

It should be noted that the Advocate General had recommended dismissing the appeal.

The Court of Cassation disagreed and overturned the ruling of the Aix-en-Provence Court of Appeal.

This opens the door to reclassifying the spouses of company directors as employees.

This reclassification is facilitated by the presumption in Article L121-4 of the French Labor Code.

As mentioned above, this would affect 1.4 million spouses of self-employed tradespeople and business owners.

Until now, case law had interpreted Article L121-4 of the French Commercial Code restrictively, as it did not address the situation where the spouse requesting recognition of employee status was the spouse of a company director.

Thus, as the text remained silent on this point, case law had opted to require the spouse seeking recognition of employee status to demonstrate a relationship of subordination (Aix-en-Provence Court of Appeal, September 26, 2024, Case No. 23/12187).

 

However, the present ruling challenges this interpretation by holding that a spouse who actively and regularly participates in their partner's business has employee status without needing to establish a relationship of subordination, even when the business owner is a company director.

 

In principle, under labor law, an employment contract consists of work performed, remuneration, and a relationship of subordination.

 

Article L121-4 of the French Commercial Code constitutes an exception to the general principles of labor law in that proof of a relationship of subordination is not required. It should be noted that while proof of a subordinate relationship is not required in this case, the status of salaried spouse is not automatic.

The spouse of a business owner seeking recognition of salaried spouse status must therefore demonstrate that they participate effectively and regularly in their spouse's professional activity (Angers Court of Appeal, May 25, 2023, Case No. 19/00319).

Furthermore, this participation must not constitute spousal assistance.

To read all the article, please click on the link below

https://www.village-justice.com/articles/statut-conjoint-salarie-conjoint-pas-prouver-lien-subordination-meme-lorsque,57024.html

Frédéric CHHUM avocat et ancien membre du conseil de l’ordre des avocats de Paris (mandat 2019-2021)

CHHUM AVOCATS (Paris, Nantes, Lille)

e-mail: chhum@chhum-avocats.com

www.chhum-avocats.fr

https://www.instagram.com/fredericchhum/?hl=fr

.Paris: 34 rue Petrelle 75009 Paris tel: 0142560300

.Nantes: 41, Quai de la Fosse 44000 Nantes tel: 0228442644

.Lille: : 45, Rue Saint Etienne 59000 Lille – Ligne directe +(33) 03.20.57.53.24

                                        

Sources.