In its judgment of March 5th, 2025 (No. 23-23.340), the Social Chamber of the Court of Cassation partially overturned the decision rendered by the Versailles Court of Appeal regarding the recognition of an employee's status as a senior manager.
In this case, the High Court reiterated that the mere mention of this status in an employment contract or in the company's organizational chart is not sufficient to characterize it. Furthermore, it reaffirmed that effective decision-making autonomy, as well as participation in the company's management, constitute essential and determining criteria for this recognition. This decision thus illustrates the rigor with which the court regulates the application of the executive regime, particularly regarding overtime pay, highlighting the importance of meeting these criteria when qualifying the status.
Analysis of the decision.
This ruling is in line with the Court of Cassation's case law aimed at restricting the application of executive status. Indeed, it reaffirms that this status cannot be recognized solely on the basis of contractual provisions or the company's organizational chart. Thus, the employee's effective autonomy must be proven, which implies that they genuinely participate in the company's strategic decisions. In this regard, a ruling dated November 4, 2021 (No. 20-18.813) issued by the Social Chamber of the Court of Cassation can be compared to our case in that it provides insight into the question of the qualification of senior executive under Article L3111-2 of the French Labor Code, which defines the working conditions and criteria to be met to be considered as such. Therefore, for this to be the case, an employee must not only have autonomy in their work, but also actively participate in the strategic definition of the company.
Indeed, Article L3111-2 of the French Labor Code sets out several cumulative criteria for recognizing the status of senior executive: significant independence in the organization of work, the ability to make decisions independently, and a salary among the highest in the company. However, these criteria are not limited to autonomy in the organization of work; The person must also be involved in the management of the company, in particular by participating in defining company policy, and not just by implementing it.
Thus, in the 2021 case, the Court of Cassation noted that the Court of Appeal had not relied sufficiently on specific evidence concerning the actual participation of the alleged senior executive in defining company policy. The court ruled that, although the latter enjoyed considerable autonomy in his work and was highly compensated, this was not sufficient to characterize his status as a senior executive within the meaning of Article L3111-2, since the employer justified the fact that he had to report his absences and request permission to be absent, which contradicted the idea that he had complete autonomy over his working hours. Consequently, this ruling of March 5, 2025, reminds employers of the importance of concretely demonstrating the autonomy of their managers to avoid reclassification in favor of the general employee scheme and overtime pay.
To read the full brief, click on the link below.
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
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
Pas de contribution, soyez le premier