Tripartite agreements are usually signed for the purchase of units in projects under construction. As a general rule, all parties agree, in a tripartite employment agreement, that the initial employment relationship (with company x) will be converted to a new employer (company y). At the same time, the original employment contract is terminated, without severance pay or any other benefit normally incurred in the event of dismissal. 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. 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.
PandaTip: Quite simply, a tripartite agreement is an agreement between three parties. You could have a tripartite confidentiality agreement, a tripartite non-compete agreement – you call it. However, tripartite agreements are most common when banks are involved in a transaction. That is why we have taken a little freedom and developed here a model for this type of tripartite agreement.