The repeal (annulment) of a legislative provision providing for a compulsory participation premium for employees of certain companies does not automatically render null and void (as of right) a collective agreement establishing that premium in the company.
A company had signed a collective agreement in 2011 setting out the conditions for introducing the profit-sharing premium. This premium was established by the Finance Act of July 2011. The December 2014 budget repeals it and the employer ceases to pay it.
The competent Labor Court ruled that the agreement was still applicable and ordered the company to pay the premium for 2014. The employer challenged the judgment and appealed on cassation.
The Court of Cassation dismissed the employer's appeal and ruled in favor of the Labor Court. The collective agreement was of indefinite duration and did not contain a clause making its application conditional on the maintenance of the legislative provisions.
