A French driver was employed by a Luxembourg transport company but drove in several European countries. To avoid any doubt, the employee and the company had agreed that the employment would be governed by Luxembourg rules.
After several years of employment, the company discovered that the employee had been working more than half the time in France for the past 18 months. They therefore registered him with the French social security system. In the meantime, the company had also decided to reduce his working hours. The employee did not accept this and was terminated.
The question was whether the termination should follow Luxembourg or French rules.
The European Court of Justice confirmed that the employee could be subject to the mandatory rules in France, even though they had agreed on Luxembourg rules. When deciding which country’s rules applied, it had to be considered that the intention was for the employee to work from France in the future.
iuno’s opinion
The main rule is that the rules of the country where the employee works apply. The case shows that even a change in the usual workplace shortly before a dispute arises can mean that the rules of the new country apply, if the intention is for the employee to work from that country going forward.
iuno recommends that companies agree on which country's rules should apply for employees working in multiple countries. Companies should also keep an eye on whether employees start working more in other countries than initially agreed. Besides employment rules potentially changing, it can also affect tax and social security.
[The European Court of Justice in case C-485/24 of 11 December 2025]