French Employment law - Nestlé Dismissal - Is the CEO's dismissal for having an undeclared relationship with a subordinate employee valid? Answer: No!

On September 1st, 2025, Nestlé France announced the dismissal of its CEO for having an undeclared relationship with a direct report.

According to the September 2, 2025 edition of Le Monde, an internal investigation was conducted by the Group's Chairman, the lead independent director, and a lawyer. https://www.lemonde.fr/economie/article/2025/09/01/nestle-annonce-le-licenciement-de-son-directeur-general-laurent-freixe-pour-cause-de-relation-avec-une-subordonnee-directe_6638068_3234.html

The internal investigation reportedly concluded that the "undeclared" relationship occurred in violation of Nestlé's Code of Business Conduct. This would have justified the dismissal of the CEO.

Nestlé's Code of Conduct is available online: https://www.nestle.com/sites/default/files/asset-library/documents/library/documents/corporate_governance/code_of_business_conduct_fr.pdf

This dismissal is of concern, given that in a recent decision of the Court of Cassation dated June 4, 2025 (No. 24-14.509), the Court of Cassation considered, on the contrary, that an invasion of an employee's private life rendered the latter's dismissal null and void.

In this decision, the Court of Cassation affirmed that a reason relating to the employee's personal life cannot, in principle, justify disciplinary dismissal, unless it constitutes a breach by the employee of an obligation arising from their employment contract.

1.1 Did the CEO violate Nestlé's Code of Business Conduct?

Nestlé states that this relationship between the CEO and his direct report violates Nestlé's Code of Business Conduct.

This code is signed by Group Chairman Paul Bulcke and Managing Director Laurent Freixe, who became CEO. https://www.nestle.com/sites/default/files/asset-library/documents/library/documents/corporate_governance/code_of_business_conduct_fr.pdf

This code includes provisions relating to conflicts of interest, gifts, entertainment, and hospitality, corruption, fraud prevention, the protection of company assets, insider trading, money laundering, and the financing of terrorism.

The article in the daily newspaper Le Monde indicates that the CEO's relationship with his direct report had not been "declared."

The business code of conduct does not appear to require making such a declaration of "intimate relationship".Licenciement Nestlé - Le licenciement du DG pour avoir eu une relation non déclarée avec une salariée subordonnée, est il valable ? Réponse non !

If the intimate relationship between the CEO and his subordinate created a conflict of interest, it should perhaps have been declared.

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

https://consultation.avocat.fr/blog/frederic-chhum/article-2974256-french-labour-law-nestle-dismissal-is-the-ceo-s-dismissal-for-having-an-undeclared-relationship-with-a-subordinate-employee-valid-answer-no.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