A recent news story highlighted by Les Echos illustrates how sensitive the boundary between independent contracting and employment can be, particularly when it comes to social security contribution reassessments. In practice, a contract labelled “services agreement” is not enough: what matters is the reality of the relationship as it is experienced and organised on a day-to-day basis, so as to avoid the risk of reclassification as an employment contract.

Why is this topic back in the spotlight?

The debate over how to classify “independent contractor / principal” relationships is longstanding, but it becomes especially visible when major players are involved (UBER in this case). The key value of these high-profile matters is to reiterate a simple rule: contractual labels do not prevail over the facts.

For businesses (SMEs, mid-caps, start-ups, platforms, agencies, IT service providers, professional firms, etc.), the issue is very practical: a collaboration model involving freelancers, consultants or subcontractors may be challenged if, in practice, the organisation of the work resembles an employer/employee relationship.

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Setting up a micro-enterprise or developing a self-employed activity alongside salaried employment is becoming increasingly common.

In a decision of 14 January 2026 (No. 24-20.799), the French Court of Cassation (Social Chamber) reiterates that an employee may not, during the performance of their employment contract, create and carry on an activity that directly competes with their employer. And crucially: such competition may be sufficient to constitute gross misconduct, even if the activity is carried out outside working hours, without using the company’s tools, and even if it generates little (or no) turnover.

Key takeaways

• Holding multiple jobs is in principle possible, but it must not compete with the employer.
• The duty of loyalty applies throughout the contract, even without a non-compete clause.
• A competing activity may justify dismissal for gross misconduct, even if it is “marginal”.

Understanding multiple activities in light of the duty of loyalty

1) Multiple activities: a generally accepted principle, but not a “right to compete”

An employee may, in principle, carry on another activity alongside their employment (for example, through a micro-enterprise), provided that it does not disrupt the performance of the employment contract and does not harm the employer’s legitimate interests.

Where difficulties begin is when the side activity operates in the same market, targets a similar customer base, or offers similar services. In that case, the issue is no longer mere “multiple activities”: it is competition.

2) The duty of loyalty: a continuous requirement during the contract

Employment law requires performance of the contract in good faith. In practical terms, this translates into a duty of loyalty: the employee must avoid conduct that creates a conflict of interest with their employer (competition, diversion of customers, use of internal information, harm to reputation, etc.).

An important point: this duty exists even if the contract contains no specific clause. In other words, the absence of a clause does not mean “complete freedom”.

3) Competing activity: how to identify it in practice

In litigation, the central question often becomes: is the side activity truly competing? Judges look at the reality of the facts, including:

• the nature of the products/services offered (identical or very closely related);
• the target market and customer base (shared prospects, same area, same needs);
• communications (website, social networks, listings, advertising) and the risk of confusion;
• the use of know-how, methods, or information acquired within the company.

An activity may therefore appear “small” or “occasional” yet still be characterised as competing if it is positioned on the same ground as the employer.

4) What the decision of 14 January 2026 (No. 24-20.799) says: competition may be enough to constitute gross misconduct

In the case at hand, an employee had created, during the employment relationship, a sole trader/micro-enterprise offering services in a field similar to that of the employer. The Court of Appeal had downplayed the impact of this activity, noting in particular its residual nature and the absence of a non-compete clause.

The Court of Cassation overturns that reasoning: where the side activity is competing during performance of the contract, certain arguments frequently relied upon become irrelevant, for example:

• “I do it outside my working hours”;
• “I don’t use any of the company’s equipment/tools”;
• “My turnover is low (or nil)”;
• “There is no non-compete clause”.

The message is clear: the mere fact of creating and carrying on a competing activity during the contract can constitute a serious breach of the duty of loyalty, capable of justifying dismissal for gross misconduct.

Good to know: gross misconduct is misconduct that makes it impossible to keep the employee in the company, including during the notice period. In this type of case, the debate therefore focuses on the characterisation of competition and the reality of the activity.

5) Don’t confuse: duty of loyalty (during the contract) and the non-compete clause (after the contract)

A non-compete clause generally applies to the period after termination of the contract, and is subject to a strict legal regime (validity conditions, proportionality, financial consideration, etc.).

Conversely, the duty of loyalty applies during performance of the contract, without needing to be expressly provided for. This is precisely why the absence of a non-compete clause does not protect an employee who carries on a competing activity during the contract.

6) From the employer’s perspective: securing the situation (and avoiding procedural missteps)

If you suspect a competing activity, the key is to respond methodically: intuition is not enough. The strength of the case often depends on evidence and legal characterisation.

• Identify what is competing (services, customers, communications, geographic area, offering);
• Document with usable elements (website, posts, listings, quotes, reports, statements);
• Check that the evidence was obtained lawfully (no illegal surveillance);
• Assess whether the sanction is proportionate in light of the facts.

Warning: in disciplinary matters, timing and the drafting of the allegations are decisive. A prior audit often helps avoid a challenge before the French Labour Court (Conseil de prud’hommes) based on inadequate legal characterisation or weak evidence.

7) From the employee’s perspective: how to start a business without putting yourself at risk

Starting a side business is possible… provided you do not step onto the employer’s ground. Before launching an activity, it is useful to ask yourself a few simple questions:

• Am I offering the same thing (or almost) as my employer?
• Am I targeting the same customers or prospects?
• Could my communications create confusion?
• Am I using know-how, methods, or information originating from the company?

If in doubt, it is better to secure things upfront (legal analysis, precise scoping of the offering, differentiation of the target) rather than expose yourself to disciplinary proceedings.

And if proceedings begin, it is essential to react quickly: an action challenging termination of the contract is in principle subject to a limitation period of 12 months from notification of the termination.

8) Conclusion: “multiple activities” yes, competition no

The 14 January 2026 case law forms part of a clear trend: the Court of Cassation protects the relationship of trust during performance of the contract. A side activity is not a problem in itself; it is a competing activity that causes the breakdown.

Whether you are an employer (risk prevention, disciplinary management) or an employee (starting a business, securing your project), a quick legal review can prevent serious consequences: Contact our firm

Reference: Cass. soc., 14 January 2026, No. 24-20.799.
Read the decision (Court of Cassation)

Note: this article is for informational purposes and does not replace legal advice tailored to your situation.

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As we begin the year, the entire Patchwork.Law team sends you our best wishes for 2026: good health, peace of mind, and every success in your projects.

In a demanding social and economic environment, we remain by your side with the same guiding principle: to secure your decisions, prevent risks, and deliver practical, operational solutions in employment law.

“Best wishes for 2026
May this new year bring peace of mind, shared success, and harmonious working relationships.
We are delighted to start 2026 alongside you, with the same enthusiasm and energy as ever.
Wishing you all a wonderful and happy year!”

2026: our priorities to support our clients in employment law

In 2026, we are strengthening our commitment: delivering cutting-edge expertise in employment and labour law, and solutions tailored to your challenges.

Our concrete commitments

• Responsiveness in HR emergencies (suspension, disciplinary hearing invitation, internal crisis, sensitive communications)
• Clarity: clear, prioritised, actionable recommendations
• Risk-proofing: procedure, evidence, timeline, documentation
• Pragmatism: a strategy adapted to your context (size, constraints, culture, exposure)

What we take away from last year

Prevention remains the best “investment”

In employment law, many disputes arise from details: a procedure, a document, or evidence that is not properly framed. In 2025, the most effective approaches were those combining legal certainty and traceability.

The human factor is at the heart of risk

Sensitive situations (tensions, alerts, breakdown of trust) require careful steering: listen, establish the facts, protect—and decide. Employment law is an area where form is often inseparable from substance.

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The 2025 Décideurs – Leaders League guide has just published its rankings. Patchwork Avocats has once again been ranked among the best law firms specializing in labor law.

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Coming into force on April 1, 2025, the unemployment insurance reform introduces a series of adjustments designed to adapt the scheme to changes in the labor market and budgetary balances. This reform, which applies to all jobseekers, has differentiated effects according to profile. In particular, it includes targeted measures for senior citizens and entrepreneurs. Here are the main changes to remember.

Monthly benefits: a standardized basis

One of the major changes introduced by the reform concerns the method of calculating benefits. These are now paid on the basis of a flat-rate month of 30 calendar days, regardless of the month of the year. This measure is designed to simplify the management of entitlements and ensure greater clarity for beneficiaries. It applies to all recipients, including those whose compensation began before April 1, 2025.

Jobseekers aged 55 and over: the reform

The reform includes specific changes for older jobseekers. Maximum compensation periods are now set at 685 days (22.5 months) for those aged 55 or 56, and 822 days (27 months) for those aged 57 and over. These changes are in line with our policy of adapting to longer working careers.

In addition, an important measure concerns the degressivity of unemployment benefit, which applies after six months of compensation to beneficiaries receiving a daily allowance above a certain threshold. Recipients aged 55 or over are now exempt, whereas previously this exemption only applied from the age of 57. The aim of this change is to provide better support for senior citizens in their return to employment, taking into account the increased difficulties they face.

Business start-ups: more restrictive rules for accumulating benefits

The system applicable to business start-ups has also been modified. To qualify for ARCE (Aide à la reprise ou à la création d’entreprise), the second instalment is now conditional on the absence of a full-time permanent employment contract. In addition, there is now a ceiling of 60% on the combination of the ARE (Allocation d’Aide au Retour à l’Emploi) with income from self-employment.

In the event of cessation of entrepreneurial activity, ARE rights can be reactivated, but only after application of a specific deferral period. These new rules are designed to provide a stricter framework for situations involving the accumulation of ARE rights, in order to ensure consistency with the objectives of a return to employment. In addition, an important measure concerns the degressivity of unemployment benefit, which applies after six months of compensation to beneficiaries receiving a daily allowance above a certain threshold. Recipients aged 55 or over are now exempt, whereas previously this exemption only applied from the age of 57. The aim of this change is to provide better support for senior citizens in their return to employment, taking into account the increased difficulties they face.

Intermittent workers and short contracts: technical adjustments

Other measures concern fragmented or seasonal career paths. The minimum period of employment entitling workers to compensation has been lowered to 5 months (from 6) over a reference period of 24 months. This measure is aimed in particular at seasonal or alternating workers with discontinuous career paths.

At the same time, the right to resume previous compensation is facilitated. Recipients who interrupt their unemployment to take up a short-term job – less than 88 days worked or 610 hours – will be able to recover their rights without having to reconstitute their entire period of affiliation.

Conclusion: what impact for vulnerable profiles?

While this reform is in line with a logic of accountability and budgetary efficiency, its effects are not uniform. Seniors, who face greater difficulties in accessing employment, benefit from certain protective measures, but also see the maximum duration of compensation slightly reduced before the age of 57. Entrepreneurs, for their part, will have to contend with stricter rules on accumulating benefits, likely to have an impact on their ability to secure their entrepreneurial career.

As Laurent Moreuil, partner at Patchwork, pointed out in an article published in Le Monde on 14.06.2024: “The delicate balances governing labor law and social protection are probably underestimated”.

A reflection that reminds us of the need to measure, beyond technical adjustments, the human and economic impact of each reform.

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The Patchwork Avocats team would like to wish you all the best for 2025: may it be a year of success and fulfillment, both professionally and personally.

2024 was a year rich in achievements for our firm. We have had the pleasure of supporting our customers in a number of ambitious projects, meeting complex legal challenges together, and consolidating our commitment to excellence and innovation.

We owe our success to your trust and inspiring collaborations, which motivate us to continue evolving to offer you the best possible service.

In 2025, we remain determined to make your projects a success, and to support you with the same exacting standards and enthusiasm.

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Patchwork Avocats earns distinction in Décideurs 2024 ranking

Parisian law firm Patchwork Avocats, renowned for its expertise in labor and employment law, confirms its excellence by once again appearing in the prestigious Décideurs 2024 ranking. This distinction testifies to the recognition of the know-how and commitment of the firm’s lawyers to a demanding clientele.

Recognition in several Décideurs categories

The Décideurs 2024 ranking highlights Patchwork Avocats in several key categories, consolidating its position as a key player in its field. Notable distinctions include:

Restructuring, redundancy plans and related litigation

Individual risk litigation

Executive representation

The firm is acclaimed for its ability to handle complex cases involving senior executives, corporate officers and professionals with atypical statuses such as sportsmen and women, journalists and artists.

Collective bargaining and labor relations

M&A social management and social audits

Patchwork Avocats: A firm at the cutting edge of legal innovation

Founded on a resolutely human and collaborative approach, Patchwork Avocats stands out for its ability to actively listen to its clients’ needs and offer tailor-made solutions. This recognition by the Décideurs ranking crowns a year of achievements marked by :

• Proactive management of post-crisis issues for businesses.
• Innovative work on issues related to new ways of working, such as teleworking and hybrid contracts.
• Strong involvement in public interest causes, particularly on issues of discrimination and equality in the workplace.

A team of excellence

At the head of this success story are passionate lawyers, including partners Laurent Moreuil, Stéphanie Ropars, Céline Bruneau and Lionel Kohn. Their expertise and dedication position Patchwork Avocats as a trusted leader in the French legal landscape.

A forward-looking vision

With this latest Décideurs 2024 award, Patchwork Avocats has confirmed its place as one of the most influential law firms in the field of employment law. This ranking reflects the firm’s rigorous work and avant-garde vision of legal and human issues, ensuring that its clients receive reliable and effective legal solutions.

In 2024, Patchwork Avocats continues to evolve, reinforcing its position as an essential strategic partner for companies and managers seeking high-level legal advice.

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