ECJ: Applicable Law After Workplace Relocation

Jan 15, 2026 Benn-Ibler Rechtsanwälte

The European Court of Justice (ECJ) has examined which country’s labour laws should apply when an employee relocates to a different nation under their current employment contract.

In the case at hand, a Luxembourg transport firm had employed a French driver under a contract governed by Luxembourg law. Although the driver’s job spanned multiple European countries, it became mainly based in France, leading the employer to register him with the French social security system. The employment ended after the driver declined shorter working hours.

Subsequently, the driver initiated legal proceedings before the French labour court. The court initially applied Luxembourg law in accordance with the relevant agreement and dismissed the claim. On appeal, however, this decision was reversed; the appellate court determined that French law was applicable under the Rome Convention, as France constituted the driver’s habitual place of work.

After the transport company lodged an appeal, the Court of Cassation referred the matter to the European Court of Justice. The key issue before the ECJ was to determine the applicable law in situations where the contracting parties had not designated one, particularly if an employee, after working for a certain period at a specific location, was subsequently required to carry out their duties at another site which then became their new habitual place of employment.

The Court held that, in the absence of an explicit choice of law between the parties, all pertinent circumstances must be evaluated to determine the employee’s prospective habitual place of work and, consequently, the applicable legal framework. This methodology restricts party autonomy in designating governing law, aiming to safeguard employees through mandatory legal protections. In accordance with the Rome Convention, precedence is given to the law of the country where the employee ordinarily performs their duties, with the employer’s main business location considered as a secondary factor. However, if the surrounding circumstances reveal a stronger connection to another jurisdiction, these standard criteria may be set aside in favour of applying the law of the country with the most significant link.

As a result of the relocation of the workplace during the course of employment, the Court of Justice determined that jurisdiction cannot be established based on the employee’s usual place of work but must instead be determined by reference to the employer's place of business.

However, it remains within the purview of the Court of Cassation to determine whether factors such as the driver’s most recent habitual workplace or registration with the French social security system establish a closer connection.

ECJ C-485/24 (11 December 2025)