To fulfill its contract with a major European group, a computer-engineering services company hires a subcontractor. The subcontractor employs foreign engineers who do not hold French work permits, on the SSII's own site and without its knowledge. A labor-inspector's visit reveals the violation to our client (the SSII), which is ordered to put an immediate end to it. We then have to find an urgent solution to the human-resources problems, while bearing in mind the business implications and ensuring that future subcontracting relationships are trouble-free.

Issues

Because of its subcontractor our client is in danger of losing an important contract. Moreover, in the absence of a formal subcontracting agreement, it has to consider the possibility of criminal proceedings.

Solution

Working together, our firm's labor and business departments establish the required tools to terminate the contract with the subcontractor and to provide a secure basis for future work. We make advance preparations for a defense in the event of litigation by repeated meetings with the various parties, including the management of the French Labor Administration. We assume management of the crisis created by the immediate suspension of the subcontractor's activities. In particular, we provide support to our client in the negotiation and speedy drafting of a new contract with another subcontractor.

Results

Our client is able to stabilize the human resources situation. We also support it in maintaining regular commercial and financial relationships with other partners.