Monday 7 March 2011

Wrongful dismissal: Renault, China and the bungling detective

Renault, the French car manufacturer, has found itself at the centre of a diplomatic row between Paris and Beijing after it sacked three executives for allegedly passing on top secret details on the development of electric cars to the Chinese.


Renault made the dismissals after a private investigator hired by the company’s internal security team reported that the three executives had “divulged strategic information” of Renault’s £4billion programme to develop electric vehicles to the Chinese and received the illegal payments in bank accounts in Switzerland and Luxembourg.

The three executive dismissed by Renault are Michel Balthazard, the Vice Chairman of pre-engineering; Matthieu Tenebaum, the deputy head of the electric vehicle programme; and Bernard Rochette, the head of pre-projects.

What is surprising about the story is that Renault chose to take action against the three executives based on the findings of the private investigator as he is based in Algiers and therefore was ill-placed and ill-equipped to carry out such a complex investigation.

In addition, an insider at the French intelligence agency DCRI (Direction Centrale du Renseignement Intérieur) said it was doubtful that the allegations are true.

According to the insider the bank account in Luxembourg identified in the investigator’s report does not exist and the Swiss bank account numbers provided are wrong.

Several MPs quickly came out in support of Renault, with the French Industry Minister, Eric Besson, saying China had declared “economic war” by commissioning the espionage.

China, needless to say, did not respond well to the allegations, and strenuously denies them.

Lawyers for the three executives say that they may sue for wrongful dismissal. All three also deny the allegations.

Wrongful dismissal occurs when an employer dismisses an employee in breach of their employment contract. For example, firing them without the correct amount of notice required by the contract or without following the contractual disciplinary procedure.

If successful with their wrongful dismissal claims, the executives will be entitled to compensation from Renault and may even be reinstated in their jobs.

For more information or advice on wrongful dismissal, you can get in touch with Job Justice today. Our solicitors can work out if you have a claim and what you should do about it.

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