In case of dismissal without cause, the employee who was granted free shares which got forfeited due to his termination can claim to be compensated for the loss of chance to make profit in relation to the definitive acquisition of these shares if he had not been dismissed.
Damages for this loss of chance cannot however be equivalent the valuation of these shares in case they had been definitively vested.
The French Supreme Court recently reminded these rules, in a case where an employee had been dismissed four days before the vesting date of his free shares, granted one year before, and valued approx. EUR 213,000
The French Supreme Court confirmed the analysis of the Court of appeal which set to EUR 200,000 the amount of damages granted to the employee in relation to the loss of chance to vest his free shares.
Here, the judges granted damages to the employee in an amount very close to the valuation of the forfeited shares, as the dismissal occurred only few days before the vesting date. It would probably have been different in case the employee had been dismissed way before the vesting date.
Cass . Soc. 11 September 2024, 23-10.115