Source date: 2026-03-19
Obligation of loyalty
Can you combine a salaried job and a micro-enterprise in the same activity? Published on March 20, 2026 - Entreprendre Service Public / Directorate of Legal and Administrative Information (Prime Minister)
Combining a salaried job and an activity as a micro-entrepreneur in the same sector is becoming increasingly common. But is it legal? In a ruling issued on January 14, 2026, the Court of Cassation reminds us of the obligation of loyalty.
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An employee working as a carpenter is simultaneously running a micro-enterprise in the same sector, outside of their working hours. The employer dismisses them for serious misconduct on the grounds that it constitutes a breach of their obligation of loyalty. The employee appeals to the labor court to contest the validity of their dismissal and seek financial compensation.
The court of appeal finds that the dismissal is invalid for several reasons:
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the employment contract did not contain a non-compete clause;
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no acts of competition were carried out by the employee;
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no equipment belonging to the employer was used;
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the employee's revenue remains low, which allows their activity to be classified as residual;
The Court of Cassation invalidates these arguments. Indeed, it considers that the employee is subject to an obligation of loyalty. The existence or absence of a non-compete clause is irrelevant: an employee cannot compete with their employer. The judge acknowledges the classification of serious misconduct since the mere act of creating and operating as a micro-entrepreneur in a directly competing activity to that of their employer justifies the employee's dismissal from the company.
The Court holds that the residual nature of the activity or the non-use of the employer's equipment should not be taken into account. The dismissal is not devoid of real and serious cause, and is therefore valid.
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Source: Service-Public professionals