CIR, rebilling and unauthorized companies: current case law

The Versailles Administrative Court has handed down an interesting decision concerning the research work carried out on behalf of a third party by a non-approved company (i), and concerning distinction between provision of services and provision of personnel (ii).

• The judges confirm that a non-approved company can carry out work on behalf of a third party, and include it in its CIR even though it invoices the work.

The "Research expenditure carried out by a non-accredited organization on behalf of a third party is likely to be taken into account in determining the CIR available to that organization".

• The judges also challenged the department's position that the company was merely making employees available to its principal (ENGIE in this case).

The judges point out that :

• It is true that the employees work on the premises and with the resources of the "client" company, in return for a lump sum fixed according to the duration of the assignment, but the services "consisted in carrying out research and development operations".
• "A production was to be delivered at the end of this period.
• Moreover, the employees had not been recruited solely for the assignment in question, but their contracts stipulated that their main place of work was ENERGEO's head office, and that between assignments, employees on "inter-contracts" remained under the responsibility of their line manager.
• The company bears a risk, particularly financial, in the event of poor performance.

Finally, the judges point out that a CDI de chantier has the nature of an open-ended contract, and therefore the remuneration of a young doctor recruited under such a contract can be taken into account for double its amount..