French financial institution SocGen ordered to pay rogue trader with the aid of Chine Labbé

A "rogue trader" who cost French financial institution Societe Generale (SOGN.PA) billions of euros in losses received a wrongful dismissal case on Tuesday while a hard work court docket ordered Jerome Kerviel's former enterprise to pay him 450,000 euros ($510,000) in compensation.

The courtroom, made up of same numbers of representatives of employers and change unions, ruled that the bank fired Kerviel with out "actual and extreme cause" because it waited too lengthy to push aside him after becoming aware about his misconduct.

SocGen legal professional Arnaud Chaulet branded the ruling "scandalous" and stated the financial institution could enchantment against a decision he stated ran counter to the regulation.

Kerviel, 39, become sentenced to a few years in jail after being convicted by using a Paris courtroom in October 2010 for breach of agree with and fraud inside the loss of four.9 billion euros in equity derivatives trades that went extraordinarily wrong in 2008.

Tuesday's ruling appeared certain to fuel controversy over the function of labor courts after the Socialist government dropped an strive this 12 months to restrict with the aid of regulation the quantity of damages they can award for wrongful dismissal.

The trader has in no way denied overlaying his 50 billion euro positions, but contends his managers need to were aware of his movements, some thing the financial institution has usually strenuously denied.

France's labor code offers companies two months to sanction misconduct, but the tribunal located that his positions had been known on account that 2007 while Kerviel changed into disregarded in February 2008, his lawyer David Koubbi stated.

Koubbi told Reuters the decision "restores justice and tears apart the story that Societe Generale has supplied from the start".

The ruling comes as Kerviel faces a separate civil case because of start next week before an appellate courtroom in Versailles approximately how a great deal he has to pay the financial institution in the direction of the losses.

France's highest court of appeal upheld Kerviel's prison sentence in March 2014, but dominated that he become now not answerable for four.9 billion in damages sought with the aid of the financial institution, starting the manner for the civil trial to determine a excellent.