Corporate Duty of Vigilance Law

  • Updated

LAW DETAILS

COUNTRY
France
CATEGORY
International Trade: Human Rights Due Diligence
LEGAL CODE TITLE
Corporate Duty of Vigilance Law
LEGAL CODE REFERENCE
Art. L. 225-102-4
REVISION DATE
March 27, 2017
LEGAL JURISDICTION
National / International
FACILITY APPLICABILITY
Brands and Retailers headquartered or doing business in France

SUMMARY OR KEY PROVISION OF THE LAW

The French Corporate Duty of Vigilance Law, amended March 28, 2017, requires large corporations with 5,000 or more employees headquartered in France and foreign corporations with 10,000 or more employees doing business in France to create and implement a vigilance plan. The plan should identify risks and prevent violations of human rights such as child labor, forced labor, and trafficking resulting from the activities of parent companies, subsidiaries, and any subcontractors used by the parent company or subsidiaries. Vigilance plans must include (1) procedures to identify risks; (2) methods to regularly monitor subsidiaries and subcontractors; (3) adequate approaches to mitigate risks and prevent serious harm; (4) a method to report risks; and (5) a method to monitor the efficacy of preventative measures. Victims or other affected parties may inform the courts of a company’s failure to have a plan or implement a plan, and the company may be ordered to implement a plan and to compensate victims who suffered because of its noncompliance as a breach of a duty of care. (Source: US Department of Labor)
 

LEGAL CONSEQUENCES FOR NON-COMPLIANCE

Judges can apply fines of up to € 10 million when companies fail to publish plans. Fines can go up to € 30 million if this failure resulted in damages that would otherwise have been preventable
 

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