The bill concerning the duty of vigilance of parent companies and contracting entities was adopted on first reading by the National Assembly on March 30, 2015.
This legislation primarily stipulates that companies employing at least 5,000 employees within their organization and their direct or indirect subsidiaries headquartered in France, or at least 10,000 employees within their organization and their direct or indirect subsidiaries headquartered in France or abroad, at the close of two consecutive financial years, must establish and effectively implement a vigilance plan.
The procedures for submitting and implementing the vigilance plan, as well as the conditions for monitoring its implementation, will be defined by decree.
In the event of non-compliance with these provisions, the legislation allows the presiding judge of the court, ruling in summary proceedings, to impose a civil fine not exceeding €10 million. This same penalty would apply if the company were held liable.
The text was submitted to the Senate on March 31, 2015. No date for committee work has been set yet.
