Duty of vigilance: Bill passed... 1st deadline on 01/01/2018!

The draft law onduty of vigilance of parent and donor companieswas finally adopted by the National Assembly on 21 February 2017: the first binding deadline for the companies concerned (French and foreign), the mandatory publication of the vigilance plan in January 2018!

As a reminder, the main provisions of the text, which will be supplemented by an implementing decree expected shortly:

• These include:
  • companies,head office in Franceand employing at least 5,000 employees within them or their subsidiaries
  • subsidiaries of groupsheadquartered abroadand employing at least 10,000 employees within or in their subsidiaries
• Obligation to establish and effectively implement avigilance planto identify risks and prevent serious infringements of human rights and fundamental freedoms, health and safety of persons and the environment,Throughout the supply chain(subsidiaries and companies which the undertaking controls in the broad sense).
• Thevigilance plandeveloped in consultation with stakeholders and included in theSustainable Development Report, shall contain in particular:
  • Onerisk mapping
  • Regular evaluation procedures
  • Actions adapted to the risks: training of employees, formalisation of commitments and communication.
  • Oneevaluation mechanismthe effectiveness of the plan.
• Failure by the judge to comply with this obligation in due course and after being notified by the court shall be punishable bycivil fine up to 10 M€ : This amount may be tripled in the event of serious damage due to the non-existence or ineffectiveness of the vigilance plan.
• Any person who has an interest in taking action (victims of damage, NGOs, associations, trade unions) may bring the action for liability before the competent court.
• The vigilance plan should be published from January 2018for the current fiscal year, and the report on its effective implementation in January 2019.

While the government prides itself on a text that « honor the country » and make it « a corporate responsibility model« , the opposition has just filed an appeal before the Constitutional Council concerning the scope of the text, considered too broad and too vague, and the non-compliance with the principle of proportionality of sanctions: reply expected at the latest by the end of March...

Several initiatives and draft laws at European level tend to adopt a regulatory framework at least equivalent to that adopted by the French National Assembly...

* Final text of the « Proposal for a law on the duty of vigilance of parent and donor companies »available to our subscribers on request.