After having been referred back to the Law Committee on January 29, 2015 (c.f. articles No. 8853 and No. 8341 concerning the first version of the text and its support by the NGO community) the socialist group tabled a new bill that seeks to oblige parent companies and contracting companies in the duty of care. The text sets out the obligation for businesses, where the parent company is located on French territory and employs at least 5,000 staff (including all subsidiaries) in France, or at least 10,000 around the globe, to set up and put in place a duty of care program, aimed at preventing human rights and environmental violations in its subsidiaries (either directly or indirectly under parent company control) as well as in “sub-contractors or providers over which the parent company can exercise “decisive influence”.
France: a new bill on the duty of care by multinational companies now goes to parliament
The socialist group in the National Assembly has tabled a new bill on parent companies’ and contractors’ duty of care that is to be examined at the end of March. The Ministry of the Economy and Finance reworked the text as it had been seen as too vague at a legal level. The new text maintains the obligation for large French companies to prevent human rights violations but softens both the scope for and the mechanism of sanctions.
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