France: Constitutional Council abandons provisions for the issuing of fines, under law on multinationals’ due diligence

On the evening of 23 March, France’s Constitutional Council ruled that the provisions for issuing fines, under the law on the due diligence of multinationals companies, are not compliant with the constitution. Other provisions of the law were validated by the body, notably that which allows companies to be deemed responsible for damages that occur abroad at a sub-contractor or a supplier.
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With its ruling on 23 March 2017 as regards the law on companies’ due diligence, the Constitutional Council validated the provisions which oblige French companies, with more than 5,000 workers in France or more than 10,000 workers across the globe, to draw up a due diligence plan to prevent risks of human rights violation.

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