New “Essoc” Law

New Legislation Enacted

Law No. 2018-727 of August 10, 2018, (“Essoc” law, for a State in the service of a society of trust) allows companies to correct a mistake without penalty, provided it is the first involuntary mistake. The law also increases the fines by 50% for breaches and creates a “right to be controlled,” which allows a company or an individual to ask to be controlled by an administrative body. The result of the control will then bind the administration until circumstances change or until a new control gives different results. The law also provides other measures to increase legal security.

Law for Freedom to Choose One’s Professional Future

New Legislation Enacted

The Law for Freedom to Choose One’s Professional Future, which was enacted in September 2018, covers secondment of employees. Under the law, these employees must work out of national territory. Moreover, declarative obligations may be adjusted with approval from the labor administration for recurring secondments. Although the payment of a stamp disappears, the maximum amount of administrative fines is doubled for non-compliance, and foreign employers who fail to pay their fines may be prohibited from starting the contract.

Law for Gender Pay Equity and Against Sexual Harassment

New Legislation Enacted

Law No. 2018-703 of August 3, 2018, requires companies employing at least 50 workers to publish an annual report on any salary gap between men and women and take actions to remove the gap. If the results are below the threshold, the company shall take corrective measures, either unilaterally or through collective negotiation. After a three-year implementation window, companies in violation may be subject to financial penalty. The law also reinforces penalties for sexual harassment, which is now defined as including sentiments and behaviors with a sexual or sexist nature, and requires employers to inform employees about the law.

Bill to Combat Fraud Covers Companies Based Abroad or With Operations Abroad

Proposed Bill or Initiative

Pending under review is a bill to better detect, discover, and punish fraud by reinforcing agents’ access to useful information. The bill also seeks to impose administrative penalties against persons participating in fraudulent schemes, and punish third parties in case of silence or refusal to give information to government agencies. The bill sets a specific duty to inform and consult staff representatives about the price of transfers between companies and entities of the same group, including sales of material and immaterial assets, for companies based abroad or with operations abroad.