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IMPACT – MEDIUM
What is the change? French authorities have been given new tools to enforce the labor rights of foreign workers posted to France.
What does the change mean? Under a new regulation, French authorities have the power to immediately suspend international services agreements in cases where companies breach the “fundamental rights” of posted workers, including rights related to pay and working conditions. Companies found liable may have their operations in France temporality suspended and could face administrative fines of up to €10,000 per employee if they do not correct violations.
Background: Under the decree, companies posting workers in France must make sure that they are in compliance with France’s labor laws concerning wages, hours, working conditions and accommodations. If a labor inspectorate finds a serious breach of law, French officials can temporarily suspend the company’s operations. Suspensions will be lifted if employers correct the violations, but companies that fail to do so face fines of €10,000 for each employee whose rights were violated. The decree follows a series of other regulations established in the past year to protect against abuse of foreign workers in France.
BAL Analysis: The new regulation is part of France’s broader attempt to protect foreign workers’ rights and prevent the domestic labor market from being undercut by poor wages or working conditions. Companies should review their internal processes to make sure they are in compliance with labor laws.
This alert has been provided by the BAL Global Practice group and our network provider located in France. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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