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.

  • Implementation time frame:  The regulation took effect Dec. 4.
  • Who is affected: Employers with workers posted to France.
  • Business impact: Business operations will be delayed and companies may face stiff administrative fines for failure to comply with regulations regarding posted workers’ rights in France.
  • Next steps: Affected companies should review internal processes for posting workers to France and ensure they do not fall out of compliance with any relevant law or regulation.

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.

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