Press Room

October 16, 2018

From France: Loi Avenir Professionnel (Professional Future Act): New Requirements to be Included in the Annual Management Reports

Source: Patricia Emeriau, Bruno Thomas or Etienne Pujol, Andersen Tax & Legal in France, a member firm of Andersen Global 


Act No. 2018-771, the Professional Future Act of September 5, 2018 (hereinafter referred to as the Act), require listed SA and SCA companies to include how parity between women and men is sought in their corporate governance report information. In particular, this applies to committees and the management (Direction Générale). This report also presents the results on gender diversity in the 10% of high responsibility positions (Commercial Code art. L.225-37-4,6°). In case the company doesn’t apply such a policy, the report must explain and justify the reasons for why it does not.

The Act also provides that all SA and SCA must give information on measures taken in favor of people with disabilities in the extra-financial performance declaration (Commercial Code art. L225-102-1,III para. 2). These new provisions apply to all reports issued on or after September 7, 2018.

Companies that have at least 50 employees shall publish every year, indicators relating to the pay gap between men and women. The employer must also disclose the actions taken to close these gaps (Labor Code art. L. 1142-8). Said companies have a three year delay to comply with the obligation of equal remuneration between male and female employees (Labor Code art. L. 1142-10).

The terms and conditions of publication on gender equality in remuneration must be implemented by several decrees introduced by January 1, 2019.

To be continued...

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