FRANCE Trends and Developments Contributed by: Laetitia Tombarello and Audrey Demourgues, Bredin Prat
publicity measures to inform those who may have suffered harm as a result of the established breach. • A collective procedure for the liquidation of harm (with the exception of harm resulting from bodily injury) in which the court, after finding the employer liable, authorises the trade union or association to negotiate a settlement agreement with the employ - er on compensation for all affected persons within a period set by the court which cannot be less than six months. The parties must then determine the harm to be compensated for each category of persons or, failing that, the elements allowing its assessment. The settlement agreement is then subject to approval by the court, which verifies whether it is in accordance with the interests of the parties and grants it enforceable status. In the absence of an agreement, or upon expiry of the period, the court will rule on the harm eligible for compensation (under the principles mentioned in the paragraph above). The DDADUE Act also allows for the implementation of a mediation procedure between the party bringing the action and the employer, under the supervision of a mediator appointed by the court. Joining the class action as an employee To benefit, where applicable, from compensation obtained through a collective action, affected employ - ees must submit a claim for compensation either directly to the employer found liable or to the trade union or association fronting the class action, which then receives a mandate for this purpose. The claim must be made within the time limits set by the judg - ment. Class actions, whether aimed at putting an end to a breach or at compensation for damages, suspend the limitation period for individual actions seeking compensation for damages resulting from the breach established by the court, or facts retained in the settle - ment agreement approved by the court. The limitation period begins to run again, for a duration that cannot be less than six months, from the date on which the judgment is no longer subject to appeal (either to the Court of Appeal or to the French Supreme Court) or from the date of the approval of the settlement agree - ment by the court.
Civil fines In addition to damages, the court may impose, upon request from the public prosecutor ( ministère pub- lic ), a civil fine if the employer is found to have acted deliberately for gain or to achieve undue savings. The amount of the fine is set by the court in proportion to the seriousness of the misconduct and the ben - efit derived by the employer. It can reach up to five times the profit derived from the unlawful conduct if the employer is a legal entity, representing a signifi - cant financial risk for companies, particularly as the DDADUE Act specifically provides that such fines are not insurable. By exception, this civil penalty will not apply to any proceedings initiated from 3 May 2025, but only to class actions in which the event giving rise to liability Once a class action judgment is final, individuals com - pensated through the action cannot bring separate claims on the same grounds. However, claims for dif - ferent types of harm remain available through ordinary legal channels. By extending class actions to virtually all aspects of the employment relationship, the DDADUE Act sub - stantially increases litigation risks for employers. The potential for large-scale claims and significant civil fines highlights the need for rigorous compliance with labour laws and proactive dispute resolution to miti - gate the risk of collective actions. Obligation to Consult Works Councils on Sustainability Issues The transposition of the European Corporate Sus - tainability Reporting Directive (CSRD) into French law has reinforced companies’ non-financial reporting obligations. Under the transposed CSRD, companies exceeding certain thresholds must now include a ded - icated section in their management report detailing how sustainability issues (environmental, social, and governance) impact the company. Additionally, under the newly amended Article L. 2312-17 of the French Labour Code, certain companies are required to con - sult their works councils on sustainability issues, and occurred as from that date. Impact on individual lawsuits
213 CHAMBERS.COM
Powered by FlippingBook