Introduces fines for firms that close factories deemed economically viable
01 Oct 2013
The French Parliament passed a bill imposing penalties on companies that shut down operations deemed economically viable. The law requires firms with more than 1,000 employees to prove that they have exhausted options for selling a plant before closing it. A commercial court can fine firms up to 20 times the minimum wage per employee laid off if it is judged not to have done enough to find a buyer. The bill also includes a measure to curb attempts to take over a company by gradually building up a dominant position in its shares. It lowers the threshold at which a public buy-out bid has to be made for all of its target’s capital to 25 per cent from 30 per cent.
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