Introduces fines for firms that close factories deemed economically viable

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.

• Type:

  • Treatment and operation (Other)

• Industry:

  • Not industry specific

• Sources:

  • Assemblee Nationale, Obligation de rechercher un repreneur en cas de projet de fermeture d’un établissement, http://www.assemblee-nationale.fr/14/ta/ta0214.asp, 01 Oct 2013
  • Reuters, French parliament passes law punishing plant closures, http://www.reuters.com/article/2013/10/01/france-industry-idUSL6N0HR3KJ20131001, 01 Oct 2013