France: Historic First: Company Ordered to Pay Damages Under Duty of Vigilance Law

The cosmetic multinational Yves Rocher was ordered to pay damages to 6 ex-employees of its Turkish subsidiary and to a local trade union on the grounds that the company’s vigilance plan was not compliant.

The Yves Rocher ruling of 12 March 2026 by the Paris civil Court is highly significant for French companies employing more than 5000 employees in France or more than 10000 worldwide (i.e., companies under a legal obligation to implement a vigilance plan).

It is the first time that damages have been awarded due to the company’s failure to comply with its duty of vigilance obligations.

In this case, ex-employees of the company’s Turkish subsidiary argued that they had been dismissed on the grounds that they had joined a trade union (which was a violation of their human rights) and that this could have been avoided if the company’s vigilance plan had been compliant.

The Court considered that the company’s vigilance plan was not compliant namely because it was concentrated on possible supply chain risks without considering that risks could also exist within the company’s own subsidiaries. The Court also considered that Yves Rocher had had sufficient information at their disposal to identify this possible risk and include it in their risk mapping and that they also had had the means to act and namely to prevent such dismissals.

Although the amount of damages awarded were limited (48000€ to 6 ex-employees and 40000€ to the trade union), this ruling opens a new type of legal liability and it is highly likely that additional claims will be brought in the coming months.

This ruling may also impact foreign companies who are major subcontractors or suppliers of French companies as they will no doubt face growing requests for information on their own HR, human rights and environmental practices from their French clients.

Key Action Points for Human Resources and In-House Counsel

Check if your company or any of your major clients fall within the scope of the Duty of Vigilance law.