Corporate law on diversity and inclusion: understanding obligations

Diversity and inclusion are core concerns for companies. They have legal obligations to respect in order to guarantee equal opportunities and an inclusive working environment. In addition to legal compliance, this means creating a climate of social and professional diversity that benefits both employees and the company.

Understanding the law on diversity and inclusion in the workplace

History and legislative developments

Legislation on diversity and inclusion in the workplace has undergone a gradual evolution. A major turning point was the publication of two European directives in the early 2000s.

• The directive of June 29, 2000 established rules to combat discrimination based on race or ethnic origin.
• The directive of November 27, 2000 created a general framework for equal treatment in employment and occupation.

These European directives have therefore played a decisive role in imposing minimum standards to guarantee equality and inclusion. They have obliged countries to adopt measures aimed at eliminating discriminatory practices and promoting broader professional inclusion. In France, these two directives were transposed by the Anti-Discrimination Act of November 16, 2001.

Current legal framework

The French legal framework for diversity and inclusion is based on a series of national laws. These laws are regularly updated to keep pace with contemporary social issues.

• The May 27, 2008 law clarifies the definitions of discrimination set out in the 2001 law. It also extends the notion of discrimination to sexual harassment and discriminatory injunctions.
• In 2018, the law for the freedom to choose one's professional future added measures to strengthen the inclusion of people with disabilities in the workplace. It requires companies with more than 20 employees to meet employment quotas for people with disabilities. They are also required to organize awareness-raising initiatives to promote their social and professional inclusion.
• Article L. 1132-1 of the French Labor Code prohibits discrimination in employment relations. This includes recruitment, training, promotion and working conditions. It has become an essential basis for the fight against discrimination in the workplace. It covers the majority of discriminatory grounds, including gender, ethnic origin and disability.

Regulatory authorities play a key role in implementing these laws. The Labor Inspectorate is responsible for monitoring diversity, equality and inclusion practices in companies. It carries out inspections, investigates complaints lodged by employees and, where necessary, imposes sanctions.

Other bodies such as the Défenseur des droits and the Haute Autorité de lutte contre les discriminations et pour l'égalité (HALDE) also monitor the application of these laws and intervene to resolve cases of discrimination.

Companies' legal obligations in terms of diversity and inclusion

Gender equality

Guaranteeing gender equality is an obligation advocated in particular by the law of August 4, 2014. Thus, it is forbidden to mention in a job offer the gender of the candidate sought. But also to recruit a person taking into account his or her membership of one sex or the other. As an exception, however, certain specific jobs may be forbidden to women due to their dangerous nature.

Subsequently, the law of September 5, 2018 for the freedom to choose one's professional future introduced the professional equality index. It makes it possible to measure pay, raise and promotion gaps between women and men. It also measures the proportion of female employees who have benefited from an increase after maternity leave. It also calculates gender parity among the ten highest earners.

Since 2020, companies with more than 50 employees have had to calculate and publish their Index every year on March 1. Depending on the level of this index, the company must implement corrective measures. And, if necessary, a salary catch-up plan, on pain of financial penalties.

In addition, there's the December 24, 2021 law aimed at accelerating economic and professional equality, known as the "Rixain law". It imposes quotas in management positions in large companies by 2030. That is, 40% of women executives, on pain of financial penalties for companies.

For more details, visit the French Ministry of Labor and Employment website.

Fighting discrimination

Whether hiring, firing, appointing or punishing, no decision taken by an employer should be based on a discriminatory criterion. This includes origin, gender, sexual orientation, religion and disability. The principle of non-discrimination is enshrined in the French Labour Code. Failure to comply with this principle, as stipulated in the French Penal Code, can result in three years' imprisonment and a fine of 45,000 euros.

Accessibility for the disabled

The law of July 10, 1987 created the obligation to employ disabled workers (OETH). All companies with at least 20 employees are required to employ 6% of their total workforce.

Compliance with the Diversity and Inclusion Act

Conformity assessment

First of all, your company must ensure that it complies with accessibility standards, both physical (elevators, ramps) and digital (website, etc.). As regards the fight against discrimination, the company must make available to its employees the various laws in force. With regard to gender equality, the company is obliged to fill in an index that enables it to measure its situation and possible improvements.

Companies can assess the diversity of their teams using compliance audits. Based on precise dashboards, they can monitor diversity indicators and ensure legal compliance.

Developing internal policies

Fighting discrimination in the workplace requires strong policies. They must include specific action plans to guarantee equal opportunities, promote social and professional inclusion, and implement concrete actions to reduce gaps in representation within teams. Mentoring programs are also a good way of reinforcing inclusion.

Employee training and awareness

It is crucial that companies invest in diversity training programs for their employees. These should cover a wide range of topics, such as combating discrimination and promoting equal opportunities, integrating disabled people and improving gender equality in the workplace.

Raising employee awareness of diversity laws promotes inclusion in the workplace and creates a climate of respect for differences. Ongoing training in inclusion is a lever for ensuring regulatory compliance and improving corporate culture.

Tools and methods for complying with diversity and inclusion legislation

Diversity audits

This is a key step in measuring a company's compliance with its legal obligations in terms of diversity and inclusion. These audits provide essential data on the representation of different population categories in the workforce. They make it easier to measure corporate inclusion and identify areas for improvement. They can also include diversity indicators to assess progress in diversity and inclusion.

Dashboards and performance indicators

These are essential tools for monitoring progress in the field of diversity. They enable companies to measure the effectiveness of their policies and implement corrective measures where necessary. The diversity index and the inclusion score are two examples of indicators that should be monitored to ensure fair and transparent management of human resources.

Mentoring and awareness programs

Inclusive mentoring programs are also an excellent way of promoting diversity in the workplace. They reinforce inclusive collaboration. They ensure that all talents, whatever their origins or skills, have the opportunity to develop within the organization.

A good awareness of inclusion also contributes to the harmonious integration of talent from diverse backgrounds. And it makes it easier to manage differences in the workplace.

Benefits of legal compliance in diversity and inclusion

Improved corporate image

Compliance with diversity and inclusion laws enhances a company's image and helps build a strong employer brand. A company that respects the principles of equality and promotes diversity is perceived positively by its employees, customers and partners. This social responsibility is a key factor in attracting talent and customers, which in turn enhances the attractiveness of the company.

Increased employee satisfaction and retention

Companies that implement diversity and inclusion policies often experience an increase in employee satisfaction. Respecting everyone's rights and promoting social and professional inclusion leads to better talent retention and greater employee loyalty. It also leads to lower turnover and more inclusive collaboration.

Positive impact on organizational performance

It has been proven that diversity and inclusion have a direct impact on organizational performance. Diverse, inclusive teams are more innovative, more creative and more successful. By promoting inclusion, companies can gain a significant competitive advantage and strengthen their market position.

FAQ : Your questions

What is your organization's diversity, equity and inclusion policy?

This policy aims to offer equal opportunities to all. This is true regardless of gender, origin or disability. This includes actions to support the representation of under-represented groups. It also aims to create a working environment that respects diversity.

What are the employer's 5 obligations?

Non-discrimination is one of the employer's most important obligations. Employers must also make accommodations for disabled workers. Equal pay must be guaranteed. Access to continuing training is also an obligation. Finally, the employer must respect the quotas for disabled workers in the company.

What is a good diversity and inclusion statement?

A good diversity and inclusion statement should reflect the company's commitment to diversity and social inclusion. It should include clear targets for equal opportunities. It should also propose actions to help under-represented groups. Finally, a system must be in place to monitor progress in these areas.

Sources

• eur-lex.europa.eu
• legifrance.gouv.fr
• juridique.defenseurdesdroits.fr
• unea.fr