Law on diversity and inclusion in business: Understanding the obligations

Diversity and inclusion are at the heart of business concerns. These have legal obligations to respect to guarantee equal opportunities and an inclusive work environment. In addition to legal compliance, this implies the creation of a climate of social and professional diversity which benefits both employees and the company.

Understanding of the law on diversity and inclusion in business

History and Legislative Evolution

The laws on diversity and inclusion in business have experienced 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 in favor of equal treatment in terms of employment and work.

These European directives therefore played a decisive role by imposing minimum standards to guarantee equality and inclusion. They forced countries to adopt measures to eliminate discriminatory practices and promote a wider professional inclusion. In France, these two directives were transposed by the law of November 16, 2001 on the fight against discrimination.

Current legal framework

The French legal framework for diversity and inclusion is based on a set of national laws. These texts are regularly updated to adapt to the contemporary challenges of society.

• The law of May 27, 2008 accounts for the definitions of discrimination of the 2001 law. In addition, it extends the concept of discrimination to sexual harassment and discriminatory injunction.
• In 2018, the law for the freedom to choose its professional future added measures to strengthen the inclusion of disabled people in the workplace. It requires companies with more than 20 employees to fulfill employment quotas for people with disabilities. And also to organize awareness -raising actions to promote their social and professional inclusion.
• Furthermore, article L. 1132-1 of the Labor Code prohibits discrimination in labor relations. This includes recruitment, training, promotions, and working conditions. It has become an essential basis for the fight against discrimination in the professional world. It covers the majority of discriminatory reasons, including gender, ethnic origin, and disability.

The regulatory authorities play a key role in the implementation of these laws. Labor inspection is responsible for the control of diversity, equality and inclusion practices in companies. She performs inspections, investigation into the complaints filed by the employees and, if necessary, imposes sanctions.

Other organizations such as the Defender of Rights and the High Authority for the Fight against Discrimination and for Equality (HALDE) also ensure the application of these laws and intervene to resolve cases of discrimination.

Legal obligations of companies in terms of diversity and inclusion

Gender equality

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

Subsequently, the law of September 5, 2018 for the freedom to choose your professional future established the index of professional equality. It measures the differences in remuneration, increase and promotion between women and men. But also the share of employees who benefited from an increase after maternity. In addition, it calculates gender parity among the ten highest wages.

Since 2020, companies with more than 50 employees must calculate and publish their index each year on March 1. Depending on the level of this index, the company must put in place corrective measures. And, if necessary, a salary catch -up plan, under penalty of being inflicted financial penalties.

In addition, there is the law of December 24, 2021 aimed at accelerating economic and professional equality, known as the "Rixan law". It requires quotas in the management positions of large companies by 2030. 40 % of women executives, under penalty of financial penalties for companies.

For more details, you can consult the website of the Ministry of Labor and Employment.

Fight against discrimination

Hiring, dismissal, appointment, sanction: no decision of an employer must be based on a discriminating criterion. This includes origin, gender, sexual orientation, religion, or disability. The principle of non-discrimination appears in the Labor Code. His disrespect, provided by the Criminal Code, can lead to three years' imprisonment and a fine of 45,000 euros.

Accessibility for people with disabilities

The law of July 10, 1987 created the employment obligation for disabled workers (OTTH). Thus, any company of at least 20 employees must employ employees with disabilities in a proportion of 6 % of its total workforce.

Compliance with the diversity and inclusion law

Conformity assessment

Your company must first ensure that it meets the standards of hardware accessibility (elevators, ramps) and digital (website, etc.). Regarding the fight against discrimination, the company must make available to its employees the various laws in force. Regarding gender equality, the company has the obligation to fill in an index which allows it to measure its situation and its possible improvements.

Companies can carry out an assessment of diversity within their teams thanks to compliance audits. Based on precise dashboards, they benefit from monitoring of diversity indicators and ensure their legal compliance.

Development of internal policies

Fighting business discrimination involves strong policies. They must include specific action plans to guarantee equal opportunities, promote social and professional inclusion, and set up concrete actions to reduce representation differences within the teams. The implementation of mentoring programs is also a good practice for strengthening inclusion.

Training and awareness of employees

It is crucial that companies invest in diversity training programs for their employees. These training courses must cover various themes, such as the fight against discrimination and the promotion of equal opportunities, the integration of people with disabilities and better gender equality in business.

Awareness of the laws on the diversity of collaborators promotes inclusion of work and creates a climate that respects differences. Continuing education in inclusion is a lever to guarantee compliance with regulations and improve corporate culture.

Tools and methods to comply with diversity and inclusion legislation

Diversity audits

This is a key step to measure the compliance of a business with legal diversity and inclusion obligations. These audits make it possible to collect essential data on the representation of the different categories of the population in the workforce. They facilitate the measurement of business inclusion and identify areas of progression. They can also include diversity indicators to assess the progress made in terms of diversity and inclusion.

Dashboards and performance indicators

These are essential tools to follow the progress made in the field of diversity. They allow companies to measure the effectiveness of their policies and to put in place corrective measures if necessary. The diversity index and the inclusion score are two examples of indicators to follow to guarantee fair and transparent management of human resources.

Mentorship and awareness programs

Inclusive mentorship programs are also a great way to promote business diversity. They make it possible to strengthen inclusive collaboration. They ensure that all talents, whatever their origins or their skills, have the possibility of developing within the organization.

Good awareness of inclusion also contributes to a harmonious integration of talents from diversified routes. And this facilitates the management of differences in business.

Advantages of legal compliance in diversity and inclusion

Improvement of the company's image

Respect for the laws on diversity and inclusion improves the image of the company and contributes to the construction of a strong employer brand. A company that respects the principles of equality and promotes diversity is positively perceived by its employees, customers and partners. This social responsibility is a key factor to attract talent and customers, which strengthens the attractiveness of the business.

Increase in employee satisfaction and retention

Companies that set up diversity and inclusion policies often have an increase in employee satisfaction. Respect for everyone's rights and the promotion of social and professional inclusion promote better retention of talents and greater employees' loyalty. This also leads to a reduction in turnover and better inclusive collaboration.

Positive impact on organizational performance

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

FAQ: your questions

What is the policy of diversity, equity and inclusion of your organization?

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

What are the 5 employer's obligations?

Among the important obligations of the employer, there is non-discrimination. The employer must also make developments for disabled workers. It must guarantee equality of wages. Access to continuing education is also an obligation. Finally, the employer must respect the quotas of disabled workers in the company.

What is a good declaration of diversity and inclusion?

A good declaration of diversity and inclusion must reflect the company's commitment to diversity and social inclusion. It must include clear objectives for equal opportunities. It must also offer actions to help the under-represented groups. Finally, a system must follow progress in these areas.

Sources

• EUR-LEX.EUROPA.EU
• Legifrance.gouv.fr
• Legal.defenseurdesdroits.fr
• UNEA.FR