French Labour Code
In forceI.-Any company that falls underArticle 1 of Law 2014-856 of 31 July 2014 on the social and solidarity economy and meets the following cumulative conditions may apply for "social utility solidarity enterprise" approval:
1° The company primarily pursues at least one of the following objectives:
a) It carries out its activity on behalf of people who are vulnerable due to their economic or social situation within the meaning of 1° of Article 2 of Law no. 2014-856 of 31 July 2014 on the social and solidarity economy ;
b) It pursues an objective defined in 2°, 3° or 4° of Article 2 of the aforementioned Law no. 2014-856 ;
2° The expense incurred by its social utility activities has a significant impact on its income statement ;
3° The company's remuneration policy meets the following two conditions:
a) The average of the sums paid, including bonuses, to the five highest-paid employees or directors does not exceed, for a full-time job, a ceiling set at seven times the annual remuneration received by a full-time employee on the basis of the legal working week and the minimum growth wage, or the minimum wage for the sector if the latter is higher;
b) The sums paid, including bonuses, to the highest-paid employee or manager do not exceed, in respect of the year for a full-time job, a ceiling set at ten times the annual remuneration referred to in a ;
4° The company's equity securities, where they exist, are not admitted to trading on a French or foreign financial instruments market operated by a market undertaking or an investment services provider other than a portfolio management company or any other similar foreign body;
5° The condition referred to in 1° is set out in the articles of association.
II.-Benefit automatically from the authorisation mentioned in I, subject to meeting the conditions set out in Article 1 of the aforementioned Law 2014-856 of 31 July 2014 and the conditions set out in 3° and 4° of I of this Article:
1° Integration companies ;
2° Entreprises de travail temporaire d'insertion ;
3° Intermediary associations;
4° Workshops and integration sites;
5° Social integration organisations covered by article L. 121-2 of the Code de l'Action Sociale et des Familles;
6° Child welfare services;
7° Accommodation and social reintegration centres;
8° Les régies de quartier ;
9° Adapted companies;
10° (repealed) ;
11° Establishments and services providing assistance through work ;
12° Approved bodies mentioned in article L. 365-1 of the French Construction and Housing Code;
13° Associations and foundations recognised as being in the public interest and considered to be pursuing a social purpose within the meaning of Article 2 of the aforementioned Law no. 2014-856 of 31 July 2014;
14° Approved bodies mentioned in Article L. 265-1 of the Code de l'Action Sociale et des Familles;
15° The establishments and services supporting and accommodating disabled children and adults mentioned in 2°, 3° and 7° of the I of Article L. 312-1 of the same code ;
16° Legal entities that have signed an agreement mentioned in the second paragraph of article L. 281-2-1 of the said code and whose main task is to ensure the social and shared life project.
III - The following are treated in the same way as socially useful solidarity enterprises approved under this article:
1° Financing bodies at least 35% of whose assets are made up of securities issued by companies in the social and solidarity economy as defined in Article 1 of the aforementioned Law no. 2014-856 of 31 July 2014, at least five-sevenths of which are securities issued by social utility solidarity enterprises as defined in this article ;
2° Credit institutions of which at least 80% of all loans and investments are made to socially useful solidarity enterprises.
IV -Social utility solidarity enterprises are approved by the competent authority.
V.-A Conseil d'Etat decree specifies the conditions for application of this article.
