The Beauty and the Beast

Yves Rocher Group found liable under the French Duty of Vigilance law


In 2012, the French cosmetic multinational Yves Rocher acquired the majority of Kosan Kozmetik Sanayi, a subsidiary operating a factory in Gebze, Türkiye. Between 2018 and 2019, this subsidiary dismissed more than 130 workers.

According to the claimants, these employees had joined the Petrol-İş trade union to protest poor working conditions, systematic discrimination against women, and instances of gender-based violence . In response to the dismissals and subsequent lawsuits in Turkey, the parent company conducted an internal audit which led to a settlement agreement with a portion of the employees.

In April 2020, NGOs and the trade union issued a formal notice to LBYR, urging the group to enhance its risk-mapping processes and specifically include violations of trade union freedoms in its scope of potential serious harms. Legal proceedings were formally initiated in March 2022.

The Court’s Reasoning and Decision

On March 12, 2026, the Paris Judicial Court ruled against the parent company, finding that it had failed to comply with its obligations under the Duty of Vigilance Law.

The judgment provides a rare judicial articulation of how civil liability operates within mandatory HREDD regimes, moving the focus from mere formal compliance to substantive adequacy.

Why the Court Ruled Against the Parent Company

Yves Rocher argued that they shouldn't be held responsible because their official corporate "vigilance plans" were focused on external supply chain risks, not their internal subsidiaries. They also argued that Turkish law, not French law, should apply to events happening in Turkey.

The court rejected these arguments, building a major new legal precedent based on three points:

  1. Subsidiaries Cannot Be Hidden: The court ruled that a company cannot selectively leave its own corporate subsidiaries out of its risk management mapping. Omiting them is a direct breach of the law.
  2. French Law Follows the Headquarters: The court declared the Duty of Vigilance Law to be an overriding public policy rule. This means French parent companies cannot use local foreign laws as a shield against accountability.
  3. Prior Knowledge Triggers Blame: Internal emails showed that the French executive team knew about the union-busting risks and had the power to stop the dismissals, but did not act. This clear inaction directly caused the workers' financial and moral harm.

Yves Rocher's Response

Following the court's decision the French news service Le Parisien reported that, the Yves Rocher Group stated that it "has taken note of the ruling" and is "waiting for the decision to be formally notified to decide whether to appeal it," whilst reaffirming "its commitment to the principles of the duty of vigilance." (Original quote in French)

The Payouts

  • The Six Individual Plaintiffs: The court ordered Yves Rocher to pay €5,000 in moral damages and €3,000 in financial damages to each of the six workers who maintained open legal standing.
  • (Note: Claims from 72 other workers were dismissed simply because they had already accepted a prior cash settlement directly from the Turkish subsidiary back in 2019, meaning their immediate financial losses were legally repaired).
  • The Trade Union (Petrol-Is): Awarded €30,000 for the collective harm done to the workforce, plus €10,000 for its own moral damages.
  • The NGOs (Sherpa & ActionAid): Awarded a symbolic €1 each for their advocacy work.

3 Big Takeaways for Corporate Managers

  • Look Inward first: Your due diligence strategy cannot just audit external suppliers. You must actively monitor the labor and environmental practices of the companies you actually own.
  • Paper trails matter: If your internal metrics or historic audit data highlight a regional risk (like union suppression or workplace safety problems), ignoring that risk in your public dashboard leaves you wide open to lawsuits.
  • Cross-border compliance is live: Local operations in manufacturing hubs are no longer safely separated from European corporate headquarters by geographical distance. Legal accountability is completely global now.
Views expressed on hredd.org are the author's own and do not represent the positions of any employer, partner organisation or programme. Nothing published here constitutes legal advice.

Referenced

Laws in this piece

French In force

French Duty of Vigilance Law

The pioneering 2017 framework for mandatory vigilance, this law legally compels large French companies to actively prevent global human rights and environmental harms, backed by strict civil liability and a growing history of extraterritorial enforcement.

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