- retirement compensation (“indemnité de départ à la retraite”, IDR): the scale set by collective agreement is more favourable than that of the National Collective Bargaining Agreement for the Chemical Industries. Thus, when they retire, employees may benefit from retirement indemnities ranging from 2 months’ salary for 5 years’ service to 8 months’ salary for 40 years of service. In order to increase the special leave prior to retirement, employees may opt to convert all or part of their retirement indemnities into time, or may choose to receive payment of all or part of the retirement indemnities, which will be made at the time they leave the Company.
These commitments are guaranteed by external financial cover aimed at gradually building up funds derived from premiums paid to external organisations.
- The Time Savings Account (CET): this optional scheme enables employees to plan the end of their career or increase their retirement income. Employees can bank up to 10 days of leave per year in the CET, five days of which attract an employer contribution of +25% and/or a cash payment, up to a maximum of 6% of gross remuneration per year. This scheme is capped at 300 days. The CET can finance a shift to part-time working from the age of 55, early retirement, increased retirement income, or a retirement lump-sum. CET savings are valued on the basis of the employee’s final salary. A maximum of 10 days per year can be transferred to the defined contribution scheme or the L’Oréal PERCO (CET days transferred to the PERCO attract an employer contribution of +20%).
Employee Welfare schemes in France
In addition to the compulsory guarantees provided for by the collective bargaining agreements, L’Oréal has set up, in France, under an agreement, an Employee Welfare scheme providing additional collective guarantees to its employees.
All these guarantees are based on gross income and can total up to eight times the French annual social security ceiling. They are generally financed on Brackets A, B, and C of income, except for the Education Annuity which is based on Brackets A and B, and the Surviving Spouse Pension which is based on Brackets B and C.
This Employee Welfare scheme provides guarantees in the event of:
- incapacity: to all employees, 90% of their gross remuneration limited to 8 social security caps, at this level net of charges, after the first 90 days of work stoppage; in the event of disability: to all employees, a fraction that is a function of the level of disability, rising to 90% of their gross remuneration limited to 8 social security caps, up to this amount net of charges;
- in the event of death:
- for all employees, the payment of a Lump Sum Death Benefit, increased depending on the employee’s family status. The amount of this Benefit is doubled in the event of accidental death;
- for the employees affiliated with the benefit scheme for managers, employees governed by Article 36 of the AGIRC convention and sales representatives, the payment of a Spouse Pension to the surviving spouse. This ensures that the spouse has an income similar to the Surviving Spouse Pension paid for supplementary retirement contributions on the portion of remuneration greater than the annual cap on social security if death had occurred at the age of 65; and
- for all employees, the payment of an Education Annuity to each dependent child, according to an age-based schedule.
The total amount of the Lump Sum Equivalent for these guarantees may not exceed €2.3 million per event.
Minimum guaranteed lump sum death benefits
L’Oréal has established an additional guaranteed Lump Sum Death Benefit that supplements, where applicable, for all employees, the Lump Sum Death Benefit in an amount equal to three years’ average income. The total amount of the risk capital needed to fund the Surviving Spouse Pension and Education Annuity, the Lump Sum Death Benefits and the minimum guaranteed Lump Sum Death Benefit is capped.
Healthcare expenses
The healthcare scheme is compulsory for all the employees of L’Oréal and its French subsidiaries. Employees have the option of including their family members in these schemes. Contributions are generally individual. The contribution by the employee is partly financed by the Company.
4.3.2.6. Promoting Diversity, Equity and Inclusion
Diversity, Equity and Inclusion are part one of the Group’s strategic commitments, which aims to have teams that reflect the diversity of its consumers all over the world and to provide all its employees with an equitable and inclusive working environment. The Group also adopts an inclusive approach towards communities, suppliers and stakeholders. The Group’s strategy in terms of Diversity, Equity and Inclusion is built around four key pillars:
- Gender and LGBTQIA+: achieve gender parity at all levels and functions of the company; contribute to the establishment of more inclusive environments in favour of the LGBTQIA+ community everywhere in the world; act against any type of harassment or violence, particularly sexism, sexual harassment and gender-based violence;
- Disability: accelerate the inclusion of people with disabilities, by means of targeted actions, with a minimum target for employees with disabilities in all countries;
- Socio-economic and multicultural background: promote and increase the diversity of socio-economic and cultural origins in the Group’s teams;
- Age and generations: encourage dialogue and cooperation among employees of different generations.
The Group’s policy on Diversity, Equity and Inclusion is also reflected in its approach towards its suppliers (see section 4.3.3.6. “Measures taken in favour of communities” of this document), its consumers, partners, communities and the NGOs and associations dedicated to inclusion on each continent.
To achieve its objectives, L’Oréal relies particularly on an internal network of “Diversity Coordinators”, in all of its entities, who are the guarantors of the Group Diversity, Equity and Inclusion policy which they adapt to their local context.
The Group shares its achievements and progress in a dedicated section on the loreal.com website.
To measure the perception of the Diversity, Equity and Inclusion of employees, “Pulse”, our annual in-house survey on employee engagement, includes questions on this issue.
