Payment Terms Legislation In France

The French Commercial Code enacts the EU Late Payment Directive, with the Hamon Law and Sapin II Law updating this code over recent years. (see European Union for details).

In addition French law has stricter maximum terms and penalties administered through an ‘Ombudsman for Undertakings’. Payment terms cannot exceed 60 days from the invoice date. However, where both parties agree, the terms are not grossly unfair, and are expressly stated a maximum of 75 days is possible, being 45 days from the end of month following the invoice date. Various maximum terms for specific products including 30 days for perishable and frozen foods, alcohol and transport services, and 20 days for live cattle and fresh meat, among others.

The Charter for Responsible Supplier Relations in France, created by the Ombudsman for Undertakings, promotes fair payment across 10 commitments.

The Charter of Good Practices in the Fashion and Luxury Goods Industry promotes standard terms of 30 days.

See European Union for the Directive on Unfair Trading Practices in the Food Supply Chain which was adopted on 30 April 2019.