Implementation of the EU Pay Transparency Directive - New developments in France June 2026

Why should I read this?

The EU Pay Transparency Directive (Directive (EU) 2023/970 of 10 May 2023) was required to be transposed by Member States by 7 June 2026. The French Ministry of Labour has shared a new version of the French transposition bill. This new version is significantly more advanced than the first draft and introduces several important changes.

This briefing summarises the key aspects of the new draft, subject to adoption of the final text and the implementing decrees.

Why do these developments matter?

The first draft bill, circulated earlier this year, contained 9 articles divided into 2 titles. The public sector section had not yet been drafted, and the provision on public procurement referred to wording that was still “to come”.

The new version contains 22 articles divided into 4 titles. It now comprehensively covers:

• the private sector (Title I)
• the public sector (Title II, Articles 8 to 17)
• specific provisions: public procurement, La Poste, Orange SA (Title III)
• entry-into-force rules (Title IV)

The draft confirms that France is taking an approach that is more demanding than the Directive in several respects: application from 50 employees, the central role of categorising work of equal value, significant involvement of employees representatives, and a strengthened sanctions regime which now includes a criminal component.

At this stage, the text remains a draft and may still evolve during the legislative process.

What you need to know about the new French bill?

The key features of the new French draft bill are set out below.

• New reporting framework: companies with at least 50 employees will be required to report annually on indicators relating to pay gaps between women and men. The number of indicators is no longer fixed in the draft bill (the reference to the “seven indicators” in the first draft has been removed) and will be left to decree
• Indicator by category: the new draft maintains a specific indicator by category of employees performing the same work or work of equal value, to be reported every three years by companies with 50 to 249 employees, and annually by companies with at least 250 employees
• Companies with 50 to 99 employees: importantly, the new draft bill provides that a collective agreement may stipulate that the employer is not required to report the indicator on pay gaps by category of employees performing the same work or work of equal value. Where this indicator is reported and a gap exceeds the threshold to be set by decree (5% under the Directive) and is not justified by objective criteria unrelated to sex, the employer will be required to enter into negotiations with its trade unions in order to remedy that gap. The first draft referred only to “measures aimed at reducing” the gap; the new version is firmer, but expressly allows for objective justifications
• Companies with at least 100 employees: enhanced obligations are maintained, including information and consultation of the works council, possible requests for explanations and justifications from employees, the works council or trade union delegates, and corrective mechanisms where unjustified gaps persist
• Protection against abusive requests: the employer is not required to respond to abusive requests relating to the indicator by category, in particular due to their number or their repetitive or systematic nature
• Individual confidentiality: for the indicator by category, where disclosure to employees could reveal the pay of an identifiable employee, the information would be provided only to the works council, subject to a confidentiality obligation. For the individual right of access, the text provides for non-disclosure without any mandatory substitution through employee representatives
• Recruitment transparency: the initial pay range and relevant collective bargaining provisions must be communicated to candidates, either in the job advert or, if there is no advert, before or during the interview. Employers may not ask candidates about their pay history
• Pay confidentiality clauses: clauses preventing employees from disclosing information relating to their pay are prohibited
• Work of equal value: the definition is rewritten in the new draft around a “comparable set of objective criteria unrelated to sex” which must include “in particular” professional knowledge evidenced by a title, diploma or professional experience, skills resulting from acquired experience, soft skills, working conditions and physical or mental strain
• Categorisation: in principle, categorisation is to be set by company-level agreement. A sector-level agreement may also be applied, where negotiations for a company-level agreement have failed, by unilateral decision of the employer after consultation of the works council. Finally, in the absence of a company-level agreement, or a sector-level agreement applied unilaterally, a unilateral decision may set the categories, again after consultation of the works council. Unilateral decisions would be valid for three years
• Broader burden of proof rules: where no real comparator can be found, the employee may use any other evidence, including statistics or a hypothetical comparison with how an employee would be treated in a comparable situation
• Strengthened sanctions: the introduction of a specific criminal regime: two years’ imprisonment and a EUR 7,500 fine in the event of pay discrimination committed against several persons Administrative penalties of up to 1% of pay (2% in the event of repeat offences) and EUR 450 penalties for certain breaches are maintained
• Public procurement: companies that have been sanctioned may be excluded from public procurement and concession contracts for one year
• Public sector: a complete title applies to public employers, with indicators, corrective procedures, sanctions and adapted evidentiary rules
• La Poste and Orange: specific provisions apply to public-sector employees of La Poste and public agents working for Orange SA

What is likely to happen next?

The text remains a draft and still needs to be adopted by Parliament. The transposition deadline has already passed; it is more likely that a final bill will be adopted by the end of 2026.

Most provisions applicable to the private sector would enter into force on a date set by decree and, at the latest, one year after promulgation of the law. The indicator by category would be subject to a staggered timetable: no later than 3 years after promulgation for companies with 100 to 149 employees, and 6 years after promulgation for companies with 50 to 99 employees. Employees’ right to information on their level of pay and average pay levels would enter into force when the agreements or unilateral decisions setting the categories of workers enter into force.

For the public sector, the provisions would enter into force one year after promulgation for employers managing at least 150 agents; 1 June 2030 for the others, subject to exceptions.

Many aspects of the draft law remain subject to separate implementing decrees, the timing of which is not yet known.

How we can help

Our extensive global footprint and our established equal pay practice means that we are well placed to support global employers in getting ready for pay transparency compliance, wherever they have a presence. Our lawyers are not only experts in the complexities of different laws, but also in the management of projects spanning jurisdictions and driving those projects to maximize the strategic aims and benefits.

With the added benefit of our internal tools that allow us to track and respond to ongoing developments, as well as our Diversidata product, our teams are ideally placed to help companies ensure legal compliance and transform their wider diversity and inclusion strategies.

You can track the latest developments on our Navigating Global Pay interactive site, as well as access to essential FAQs, timelines, a summary of the Directive, a glossary and briefings. Request access to our site here.