France Releases an Amended Draft Law to Implement the Pay Transparency Directive

Although France has missed the June 7, 2026 deadline for transposing the EU Pay Transparency Directive into national law, the government recently released a revised draft of such a law. Below are the key features of the draft law, with notable changes indicated from the March draft. 

Scope

The draft law applies to companies employing both private and public-sector employees. The specific transposition provisions applicable to public-law employers and agents now form part of the draft law.

Work of equal value

The categorization of employees performing work of equal value must be established through a company-level agreement. However, it may also be determined by an industry-wide collective agreement (“accord de branche”).

If no agreement is reached following negotiations with representative trade unions at the company level, the employer may implement the industry-wide collective agreement by unilateral decision, subject to prior consultation of the Social and Economic Committee (CSE)—the employee representative body. This unilateral decision is valid for a period of three years.

JUNE 2026 REVISIONS: In the June revisions, company-level negotiations appear to take precedence, as the employer may apply the industry-wide collective agreement only after unsuccessful bargaining at the company level. Application of the industry-wide collective agreement remains discretionary rather than mandatory. To note, the industry-wide collective agreement cannot be implemented directly and must be formalized through a unilateral employer decision. Failing both a company agreement and the application of an industry-wide collective agreement, the employer may proceed with employee categorization by unilateral decision, subject to consultation with the CSE, with such decision valid for three years. The revisions reflect the continued legislative preference for social dialogue and decentralized regulation through company-level collective bargaining and an intention to prioritize negotiated solutions.

In the June revisions, a new obligation is introduced at the industry-wide level, requiring trade unions to initiate negotiations on employee categorization within six months of the law’s enactment.

The revised draft law also amends the definition of work of equal value by expanding the criteria used to assess comparability. Work will be considered of equal value when it requires from employees a comparable combination of:

• professional knowledge validated by certification, diploma, or professional practice; 
• abilities stemming from acquired experience; 
• non-technical skills; 
• responsibilities; 
• working conditions; and 
• physical or mental workload. 

However, the June revisions clarify and slightly broaden the scope of the criteria used to define categories of work of equal value (listed above). The listed criteria are no longer exhaustive: categories may also be based on other objective, gender-neutral factors beyond those expressly mentioned in the text. At the same time, the revised draft law confirms that the list is not mandatory in full, meaning that certain listed criteria may be omitted when structuring categories, provided the overall assessment remains grounded in objective, non-sex-based factors. These revisions appear intended to provide employers with greater flexibility when defining categories of work of equal value.

Pay Transparency in the Pre-Employment Phase

The draft law confirms the Directive’s requirements during the recruitment process. Employers will be prohibited from requesting information from job applicants about their salary history. In addition, any job advertisement must indicate the proposed salary range for the position and reference the relevant provisions of the applicable collective bargaining agreement used to determine remuneration. Where no job posting is published, the employer must provide this information to the candidate in writing, either before the interview or during the recruitment process.

The June revised law retains the key transparency measures contained in the original draft, including mandatory pay-range disclosure in job advertisements. Employers have the obligation to specify the salary range in job advertisements, together with any relevant collective bargaining provisions used to determine the remuneration applicable to the vacant position.

Pay Transparency During Employment 

1. Reporting of Indicators

JUNE 2026 REVISIONS: The revised law removes the requirement to report a fixed set of seven indicators relating to pay gaps between women and men, leaving the number and content of indicators to be determined by future implementing decree. However, the reporting threshold has not changed. Companies with at least 50 employees, which will be required to publish annually on the yet-to-be-determined set of indicators. 

These indicators will replace the current gender equality index. The applicable workforce threshold will be assessed once the company has reached the relevant headcount for 12 consecutive months, under conditions to be determined by decree. The precise nature of the indicators, as well as the remuneration components taken into account for their calculation, will also be defined by decree. 

There will be focus on a specific indicator that will assess pay gaps between women and men within categories grouping employees performing equal work or work of equal value (“pay gap indicator”). This specific pay gap indicator remains a distinct reporting requirement.

• In companies with 50 to 249 employees, this pay gap indicator will be reported every three years and will not be made public, but will be communicated both to the CSE and to employees when its disclosure cannot lead, directly or indirectly, to the identification of an individual employee’s pay. To the contrary, it will be provided only to the CSE. 
• In companies with 50 to 99 employees, this pay gap indicator may be waived through a company-level agreement.
• The June 2026 revisions state that the provisions relating to the publication of the gender pay gap for work of equal value will enter into force on a date set by decree and:
  • For companies with 50 to 99 employees: no later than six years after the promulgation of the law; 
  • For companies with 100 to 149 employees: no later than three years after the promulgation of the law; 
  • For companies with at least 149 employees: the reporting must take place the year following a date set by decree and, in any case, no later than one year after the promulgation of the law. 

The other indicators will be published on the Ministry’s website and may also be made available on the company’s own website.

Different obligations depending on the company's workforce

Companies with 50 to 99 employees:

• The CSE is informed and consulted on the data used for the calculation, the calculation method, and the results of each indicator.

UPDATE JUNE 2026: When the indicator on pay gaps between women and men by category of employees performing equal work or work of equal value shows a pay gap above a percentage set by decree (probably 5% as provided by the Directive) and where such gap is not justified by objective, gender-neutral criteria,the employer must initiate negotiations with the CSE on professional equality in order to address the pay gap. 

Companies with 100+ employees:

• The CSE is informed and consulted on the data used for the calculation, the calculation method, and the results of each indicator.
• The CSE’s opinion is sent to the administrative authority under conditions to be set by decree.
• Employees, the CSE, or union representatives may request clarifications and justifications regarding the outcome of the pay gap indicator; the employer must provide a reasoned response and inform the CSE. JUNE 2026 REVISION: The employer’s response is no longer subject to further regulation that may come from an adoption of a decree; thereby affording employers greater flexibility in preparing their response.
• If the request comes from an employee, the employer may refuse to disclose the information when disclosure is likely to lead, directly or indirectly, to disclosure of information about an employee’s pay. 
• JUNE 2026 REVISION: the employer is not required to respond to abusive requests for clarification and justification (described above), in particular where the requests are excessive in number, repetitive, or systematic in nature. 
• When the indicator on pay gaps between women and men by category of employees performing equal work or work of equal value shows a pay gap above a percentage set by decree (probably 5% as provided by the Directive), the employer must justify those gaps using objective, gender-neutral criteria and consult the CSE on those justifications. The CSE’s opinion is sent to the administrative authority. In the total or partial absence of justifications, the employer must remedy the gap within six (6) months after the first reporting, by collective agreement or unilateral decision. The employer must then report the indicator again within six (6) months after the first reporting, with prior information and consultation of the CSE and transmission of the opinion to the administrative authority. If at least one average pay gap between women and men persists within an employee category above a percentage set by decree and is not justified by gender-neutral criteria, the employer must initiate negotiations on corrective measures or adopt an action plan. This negotiation is preceded by a report (joint assessment). The agreement or action plan is filed with the administrative authority, which may issue observations. The agreement is valid for three (3) years, unless it provides for a shorter duration.

2. Employee Right to Information

Employees may request, in writing, details about their own pay or the average pay levels by sex for employees within the same category performing work of equal or equivalent value. 

JUNE 2026 REVISIONS: Employers must respond in writing within a timeframe set by decree. Employers may be exempt where two conditions are met: (i) the employee’s category includes fewer than a minimum number of employees (defined by decree) and (ii) where disclosure is likely to result, directly or indirectly, in the revelation of information about the remuneration of an identifiable employee due to an insufficient number of employees in the category of the employee making the request 

Additionally, employers are required to inform employees annually, by any means, of their right to request this information. The June revisions clarify the timing of when these obligations will take effect. They will take effect from the date the employer implements a system for categorizing employees performing work of equal value, or at the latest, on the date set by the decree specifying the entry into force of the provisions relating to the reporting of the indicator on the gender pay gap between women and men performing work of equal value.

3. Adjustments to the Burden of Proof

The draft law significantly strengthens the burden of proof in cases of alleged pay discrimination. 

Where an employer fails to comply with obligations related to pay transparency—such as the publication of pay gap indicators, consultation of CSE, respect for employees’ right to information, or disclosure of pay policies—the entire burden of proof falls on the employer, and the employee is not required to present elements suggesting discrimination.

In general, in litigation concerning alleged breaches of these provisions, an employee or job applicant may present factual evidence suggesting discrimination. This can include the pay or remuneration components of a previously hired employee within the same company, or the remuneration of employees in other companies where comparable pay conditions are established by a multi-company collective agreement, a group agreement, or an agreement within an economic and social unit (UES). 

Once such evidence is presented, the employer must demonstrate that any differences in pay are justified by objective, non-discriminatory factors. 

JUNE 2026 REVISIONS: Where no actual comparator can be identified and the comparative method cannot be used, the employee may rely on any other form of evidence to substantiate the alleged discrimination, including statistical data.

4. Ban on Contractual Clauses Prohibiting Disclosure of Pay Information

As per the provisions of the Directive, the draft law prohibits contractual clauses that prevent employees from disclosing information relating to their remuneration. 

Specific Penalties

The draft law also introduces specific sanctions for non-compliance with the new pay transparency obligations. 

Companies that fail to comply with the requirements relating to the reporting of pay gap indicators or the implementation of corrective measures may be subject to a financial penalty of up to 1% of total remuneration and earnings, within the meaning of Article L.242-1 of the French Social Security Code. In certain cases, the administrative authority may first issue a formal notice requiring the employer to remedy the identified breach before imposing the penalty. 

In addition, a separate fine of up to €450 may be imposed for failure to comply with other obligations introduced by the reform, such as providing the CSE with pay gap information by employee category, respecting employees’ right to information, or ensuring that candidates receive the required pay information during the recruitment process.

JUNE 2026 REVISIONS: The June revisions introduce a new criminal penalty if an employer is found to have breached Articles L. 1142-1 and L. 1142-2 of the French Labour Code relating to sex-based discrimination. Where such a breach is committed by the same employer against multiple individuals, it is punishable by up to two years’ imprisonment (for the legal representative or any person with decision-making power over remuneration or granted by a Power of Attorney) and a €7,500 fine. For the purposes of recidivism, offences under Article L. 1146-1 of the Labour Code and Articles 225-1 and 225-2 of the Penal Code relating to discrimination are treated as a single offence.

In addition, the draft law provides that companies with at least 100 employees may be excluded from public procurement procedures and concession contracts where they have been sanctioned for failing to report required indicators or for failing to submit collective agreements, action plans, or reports relating to the reduction of pay gaps.

Despite the hint of additional time to prepare in France, we recommend that employers do not slow down compliance efforts regarding objective categorization of employees and auditing salary schemes.