Implementation of the EU Pay Transparency Directive: The latest development in France

Why should I read this?

The EU Pay Transparency Directive (the Directive) is in force and EU Member States have until June 2026 to transpose it into national laws. All employers who employ people in the EU, regardless of their size or sector, will need to comply with the Directive once it is implemented locally. In many cases, compliance with the requirements will be a significant step change for employers, requiring detailed long-term planning and resource.

France has released a draft bill transposing the Directive. This briefing highlights the key features of the French draft bill.

What is the importance of the latest development?

The French draft bill includes several notable elements that go beyond the minimum requirements of the Directive and could have significant practical implications for employers operating in France.

At this stage, the bill has been submitted to social partners for consultation and has not yet been enacted into law. The Directive's transposition deadline is 7 June 2026, but it is unlikely that France will meet that deadline. Adoption of the final legislation is more realistically expected by the end of 2026.

To date, many of the draft local transposition laws have mirrored the requirements of the Directive. Importantly, the French approach may result in a possible broader trend of Member States deciding to make markedly different transposition choices. In that event, multinational organisations should expect significant country-by-country variations in how the Directive is implemented, and a centralised, one-size-fits-all compliance strategy would be unlikely to be sufficient.

What you need to know about the draft French bill?

The key features of the French draft bill are set out below. Please note that the provisions are in draft form only at this stage, and remain subject to change during the legislative process.

• a new reporting framework with seven indicators would replace the existing Professional Equality Index, including a specific indicator measuring the gender pay gap by category of workers performing work of equal value

• a lower threshold than the Directive. Reporting obligations would apply from 50 employees (e. a lower threshold than in the Directive). All seven indicators would be required to be reported annually, except for the "equal value" indicator which only needs to be reported every three years in companies with fewer than 250 employees

• an updated definition of "work of equal value", aligning French law with the Directive by adding "non-technical skills" (compétences non techniques) and "working conditions" (conditions de travail) to the existing statutory criteria, concepts already listed by the Directive but previously absent from the French Labour Code

• a France-specific three-tier categorisation hierarchy for determining “work of equal value”: employers must first seek company‑level agreement with trade unions; if agreement is not reached, categorisation will be in accordance with any sector‑level agreement; and only in the absence of both may the employer make a unilateral determination after consulting the works council. This layered approach significantly departs from the Directive’s more flexible framework and illustrates why categorisation will need to be managed separately in each Member State. Multinationals cannot assume that a single, EU‑wide job evaluation model will be compliant everywhere

• graduated obligations by company size. Companies with 50–99 employees must establish measures to address above-threshold gaps (such threshold to be determined by separate decree) through mandatory collective negotiation. Companies with 100+ employees would face stricter requirements: works council consultation, a right for employees to request justifications, corrective measures within six months, and a mandatory "joint assessment" if gaps persist

• new recruitment and employment transparency rules. Mandatory pay ranges in job postings, a ban on salary history enquiries, a ban on pay secrecy clauses, and a right for employees to request written information on average pay levels by gender within their category

• a detailed and dissuasive sanctions regime. Up to 1% of total payroll (2% for repeat offences) for reporting, consultation and negotiation failures; up to €450 per breach of individual information obligations (doubled for repeat offences); and possible exclusion from public procurement

• full reversal of the burden of proof in pay discrimination claims where the employer has failed to comply with its transparency obligations, unless the breach is "manifestly unintentional and minor"

What is likely to happen next?

As noted above, the bill has not yet been enacted. Adoption is expected by end of 2026 at the earliest. Once promulgated, most provisions will enter into force within one year. The following transitional arrangements are also contemplated in the draft bill:

• sector-level negotiations on worker categorisation must be opened before 31 December 2026
• companies with fewer than 150 employees have until 1 June 2030 to begin reporting the "equal value" indicator
• employee right to information enters into force on the date of the applicable categorisation agreement or unilateral decision, and no later than one year after promulgation

How we can help

Although still in draft form, the French bill's broad direction is clear. The combination of lower thresholds, strong employee representatives involvement, graduated corrective obligations and meaningful sanctions means that companies with operations in France should begin preparing now. More broadly, the French approach confirms that multinational organisations cannot fully rely on a single, pan-European compliance strategy: tailored, jurisdiction-by-jurisdiction planning will be essential.

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.

Look out for details of our pay transparency events, designed to support companies with their pay transparency readiness.