Articles
On 7 June 2026, all EU Member States should have transposed the European Pay Transparency Directive (the “Directive”), which came into force on 6 June 2023, into local law. The aim of the Directive is to ensure equal pay for equal work or work of equal value and close the existing gender pay gap.
In France, the transposition will not lead to a revolution since a law currently in force already requires companies of 50 employees or more to improve equal pay between men and women through a gender pay index, appraised annually. However, those provisions of the Directive which will need to be transposed in France in June 2026 go far beyond existing French law, in terms of scope, measures and sanctions.
France: Employment & Benefits – 2024 Highlights and 2025 Outlook
Mayer Brown | Nov 2024
Compulsory profit-sharing has been required of companies with 50 or more employees since 2020. The new five-year trial mandate applies to companies that meet all three of the characteristics below:
- Are established as a legal entity.
- Have 11 to 49 employees.
- Have an after-tax net profit of at least 1% of turnover for the three previous consecutive years (the lookback period commences in December 2024).
France Introduces Profit Sharing Mandate for Smaller Employers
Lockton | Aug 2024
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