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France Misses the June 7, 2026 Deadline for Transposing the EU Pay Transparency Directive. So what now ?
France did not meet the June 7, 2026 deadline for transposing the EU Pay Transparency Directive. However, the government submitted a new version of the draft law to Labor Unions on June 5, 2026.
Although the text is still far from being adopted, employees could already seek to rely on the direct effect of EU Directive 2023/970.
Key Elements of the Draft Law
A First Definition of « Work of Equal Value »
The draft law aim at creating a right for employees to request from their employer the average pay levels, broken down by gender, for categories of workers performing the same or equivalent work. Article 6 of the text provides a clear definition of this concept : « work of equal value covers a comparable set of objective, non-gender-based criteria, including professional knowledge recognized by a title, diploma, or professional practice ; skills derived from acquired experience ; non-technical competencies ; responsibilities ; working conditions ; and physical or mental workload ».
The draft also maintains the requirement to classify employees performing work of equal value through a company-level agreement. It grants employers more flexibility as, in the event that company-level negotiations fail, the employer would be able to choose between :
- applying the classification, where applicable, provided under the relevant sector-level collective agreement, through a unilateral decision valid for a period of three years ; or
- establishing its own classification through a unilateral decision, following consultation with the Works Council (CSE).
Application of the sector-level collective agreement would therefore no longer be mandatory. The employer’s unilateral decision would likewise remain in force for a period of three years.
Safeguards on the Right to Pay Information
Article 1 of the draft law introduces safeguards to prevent abuse of the information right. Employers may refuse to respond to a request if disclosing the information could « directly or indirectly reveal the remuneration of an identifiable employee due to an insufficient number of employees in the relevant category ».
For companies with more than 100 employees, employers would « not be required to respond to abusive requests, particularly those that are excessive, systematic, or repetitive ».
Phased Implementation Based on Company Size
As part of the reform of the Gender Equality Index, the obligation to declare the pay gap indicator would be delayed for smaller companies. A decree will set the exact dates, with the following deadlines :
- Three years after enactment for companies with 100 to 149 employees ;
- Six years after enactment for companies with 50 to 99 employees.
Stricter Sanctions
In the event of a breach, the employer will be subject to an administrative fine, which will either be proportional to the payroll or set as a fixed amount, depending on the seriousness of the infringement. In addition, the draft law tightens the repressive framework. The penalties are doubled if multiple employees are affected : non-compliance with gender equality rules would be punishable by two years of imprisonment and a fine of €7,500.
Direct Effect of the Directive : A Reason to Act Now
Some of the EU directive’s provisions are sufficiently precise and unconditional to have direct effect. As France did not meet the deadline decided by the European Commission, employees could theoretically already request the application of its rules, particularly regarding pay transparency and non-discrimination.
Employers must act now to prepare for these new obligations. To do so, it is highly recommended to :
- Audit the current compensation policy, identifying any pay gaps as well as their root causes, and assessing the financial implications ;
- Train HR teams and managers ;
- Define the categories of workers performing the same work or work of equal value ;
- Establish pay scales by worker category, including all components of compensation and objective, gender-neutral criteria ;
- Set up the process for determining pay at the time of hiring ;
- Develop key messaging around the new compensation policy.