Employment Law Updates for 2026: France
Looking ahead to 2026, France is preparing a series of labouw law updates that place particular focusses on family- related entitlements, pay transparency, and the financial impact of dismissals. However, some initiatives remain at draft stage, employers should start thinking about that their potential impact when reviewing workforce plans and employment policies.
In this blog, we explore the key aspects of these developments and what they mean for employers in everyday practice. We, as Parakar, can support your organization in dealing with these changes, complying with regulations, and translating new requirements into manageable, day-to-day processes.
Transparancy in Wages and Equal Pay Obligations
By the 7th of June 2026, France must implement the EU Pay Transparency Directive into national law. This introduces a big change in how wage data is determined and verified. The introduction of this measure will reshape recruitment practices, requiring employers to be upfront about pay ranges in job postings and preventing them from asking candidates to disclose their prior salary history.
Under the new transparency rules, salary information will no longer be a black box. Employees will have the right to know not only their own salary level, but also the average figures broken down by gender for comparable positions. Employers will also have to clearly explain how salaries are set, including the criteria used for compensation decisions and job classifications. In addition, reporting requirements on gender pay gaps will be broadened and the current equality index framework will be strengthened.
A major change is coming in terms of enforcement: in cases of pay discrimination, employers will increasingly be required to prove that their pay practices are fair and objective. When pay structures are unclear or applied inconsistently, the legal risk increases.
So, it is time to get organized. Employers need to start testing the resilience of their pay structures, identifying and closing potential gaps, and ensuring that their internal systems are ready for greater transparency. Taking the lead now will make it much easier to comply with the new rules when they come into force.
Complimentary Birth and Adoption leave
A new family-friendly leave option may soon be added. Legislation expected to be introduced in 2026 or early 2027 provides for an additional period of birth leave, giving parents up to two months extra on top of existing maternity, paternity, or adoption leave. This leave would be highly flexible: it could be taken at any time until the child’s third birthday and divided between the parents, either jointly or in turns.
The good news for employers is that the leave would be funded by the state, with compensation of 70% of net salary for the first month and 60% for the second month. But even without direct wage costs, longer and more flexible absences will have implications for workforce planning.
For employers, the message is clear: keep an eye on the legislative process and start thinking ahead. By making plans now for extended parental leave, you can minimize disruption and ensure that teams continue to receive support when these changes take effect.
Increased costs of mutual termination contracts
Starting January 1st, 2026, employers who use mutual termination agreements (rupture conventionnelle homologuée) could face an increase in costs. If the draft law is approved, the employer’s contribution to the compensation paid will rise from 30% to 40%, which will make this exit option much more expensive.
Although no immediate action is required, it is worth taking this potential change into account in future planning. Higher contributions could have a noticeable effect on restructuring budgets and employee departure strategies. Employers may therefore want to reconsider whether mutual termination agreements remain a financially viable option, or whether alternative termination routes may offer a more cost-effective solution in the future.
How Parakar can support
With major employment law changes on the horizon in France, Parakar helps employers stay compliant while keeping HR operations efficient and practical. We support quick and compliant hiring by managing employment contracts, onboarding, and payroll in line with French labour law, collective agreements, and upcoming pay transparency requirements, without the need to set up a local entity.
For companies employing remote workers across France, Parakar provides end-to-end HR management, covering onboarding, payroll, tax compliance, and ongoing administration. This ensures your workforce remains compliant as new rules around pay transparency and family-related leave come into force.
We also offer full HR administration support, handling complex requirements such as salary structures, reporting obligations, employee benefits, and social security contributions. When sensitive employee relations issues arise, whether disputes, restructurings, or terminations, our experts provide guidance aligned with French legal and collective bargaining frameworks. With Parakar as your partner, you can confidently navigate regulatory change while focusing on sustainable business growth.
Get in touch with Parakar today to ensure your business is fully equipped to handle these important responsibilities, allowing you to focus on what truly matters, supporting your employees.
