OD FLASH | Salary Transparency: Bill to Transpose the Directive – New Administrative Penalties 5/5

On March 6, 2026, the Ministry of Labor transmitted to national union and employer’s associations representatives and members of parliament a first draft of the bill to transpose Directive (EU) No. 2023/970 of May 10, 2023, on pay transparency into French law.  According to the latest information provided by the Ministry, the draft bill is expected to be presented to Parliament at the end of May, following mandatory consultations with the national committees for negotiation and evaluation of standards in the private and public sectors, and referral to the Council of State.

This text supplements the new obligations imposed on employers with a strengthened system of administrative sanctions, designed to ensure the effectiveness of the measure. The directive requires Member States to provide for effective, proportionate, and dissuasive sanctions, including fines and taking into account repeated violations.

This update (5/5) concludes the series on the main measures provided for in this draft law.

The bill creates a new Section 3 on administrative sanctions, comprising Articles L. 1142-10 through L. 1142-12 of the Labor Code.

Prior formal notice in certain cases:

• Before imposing certain penalties, the administrative authority must issue a formal notice to the employer to remedy the situation within a timeframe determined based on the nature of the violation and the circumstances observed within the company.

• This prior formal notice would apply in particular in the event of:
• failure to report indicators, or erroneous or incomplete reporting of one or more indicators;
• failure to file the report referred to in Article L. 1142-8-6, the purpose of which is to identify and analyze the reasons for pay and status disparities between women and men and to serve as a basis for negotiation or, failing that, for an action plan intended to remedy them, in certain cases provided for by the text.

Primary administrative penalty:

• The amount of this penalty could reach 1% of the wages and earnings paid to employees or people treated as employees during the periods in which the company fails to comply with the applicable obligations.
• This penalty would apply in the event of breaches of the obligations set forth in Articles L. 1142-11-1 through L. 1142-11-3.
• Regarding the reporting of indicators (Art. L. 1142-11-1):
  • failure to report;
  • incorrect or incomplete reporting;
  • failure to consult the CSE in advance when required;
  • failure to submit the CSE’s opinion to the administrative authority.

• With regard to obligations concerning the reduction of pay gaps (Art. L. 1142-11-2):
  • failure to inform the CSE;
  • failure to consult the CSE in advance;
  • failure to file, or filing of an erroneous or incomplete report as provided for in Article L. 1142-8-5;
  • Failure to submit certain documents or opinions required by law to the administrative authority.

• With regard to obligations relating to the negotiation of a collective agreement or, failing that, the adoption of an action plan (Art. L. 1142-11-3):
  • failure to file a collective agreement or, failing that, an action plan within the required time limits;
  • failure to file the report identifying and analyzing pay and status disparities between women and men;
  • Failure to inform the Social and Economic Committee (CSE) about the update to the report.

• An employer may be subject to only one penalty per set of obligations during a single reporting period, even in the event of multiple violations under the same provision.

• This amount may be increased to 2% if the company has already been subject, within the five years preceding the finding of the violation, to a penalty based on the same provisions or on Article L. 1142-12.

Specific administrative penalty of up to 450 euros:

• The bill would also create a separate administrative penalty of up to 450 euros for breaches of certain targeted obligations (Article L. 1142-12).

• This penalty could be imposed, in particular, in the event of a failure:
  • failure to provide employees and the Social and Economic Committee (CSE) with the results of indicator No. 7 regarding the pay gap by job category;
  • failure to provide employees with annual information regarding their right to access compensation data;
  • the obligation to provide a detailed response to the request provided for in Article L. 1142-8-1;
  • making information accessible to job applicants and workers with disabilities;
  • the prohibition on employers requesting a candidate’s compensation history;
  • the obligation to inform the candidate of the compensation range and applicable collective bargaining provisions;
  • the provision of compensation criteria to employees.

• The amount of this penalty could also be doubled in the event of a repeat offense within five years.

Appeal: The bill provides that the employer may challenge the penalty decision before the administrative court, to the exclusion of any internal appeal.

Effective Date:  The provisions regarding administrative sanctions would take effect on a date set by decree and no later than one year following the enactment of the law.