Index on Equal Remuneration Between Women and Men

New Order or Decree

Pursuant to Decree No. 2019-382, dated April 29, 2019, each company over 50 employees must calculate the salary gaps between women and men and publish the results on their website. When the results exceed a predefined threshold, the employer must take corrective measures either through a bargaining agreement or through the implementation of unilateral decision to avoid a financial penalty. Companies in noncompliance will face a formal notice to remedy the situation within a set deadline. The results on payment gaps between women and men are also to be included in the company’s central database.

Posted Workers: New Rules and Penalties for Noncompliance

New Order or Decree

Decree No. 2019-555, dated June 4, 2019, sets forth the rules and obligations applicable to posted workers and their employers, defining the term “illegal employment” and the corresponding penalties and controls, and outlining the required content for the relevant declaration. As of July 1, 2019, the declaration must mention the name of the company’s representative based on national territory, in charge of overseeing the posted worker during the entire period. Some industries are exempted of such obligation if they resort to posted workers for a short period of time or for an occasional event (e.g., artists, sportsmen, apprentices on temporary mobility, seminar participants, etc.). The French labor administration may penalize noncompliant employers or ban them from being able to post workers.

Difference in Treatment in CBA: No General Presumption of Justification

Precedential Decision by Judiciary or Regulatory Agency

Under French labor law, a difference in treatment arising between occupational categories within a collective bargaining agreement (CBA) is presumed to be justified because it has been negotiated and signed by the unions, who represented the rights and interests of employees. However, the French Supreme Court recently ruled that this presumption cannot be applied if the difference in treatment arises between employees on the sole basis of their presence on a designated workspace, and that the professional, economical and familial impacts of a transfer of business need to be considered. This is an extension of a previous precedent, set in 2015, when the French Supreme Court first ruled over a case on difference of treatment within a CBA between occupational categories.

Variable Compensation Cannot Be Based on Employer’s Sole Will

Precedential Decision by Judiciary or Regulatory Agency

Under French law, compensation, alongside work performance and subordinate relationship, is one of the key elements of an employment relationship. It is a constant precedent that neither one of the parties, especially the employer, can make unilateral decisions affecting the contractual compensation. On that basis, the French Supreme Court recently ruled that an employer unlawfully unilaterally determined a variable compensation calculated on a fixed percentage fee.