France: 2025, Looking Ahead

The unstable political situation in France makes it difficult to anticipate future legislative changes in 2025. Following the fall of the government formed under former Prime Minister Michel Barnier, a new government was announced on 23 December 2024 under the new Prime Minister, François Bayrou. Given that the new government still does not hold a majority in Parliament, whether it will be able to survive will depend on its capacity to pass a new budget through Parliament in the next few weeks.

International companies operating in France should therefore ensure regular checks for new developments.

Labour measures announced to date by the new government

• The Prime Minister has stated that he is willing to reopen discussions on the pension reforms adopted in 2024. This could include reviewing the new statutory retirement age, i.e., 64 years old.
• Financial aid for hiring apprentices should be renewed in 2025 but scaled back. Companies with fewer than 250 employees should be able to claim €5,000 (compared with €6,000 previously). Companies with higher headcounts should be able to continue to be able to claim €2,000.
• The national collective agreement on unemployment benefits signed on 15 November 2023 by the trade unions and employer organizations will be applicable from January 1^st 2025 with certain provisions only taking effect during 2025 (e.g. on April 1^st, the extension of coverage for jobseekers aged over 55; on May 1^st, 0.05% reduction in the unemployment contribution; and on September 1^st, changes to the bonus-malus system: increase or decrease of unemployment contributions due by companies depending on the number of employment contracts terminated).

Implementation of EU Directives

• CSRD: transposed into French law in December 2023, large French companies are due to publish their first sustainability reports in accordance with the CSRD requirements in 2025. Discussions are underway with regards to modifying the current French law and, namely to repeal the criminal sanctions which currently apply in case of non-compliance with certain CSRD requirements.
• Platform workers: France has until December 2^nd 2026 to transpose Directive 2024/2831 of 23 October 2024 on platform workers into French law. No draft transposition text has been announced to date.
• Pay transparency: France has until June 7^th 2026 to transpose Directive 2023/970 of 10 May 2023 on pay transparency. A draft transposition text is expected in 2025.