1. Pay transparency: European directive postponed
Were you expecting concrete obligations on pay transparency by June 2026? Not this time — at least for now.
European DirectiveNo. 2023/970, which was to be transposed into French law by7 June 2026at the latest, is subject to a postponement announced by the Directorate General for Labour (DGT). This directive aimed to guaranteeequal pay between women and men, requiring businesses to measure and reduce unjustified pay gaps, and to communicate certain information to employees and job applicants.
The precise timetable for the postponement remains to be defined. A deadline around2027is mentioned, notably in connection with theProfessional Equality Index.
Note:A parliamentary question was put to the Ministry of Labour on this subject on 19 February 2026. It had not yet received a reply at the time of publication.
This postponement creates uncertainty for businesses, which struggle to anticipate the investment needed to comply. It is nevertheless better to anticipate now by auditing your pay practices rather than waiting until the last minute.
2. Self-employment alongside employment: Court of Cassation rules
Do your employees have the right to run a self-employed business alongside their employment contract? The answer is nuanced — and a recent Court of Cassation decision illustrates this perfectly.
In aruling of 14 January 2026, the Court of Cassation recalls that combining employment and self-employment is possiblesubject to the duty of loyalty. So far, nothing new. But the case adds an important clarification.
The facts
An employed joiner had set up, alongside his job, a self-employed business in the same sector (joinery and PVC). His employer dismissed him forgross misconduct, considering it unfair competition.
The Court of Appeal had found for the employee: he was not subject to any non-compete clause, the activity was marginal (low turnover), carried out outside working hours and without using company equipment.
The Court of Cassation decision
The highest judgesoverturned this reasoning. In their view, simply creating and running acompeting activityas a self-employed person alongside employment constitutes gross misconduct in itself — making continuation of the employment contract impossible.
It does not matter that the activity was marginal, carried out outside working hours, or that the employee did not use company equipment.
In short:An employee who runs a competing activity to that of their employer, however limited, may be dismissed for gross misconduct. The marginality criterion is not enough to erase disloyalty.
What this means for you:If you discover that an employee has set up a competing activity, you may start disciplinary proceedings up to dismissal for gross misconduct — even without a non-compete clause in the contract.
3. Public transport costs: 75% exemption renewed
Good news for employers who pay for employees' travel passes: the favourable regime is maintained.
In principle, payment of public transport season tickets is exempt from social contributions up to50%. Since 2022, successive finance laws have raised this limit to75%.
In December 2025, pending a 2026 finance law, the BOSS (Official Social Security Bulletin) introduced a temporary tolerance. Since21 February 2026, the law has officially renewed the75% derogatory cap.
What this means in practice:
- The portion paid up to 75% of the subscription cost isexempt from social contributions.
- If you pay more than 75%, the excess must beadded back to the contribution base.
- Exceeding this threshold is not prohibited, but the tax advantage applies only to the portion within the limit.
Key takeaways
Here are the 3 essentials for February 2026:
- Pay transparency: the European directive is postponed, probably to 2027. Start auditing your pay policies now.
- Competing self-employment: an employee who sets up a competing activity commits gross misconduct, even without a non-compete clause and even if the activity is marginal.
- Public transport: the 75% exemption has been renewed by law since 21 February 2026.
Need support to bring your HR management into compliance? Do not hesitate to contact our firm.