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New Legislation | Labor Law, Employer Rates & Investigations in France 2025

Published on : 09/04/2025 09 April Apr 04 2025
Newsletter / New legislation
Newsletter

New French DDADUE Law: What Companies Need to Know in 2025

The so-called "DDADUE" law (Provisions for the Adaptation to European Union Law), definitively adopted by the Senate on April 3, 2025, aims to incorporate several developments in European law into French legislation. It notably establishes a harmonized procedure for class actions, marking a significant step forward in collective justice. This harmonization seeks to strengthen consumer rights and simplify proceedings brought by multiple plaintiffs against the same entity, aligning French law with European standards on collective redress.
Another key component of the law focuses on enhancing France's appeal to foreign talent. The text simplifies access to the EU Blue Card for highly qualified workers from third countries. This measure aims to address skill shortages in strategic sectors and promote professional mobility within the European Union. By streamlining the process for obtaining this residence permit, France seeks to boost its competitiveness and international openness.
Finally, the DDADUE law introduces a two-year postponement of the non-financial reporting obligation for certain companies, as part of the implementation of the Corporate Sustainability Reporting Directive (CSRD). This additional time provides affected businesses with flexibility to adapt to the heightened requirements regarding environmental, social, and governance (ESG) transparency. It represents a compromise between the EU's sustainability ambitions and the operational realities faced by French companies.

Unemployment Insurance: New Agreement and Employer Rate Cut from May 2025

An order published in the Official Journal on December 20, 2024, officially validates the unemployment insurance agreement and its annexes, confirming new compensation rules negotiated by labor partners, with the exception of provisions for first-time job seekers and cross-border workers.

The agreement came into effect on January 1, 2025, for four years, though most changes apply from April 1, 2025, due to their operational impact on France Travail (French State Unemployment Fund). The reduction in employer contributions will take effect on May 1, 2025. The bonus-malus system is extended through August 31.

Key measures include:
  • Decrease in benefit reductions for high earners starting at age 55 (instead of 57).
  • To resume benefits after quitting a new job, the new job must last at least four months (up from three).
  • Due to the increase in the legal retirement age from 62 to 64 (2023 reform), the specific rules for seniors will also shift by two years.
  • The temporary 0.05% unemployment insurance surcharge will be eliminated on May 1, 2025. The standard employer contribution rate will drop from 4.05% to 4%.

How to conduct internal investigations: 2025 guidance from the French Defender of Rights

When employers receive reports of discrimination, they are obligated to verify the validity, nature, and scope of the claims, often by launching internal investigations.

In a framework decision issued on February 5, 2025 (no. 2025-019), the French Defender of Rights issued recommendations to help employers conduct thorough, consistent internal investigations in cases of reported discrimination.
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