Labor Law Newsletter October 2026
Case-law section
Failure to Comply with the Occupational Physician’s Recommendations
The Court of Cassation now clarifies that the mere finding that an employer has failed to comply with the occupational physician’s recommendations regarding individual measures to modify, adapt, or redesign the workplace inevitably results in a violation of the safety and health of the affected employee and entitles the employee to compensation.
Ruling: Court of Cassation, September 9, 2026, No. 25-11.901
Dismissal for Repeated Absences Due to Health Reasons
A dismissal based on disruption to the company’s operations—caused by an employee’s repeated or prolonged absences, resulting in the need for a permanent replacement—does not, in and of itself, constitute substantial evidence suggesting the existence of discrimination based on health status. In the absence of justification by the employer for such organizational measures and for the replacement of the employee within a reasonable timeframe, the termination is not void but lacks a valid and serious cause.
Ruling: Court of Cassation, September 9, 2026, No. 25-14.356
A defect in consent invalidates a mutually agreed termination for a protected employee
The Council of State reiterates that the existence of harassment or discrimination does not preclude the signing of a mutually agreed termination, except when the employee is subjected to psychological abuse that vitiates their consent.
Ruling: Council of State, July 24, 2026, No. 505713
An exclusivity clause must be justified and proportionate
The Court of Cassation reiterated that an exclusivity clause infringes upon the freedom of employment and is valid only if it is essential to protecting the company’s legitimate interests, justified by the nature of the work to be performed, and proportionate to the intended purpose.
Ruling: Cass. Soc., September 9, 2026, No. 24-22.783
A part-time employment contract must specify the allocation of working hours
The Court of Cassation reiterated that, pursuant to Article L. 3123-6 of the Labor Code, a part-time employment contract must specify the distribution of working hours among the days of the week or the weeks of the month. Merely stating a total monthly workload without specifying the exact distribution of hours does not satisfy legal requirements and gives rise to a presumption of full-time employment.
Ruling: Cass. Soc., September 30, 2026, No. 25-18.800
Assessment of Economic Difficulties Based on a Significant Decline in Revenue
Pursuant to Article L. 1233-3, 1° of the Labor Code, the decline in the accounting indicator relating to revenue or orders during the specified period must be sufficiently significant to constitute economic difficulties justifying the termination.
Ruling: Court of Cassation, October 7, 2026, No. 25-10.107
Regulatory section
Work-Related Accidents/Occupational Diseases: The Cap on Daily Benefits Is Lowered
A decree dated September 30, 2026, sets the maximum annual earnings limit—which serves as the basis for calculating the daily benefits paid by the CPAM to victims of work-related accidents or occupational diseases (AT/MP)—at 0.226% of the annual Social Security ceiling, equivalent to 1.8 times the minimum wage (SMIC).
This limit is currently set at 0.834% of the annual Social Security ceiling.
Consequently, the maximum daily benefit paid in the event of a work-related accident or occupational disease will decrease from €240.49 to €65.17 for the first 28 days and from €320.66 to €86.90 starting on the 29th day of compensation.
This measure will automatically increase the amount of the wage supplement—whether statutory or contractual—paid by the employer to employees on sick leave due to a work-related accident or occupational disease.
The new rule applies to work-related accidents and occupational diseases occurring on or after November 1, 2026.
Text : Decree No. 2026-909 of September 30, 2026, establishing the maximum limit on annual compensation used as the basis for calculating daily benefits due for time off work resulting from a work-related accident or occupational disease, and regarding the procedure for determining the insured’s contribution
Fuel Allowance: The Exemption Threshold Is Raised to €1,000 Through December 31, 2026
The decree confirming the increase in the social security exemption threshold for the fuel allowance paid by employers for their employees’ commutes was finally published in the Official Journal on October 21, 2026. To help employees cope with rising fuel prices, the cap on the “fuel allowance” has been exceptionally raised to €1,000 per year per employee. It applies to all allowances paid from October 1 through December 31, 2026.
Text : Decree No. 2026-974 of October 20, 2026, establishing the caps provided for in subparagraph e of paragraph 4 of Section III of Article L. 136-1-1 of the Social Security Code
Workers’ Compensation and Occupational Disease Contribution Rates: A Single Rate at the Company Level for Establishments in the Same Risk Category Starting in 2027
A decree dated October 13, 2026, standardizes the determination of workers’ compensation and occupational disease contribution rates by risk group for companies under individual and mixed rating systems. These changes are effective beginning in 2027.
For the record, prior to this reform, a company subject to individual or mixed rating could opt to benefit from a single rate for all of its establishments belonging to the same risk category; and this calculation option was permanent for the risk category in question.
Starting in 2027, the single rate becomes mandatory: a company subject to individual or mixed rate determination (pursuant to Article D. 242-6-2) will automatically be subject to a single rate for the establishment or all of its establishments belonging to the same risk category (Labor Code, Art. D. 242-6-2, para. 2, as amended).
The classification of an establishment into a risk category continues to be based on the activity carried out, in accordance with a risk classification system and procedures established by order of the Minister responsible for social security (Labor Code, Art. D. 246-2-2).
At the same time, Article D. 242-6-4 of the Labor Code is being revised to reflect the changes taking effect in 2027. Thus, when a company is subject to a single rate, the individual gross rate is calculated based on the ratio of the risk value specific to the establishment—or to all of its establishments belonging to the same risk category—to the total payroll paid to the respective employees over the last three known years.
Text: Decree No. 2026-951 of October 13, 2026, extending the calculation of contribution rates for work-related accidents and occupational diseases to the company level
