FRANCE Trends and Developments Contributed by: Eva Kopelman, Axipiter
Internal HR Investigations, Pay Transparency and Digitalisation Internal HR investigations are increasingly recognised as a strategic tool for managing risks and ensuring compliance at both national and international lev - els. Companies face complex challenges, including allegations of harassment, discrimination, compli - ance breaches, and pay inequities. The landscape of internal investigations is evolving due to regulatory changes, including the EU Pay Transparency Directive (EU 2023/970), and technological developments, such as digital investigation tools and AI-assisted analytics. In France, internal investigations are shaped not only by general labour law protections but also by specific obligations on reporting, equality, and employee con - sultation. Employers must navigate both traditional HR risks and challenging issues, including pay equity, hybrid work arrangements, and digital oversight. They also face heightened responsibilities regarding the protection of personal data, as internal investigations frequently involve sensitive employee information, emails, and HR records. Ensuring GDPR compliance has thus become a central consideration, balancing investigative needs with legal obligations on data pri - vacy. Effectively handled internal investigations serve as both a risk management mechanism and a strategic tool, helping companies protect employees, ensure compliance, safeguard personal data, and reinforce trust and corporate reputation. This section highlights three complementary trends that are reshaping internal HR investigations: (i) the impact of pay transparency obligations as a trigger for investigations; (ii) the digitalisation of investigative processes; and (iii) data privacy and GDPR compli - ance, reflecting broader shifts in corporate govern - ance and HR management. Pay transparency and internal investigations Regulatory context The EU Pay Transparency Directive (EU 2023/970) aims to reduce gender pay gaps and ensure equitable remuneration practices across member states.
In France, the directive is scheduled to be transposed by 7 June 2026. Once implemented, companies will be required to provide salary information upon employee request, conduct regular pay audits, and launch measures to address systemic disparities. Although the formal obligations focus on reporting and documentation, in practice, pay transparency requests may trigger internal investigations like those conducted for harassment, discrimination, or compli - ance issues. Employers must collect and analyse payroll data, verify pay practices, and document outcomes. These processes will function as structured investigations, linking regulatory compliance to operational govern - ance. Pay transparency-related investigations serve several purposes: • they ensure compliance with future EU and French laws; • detect systemic pay inequities; • prevent disputes and mitigate reputational risk; and • strengthen employee confidence in fair treatment. Recent developments and practices • Right to information as a trigger: Under the future framework introduced by the Pay Transparency Directive, employees will have the right to request information on salary levels for comparable roles, including base salary, variable compensation, and benefits. In practice, each request may trigger a structured internal review to verify the accuracy and fairness of pay practices. This review func - tions as an investigative exercise, including the verification of job classifications, benchmarking roles across departments, and documenting the rationale behind compensation decisions. The requirement for timely and accurate responses also pushes companies to establish clearer internal protocols, ensuring consistency and defensibility in the information provided to employees or their representatives. • Data collection and analysis: Pay transparency- related investigations will require the collection and analysis of payroll data, bonus schemes and
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