A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.
Top story: France’s new supplementary birth leave is now live, and employers cannot refuse it
France’s congé supplémentaire de naissance (supplementary birth leave) took effect on 1 July 2026, creating a significant new entitlement that applies to children born or adopted from 1 January 2026. Each parent may now take up to two months of additional paid leave on top of existing maternity, paternity and adoption leave. The leave is compensated by social security at 70% of net salary for the first month and 60% for the second.
The practical implications for employers are considerable. The leave cannot be refused provided the employee meets the statutory conditions and gives one month’s written notice. Employees on supplementary birth leave benefit from dismissal protection, except in cases of serious misconduct or circumstances unrelated to the leave. For SMEs already managing maternity and paternity absences, the additional entitlement means longer workforce gaps to plan around, particularly where both parents work for the same employer.
Transitional provisions apply to children born or adopted between 1 January and 30 June 2026: the nine-month window to take the leave runs from 1 July 2026 and may extend until 31 March 2027. Employees must have at least six months of social security affiliation and meet minimum activity or contribution thresholds to qualify.
What to do: French employers should update leave policies and employee handbooks to reflect the new entitlement, brief line managers on the notification and approval process, and adjust workforce planning to account for the possibility that both parents in a household may take up to two months each. Review payroll processes to ensure social security reimbursement flows are set up correctly.
Also developing
Poland: The amended Act on the State Labour Inspectorate took effect on 8 July, giving inspectors the power to reclassify civil law contracts (including B2B and personal service arrangements) as employment contracts without going to court. The process starts with a notice instructing the employer to remedy the breach; if ignored, the inspector may issue an immediately enforceable decision confirming an employment relationship. Penalties for labour law breaches have also increased, and inspections may now be conducted remotely. A 12-month transitional period allows employers to regularise misclassified contracts voluntarily without fines. Employers may also request non-binding interpretations on employment status, with protection from penalties if followed. What to do: Employers with contractors or B2B arrangements in Poland should audit those relationships now against employment-status criteria. The 12-month grace period is a window to correct genuine misclassifications before enforcement begins in earnest.
Finland: A wave of amendments to the Employment Contracts Act reached full force on 1 June, completing reforms that began on 1 January. Three changes stand out for SMEs. First, employers may now conclude a fixed-term contract for up to 12 months without a justified reason, provided no employment relationship existed between the parties in the preceding five years; either party may terminate such a contract after six months. Second, the statutory layoff notice period dropped from 14 to seven days (collective agreements may still set a longer period). Third, employers with fewer than 50 employees are no longer required to offer redundant staff the same or similar work for up to six months after termination. The January reforms had already lowered the individual dismissal threshold from “proper and weighty reason” to “proper reason.” What to do: Finnish employers, particularly those under 50 employees, should review their HR processes for hiring, layoffs and dismissals against the updated rules. The combined effect of these changes gives smaller employers considerably more flexibility, but the procedural requirements remain in place.
Germany: The Federal Labour Court (BAG) ruled on 25 March (case 5 AZR 108/25) that blanket garden-leave clauses in employment contracts are invalid. Pre-formulated clauses granting an employer an unrestricted right to release an employee from work following termination are unenforceable unless the employer can demonstrate a “predominant, protectable interest” in each individual case. The BAG held that the right to continued employment is indirectly protected by fundamental rights and cannot be waived in advance through a standard contract term. The ruling forces employers to justify suspension on a case-by-case basis rather than relying on boilerplate language. What to do: German employers should review standard employment contract templates and remove blanket suspension clauses. Going forward, any decision to place a departing employee on garden leave must be individually justified and documented at the time of termination.
On the radar
UK zero-hours contracts consultation (previously covered): Closes 25 August 2026.
UK pay transparency consultation (previously covered): Closes 27 October 2026.
Germany digital payroll deadline (previously covered): All employers must keep social-insurance payroll documents in digital, GoBD-compliant form by 31 December 2026.
EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026.
Sources
- activpayroll: France expands parental leave with new supplementary birth leave entitlement
- Service-Public.fr: Supplementary birth leave, rules applicable to the employer
- RSM France: New additional birth leave, everything you need to know
- Transatlantic Law International: France, new supplementary birth leave comes into force on 1 July 2026
- TGC Corporate Lawyers: New powers of the National Labour Inspectorate from July 2026
- Dentons: Amendment to the Act on the National Labour Inspectorate in Poland
- DLA Piper: Finland reforms the Employment Contracts Act
- Borenius: New changes to Finnish employment legislation entered into force
- Finnish Government: Legislative changes to make fixed-term employment contracts more flexible
- Ogletree Deakins: German Federal Labor Court emphasises case-by-case assessment of release clauses
- L&E Global: Germany, general exemption clauses are invalid
Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.
