French Labour Law

Paid Leave and Sick Leave: Impacts of the April 22, 2024 Law on Employers

DAIRIA Law · 2026-06-09 · 5 min

Paid Leave and Sick Leave: Impacts of the April 22, 2024 Law on Employers

Law No. 2024-364 of April 22, 2024, has resolved an anomaly in French law by aligning our legislation with European jurisprudence. From now on, an employee on sick leave continues to accrue paid leave, even when the leave is not work-related. For employers, this reform entails concrete changes in leave management, employee information, and handling retroactivity.

What the Law States: The New Accrual Principle

Previously, only work-related sick leaves (occupational accidents, occupational diseases) entitled employees to accrue paid leave within a one-year limit. Sick leave for ordinary illness granted no rights. This distinction was deemed contrary to European Directive 2003/88/EC by the Court of Justice of the European Union and subsequently by the French Court of Cassation in its rulings on September 13, 2023.

The law of April 22, 2024, establishes a dual accrual system:

  • For non-work-related sick leaves: Employees accrue 2 paid leave days per month of absence, amounting to 24 paid leave days per year (4 weeks). This is less than the usual 2.5 days (30 paid leave days, or 5 weeks) accrued during actual working periods.

  • For work-related sick leaves: Employees accrue 2.5 paid leave days per month, with no duration limit (the one-year limit has been removed). They thus earn the same rights as if they were working.

The Retroactive Effect: How to Manage It?

The most delicate aspect of this reform is its retroactive application. The law stipulates that employees can claim unpaid paid leave for periods of sick leave dating back to December 1, 2009. However, this right is subject to a two-year time limit, starting from the law’s entry into force, lasting until April 23, 2026.

In practice, your current and former employees have until April 23, 2026, to request the benefit of paid leave for past sick leaves. After this date, the right expires.

Numerical Example

An employee was on ordinary sick leave for 8 months in 2022. Under the previous regime, they accrued no paid leave during this period. With retroactivity, they can claim 8 x 2 = 16 paid leave days. If they are still employed, these days will be added to their leave balance. If they have left the company, they can request a compensatory indemnity.

Employer’s Information Obligation

The law imposes a strengthened information obligation on the employer. Within one month following the employee’s return from sick leave, you must inform them by any means that provides a certain date:

  • Of the number of paid leave days they have available;
  • Of the deadline by which these leave days must be taken;
  • This deadline for taking leave is 15 months from the date of information.

If you fail to provide this information, the deadline for deferring leave does not commence. The employee retains the benefit of these days indefinitely, which could lead to problematic accumulation. Establish a standard letter or an automatic email for returning from sick leave.

Deferring Leave: A New 15-Month Period

When an employee has not been able to take their paid leave due to sick leave, such leave is deferred. The law establishes a 15-month deferral period starting from the date the employee is informed of their rights. This period replaces former jurisprudential rules that could lead to unlimited deferral.

If the sick leave lasts longer than a year, the 15-month deferral period starts at the end of the accrual period during which the leave was accrued. For example, for leave accrued between June 1, 2025, and May 31, 2026, the deferral expires on August 31, 2027 (15 months after May 31, 2026), provided the employee was informed.

Financial Impact on Employers: How to Make Provisions?

This reform entails a real cost for employers, particularly due to retroactivity. The provisions must account for several parameters:

  • For current employees: Identify all sick leaves since December 1, 2009, and calculate the theoretically accrued leave days. Multiply by the employee’s current daily rate. This represents your maximum exposure.

  • For former employees: The risk pertains to a compensatory indemnity for unpaid leave. This is more challenging to quantify as it depends on the number of former employees who will make a claim before April 23, 2026.

In practice, not all companies will be exposed in the same way. Sectors with high absenteeism rates (industry, healthcare, retail) will be proportionately more impacted than tertiary sectors with few long-term sick leaves.

5 Concrete Actions to Ensure Compliance

  1. Update your payroll software to integrate the new accrual rules (2 days/month for ordinary illness, 2.5 days/month for work-related accidents/occupational illnesses with no duration limits).

  2. Create a standard information letter to be sent to the employee within a month of their return from sick leave. This letter should specify the number of accrued days and the deadline for using them.

  3. Audit your leave balances to identify employees who have taken sick leave since 2009 and calculate their potential retroactive rights.

  4. Make provisions for the cost in your accounts, differentiating between the certain cost (current employees) and the potential cost (former employees).

  5. Inform your managers about the new rules so that they can plan the return of employees from sick leave without disrupting teams.

DAIRIA’s Advice: The date of April 23, 2026, is a cutoff for retroactivity. Review your workforce now. DAIRIA can assist you in identifying affected employees, calculating the days owed, and generating compliance information letters.

📚 For Further Reading

← All insights