Employer Mobility Plan: 50+ Employee Obligation, Sustainable Mobility Allowance and Annual Negotiation 2026

Quick answer. Any company in France with at least 50 employees on the same site, equipped with union representatives, must address home-to-work mobility during the mandatory annual negotiation (NAO). In the absence of an agreement on mobility measures, the employer must draw up an employer mobility plan (PDM). The plan is coordinated with the sustainable mobility allowance (FMD), whose social-contribution exemption ceiling is set at €600 per year (or €900 if combined with public transport reimbursement). This obligation stems from Article L.2242-17 (8°) of the French Labour Code and the Sustainable Mobility Act (LOM) of 24 December 2019.

The obligation to negotiate on mobility stems from the Sustainable Mobility Act (LOM) of 24 December 2019, which added home-to-work mobility to the topics of the mandatory annual negotiation. It applies to companies with at least 50 employees on the same site that have at least one union representative, within the negotiation on professional equality and quality of working life.

Unlike other obligations (gender equality, working hours), the mobility obligation is to negotiate the topic, not to conclude an agreement. In the absence of an agreement, the consequence is the obligation to draw up a mobility plan. This plan is not subject to external approval, but its content and updates must be documented.

Two key points structure 2026 practice:

• Article L.2242-17 (8°) of the French Labour Code defines the scope of mandatory negotiation.
• The sustainable mobility allowance (FMD), a financial complement, remains voluntary but tax-privileged, with strict exemption ceilings.

Headcount threshold#

The obligation targets private-sector employers whose average annual headcount reaches at least 50 employees on the same site (not consolidated at group level). This threshold is assessed on an annual average, not on a given date.

Additional requirement: union representatives#

Beyond 50 employees, the company must have at least one union representative. Where there is no union representative, the mandatory annual negotiation does not apply: the employer may then negotiate through a works council or a mandated employee, or launch a voluntary initiative. At Hayot Expertise, we recommend confirming the presence of a union representative and the scope of negotiation before acting.

Summary table#

Article L.2242-17 (8°) lists the measures to be discussed during negotiation. The company need not implement all of them, but it must examine them and justify its choices.

Core measures#

1. Reduction of mobility costs: partial or full reimbursement of public transport, bike subsidies, fuel allowance, toll coverage.
2. Promotion of sustainable transport modes: carpooling, public transit, cycling, partial remote work (which reduces commutes).
3. Coverage of expenses mentioned in Articles L.3261-3 and L.3261-3-1 of the Labour Code: notably the sustainable mobility allowance and transport costs.

Practical points of attention#

• The negotiation must be documented: meeting minutes, union requests, employer positions.
• Absence of agreement is not a breach: only the absence of negotiation (or bad-faith negotiation) is.
• The agreement is not perpetual: it must be reviewed annually, at minimum, during subsequent NAO rounds.

When the PDM becomes mandatory#

In the absence of an agreement on mobility measures during the NAO, the PDM becomes mandatory. The employer drafts it alone, consulting the works council.

Mandatory content of the PDM#

The content of the employer mobility plan is not strictly codified in this case. It draws on the mobility-plan framework of Article L.1214-8-2 of the French Transport Code (which targets companies with 100+ employees within an urban transport perimeter) and on ADEME and Cerema guidance. The plan usefully covers:

1. Mobility diagnosis: analysis of home-to-work commutes, transport modes used, current costs.
2. Quantified reduction targets: for example, a 10% reduction in single-occupant car commutes within three years.
3. Proposed measures:
   • Improved access to public transport (partnerships, subsidies).
   • Development of carpooling or demand-responsive transport.
   • Support for active modes (cycling, walking): parking, showers, lockers.
   • Work-time adjustment: remote work, staggered hours.
   • Sustainable mobility allowance (if chosen).
4. Timeline and responsibilities: who implements what, within what timeframe.
5. Monitoring and evaluation system: annual indicators, comparative report.

Form and retention#

The PDM need not be published, but its existence and content must be documented and retained for the duration of its application (minimum three years). It may be consulted during an inspection by the labour inspectorate.

Definition and 2026 ceilings#

The sustainable mobility allowance is an allocation paid by the employer to the employee to cover part of their home-to-work transport costs (public transit, cycling, carpooling, etc.). Its appeal lies in the exemption from social contributions and income tax up to certain ceilings.

2026 ceilings:

Important: the €900 ceiling is a global cap, not a sum added on top of the FMD. For example, if an employee receives €600 in public transport reimbursement and €500 in FMD, the total reaches €1,100: only €900 is exempt; the surplus (€200) is added back into the contribution base.

Is FMD mandatory?#

The FMD is optional for the employer. Many companies negotiate it as an alternative or complement to employer-subsidized public transport. It may be universal (all employees benefit) or targeted (only those without public transport access).

Link to the mobility plan#

The PDM may recommend the FMD, but it is not mandatory to offer it. Some companies prioritize public transport funding; others choose FMD for greater employee freedom.

A services SME with 80 employees in Paris, with union representatives, negotiates on mobility. The agreement reached: 75% coverage of the Navigo travel pass (the legal minimum is 50%) and a sustainable mobility allowance for employees who cycle or carpool. For an employee combining a public transport pass and the FMD, the contribution exemption is capped at €900 per year, all schemes combined. The company therefore calibrates the FMD — for example €25 per month, i.e. €300 per year — to stay under this global cap once the Navigo coverage is included. Beyond that, the excess is added back into the contribution base.

Such an agreement, documented and implemented, meets the obligation and reduces union disputes.

• Annual negotiation = ongoing obligation: a 2024 negotiation is not enough; it must be relaunched every year.
• Absence of agreement ≠ compliance: the absence of agreement creates the obligation for a PDM. Omitting the PDM exposes the company to union disputes and labour inspectorate sanctions.
• FMD ceilings are strict: overage = contributions on the excess. Track calculations in payroll.
• Works council: involved from the start: consultation on the PDM or mobility agreement is not optional; it creates a documented record.
• Remote work counts as a measure: a well-documented telework policy can partially satisfy the obligation to reduce commutes.

Recently, we advised a company with 65 employees that had never formalized a negotiation on mobility. During an URSSAF inspection, the absence of a PDM and written agreement was flagged. The company had to retroactively reconstruct informal exchanges with unions and implement a PDM. This late regularization created administrative costs: meetings, plan writing, works council notification. The lesson: treat mobility as a structural component of payroll and HR, from the first NAO, to avoid costly catch-ups.

Hayot Expertise advice. As a chartered accountant registered with the French professional body (Ordre des experts-comptables), we systematically build the mobility component into our payroll engagements. Launch your mobility negotiation before March each year, integrated into the broader NAO process. A documented process (invitations, minutes, positions) is sufficient; no formal agreement is legally required, but its absence creates the obligation for a PDM. Our outsourced payroll management service includes monitoring of mobility agreements and correct FMD calculation on payslips. For a broader ESG reporting or ESG indicators initiative, mobility integrates naturally into your 2026 ESG obligations and your CSRD preparation.

• Verify average annual headcount (≥ 50 employees) and union representation.
• Add mobility to the annual NAO agenda.
• Document union requests and employer responses (meeting minutes).
• If agreement: formalize in writing, sign, communicate to works council.
• If no agreement: develop an employer mobility plan (diagnosis, objectives, measures, timeline, monitoring).
• If FMD chosen: implement correct calculation in payroll (ceilings €600/€900 depending on combination with public transport reimbursement).
• Revise annually during subsequent NAO rounds.
• Retain archives (agreements, PDM, calculations) for at least three years.