Proposals for reform of French arbitration law: evolution, revolution and an autonomous code

This article discusses the potential reforms to French arbitration law, proposed by the French Ministry of Justice’s working group in its Report and proposals for the reform of French arbitration law.

In November 2024, the French Ministry of Justice (MoJ) officially launched a working group, which it tasked with reviewing potential reforms to French arbitration law. Co-chaired by Judge François Ancel of the Cour de Cassation and Professor Thomas Clay, the group was to explore additional enhancements and improvements to ensure that France remains a competitive and forward-looking jurisdiction for arbitration (see Legal update, France’s Ministry of Justice initiates review of French arbitration law).

On 20 March 2025, the working group submitted its Report and proposals for the reform of French arbitration law to the French Ministry of Justice (Report). The Report comprised two documents, first, a submission detailing the tasks undertaken by the group, and setting out its forty proposals for reform (Proposed Reform), and, secondly, a draft Code of Arbitration (Draft Code). The Report was formally published on 26 March 2025 and presented during Paris Arbitration Week 2025.

The Proposed Reform is structured around four key pillars:

• Structural law reform proposals for the establishment of an autonomous French arbitration law.
• Substantive proposals to make French arbitration law more flexible and efficient, as well as increasing certain protections for arbitration users and third parties.
• Changes to improve consistency and coordination between French arbitration law and other, existing laws.
• Proposals building on established law to enhance the promotion and understanding of arbitration law.

The first two pillars form the core of the Proposed Reform, which, if implemented, would represent a significant change to French arbitration law, which was last subject to any major reform in 2011.

For detailed discussion of French arbitration law as it currently stands, see Practice notes, Arbitration in France and Enforcing arbitration awards in France.

Structural proposals

Creation of an autonomous French arbitration code

At present, French arbitration law is scattered across 23 different codes and several laws, including the Code of Civil Procedure (CCP), (see Practice note, Arbitration in France: Sources of French arbitration law). In the Proposed Reform, the working group proposes consolidating these into the Draft Code, a single code comprising 146 articles. These would be structured in four chapters addressing general provisions and rules governing the arbitration process, the recognition and enforcement of awards, rules for specific subject matters (such as arbitration of family, labour and employment, consumer, and administrative matters), and miscellaneous provisions.

Extension of arbitrability and clarification on court jurisdiction

If adopted, the Proposed Reform would also extend the scope of arbitrability by repealing articles 2060 and 2061 of the Civil Code. These provisions respectively exclude certain matters from arbitration and limit enforcement of arbitration clauses to parties consenting to them in their professional capacity (see Practice note, Arbitration in France: Arbitrability). In addition, the Proposed Reform revisits the arbitrability of disputes involving public entities, proposing that the French civil courts should hold exclusive jurisdiction over applications to set aside, or proceedings for the recognition and enforcement of international arbitration awards, including disputes involving public entities. At present, the administrative courts have jurisdiction over certain matters involving public entities and, to maintain a balance, the working group has proposed the creation of a procedure under which the civil courts could request an advisory opinion from the Conseil d’État in matters involving public entities. There may be resistance to this proposal from the administrative courts, with the potential for adjustments in the coming months, following dialogue with the working group.

Removal of distinction between international and domestic arbitration

French arbitration law currently distinguishes between international and domestic arbitrations, which are governed by different rules, although these overlap in certain respects. The Proposed Reform introduces a single, unified legal regime, which would apply to arbitrations seated in France, whether international or domestic. To achieve this, the working group proposes the alignment of the rules pertaining to domestic arbitration with the more liberal and arbitration-friendly framework traditionally reserved for international arbitration. However, where necessary, certain specific rules for domestic arbitration will be retained.

Adoption of guiding principles for arbitration

The current legal framework reflects an ambivalent relationship between arbitration and the guiding principles for civil procedure set out in the CCP. While some of the guiding principles are applicable to arbitration, the French courts have also developed distinct principles specific to arbitration, which has created uncertainty in certain areas, therefore the working group recommended the adoption of express guiding principles for French arbitration law, which would fall into four categories:

• The fundamental values of arbitration, including the independence and impartiality of arbitrators, the obligation to treat parties equally, and the prevention of denial of justice.
• The principles shaping arbitration law,including good faith, effet utile, confidentiality, proportionality, and efficiency.
• Principles essential to the functioning of arbitration, such as party autonomy in choosing a governing law for the merits and the procedure, as well as matters such as the definition of an award.
• The core principles defining the characteristics of French arbitration law, including interpretation of arbitration agreements according to the common intention of the parties, kompetenz-kompetenz, the ability of French courts to recognise and enforce awards set aside at the seat of arbitration, and the prohibition on parties invoking their domestic law to circumvent an international arbitration.

The Proposed Reform describes these guiding principles as mandatory rules shaping the structure and interpretation of the Draft Code. It remains to be seen how these principles will be used in practice. For example, parties may try to invoke them as grounds to seek the annulment, or to resist enforcement, of awards, particularly the general principles such as procedural loyalty or proportionality.

Substantive proposals to make French arbitration law more flexible, protective and efficient

Accessibility and protection of parties

The working group proposed removal of all mandatory formalities for the validity of an arbitration agreement, as well as simplifying the rules on the signature of awards. The Proposed Reform also provides for the recognition and enforceability of electronic arbitral awards.

The Proposed Reform would also remove the option for parties to waive their right to apply for the setting aside of awards, on the basis it is rarely used in practice. However, this was criticised by some practitioners, who described the waiver as a valuable tool for international users and a key differentiator for Paris as a seat of arbitration, meaning that this proposal may be considered further. The Proposed Reform would also codify the existing case law in family, labour and consumer arbitration and include safeguards for vulnerable parties. It also aims to clarify the rules on third-party opposition and enhance protection for third parties by allowing them to challenge an order granting recognition and enforcement of an award.

Enhancing judicial support for arbitration

The Proposed Reform introduces innovative provisions, like giving authority to the juge d’appui (that is, the judge with jurisdiction to support an arbitration) to enforce provisional measures ordered by arbitral tribunals. This proposal has been welcomed by practitioners, as it would strengthen judicial support for arbitration, reinforce the authority of the tribunal, and better safeguard the parties’ rights during the arbitral process. The working group also proposed a specific mechanism to address financial hardship by empowering the juge d’appui to take necessary measures to enable arbitration in cases of impecuniosity, in line with the new guiding principle of preventing denial of justice. However, the notion of impecuniosity will have to be clarified by case law, as some have expressed concerns about potential judicial overreach and uncertainty.

Autonomous procedural regime before the Court of Appeal and enhanced enforcement framework

The Proposed Reform suggests the introduction of certain procedural features specifically designed for arbitration matters for proceedings before the international commercial chamber of the Paris Court Appeal, including providing for submissions to be made, and evidence used, in English, without translation into French). To improve procedural predictability and foster dialogue with the parties, the Proposed Reform also introduces binding procedural calendars, with a system of civil fines in cases of non-compliance with those calendars.

One of the most innovative features introduced by the Proposed Reform is the possibility for domestic courts to stay proceedings for the annulment of awards to give arbitral tribunals the opportunity to regularise their award, and eliminate the grounds for setting it aside. The working group further proposes harmonising appeal procedures by removing the possibility of appealing domestic awards and it also proposes removing grounds for setting aside relating to mere formalities.

Consistency and coordination with existing laws and enhanced judicial training

The Proposed Reform seeks to create a coherent legal framework for arbitration by amending various arbitration-related provisions scattered across different codes, which are outdated. This includes, for example, a proposal to redraft article L.1221-5 of the French Labour Code, which renders jurisdiction clauses in employment contracts null and void, although this provision does not apply, in practice, to employment contracts containing arbitration clauses.

In addition, the Proposed Reform suggests several means to increase French judges’ expertise in arbitration, including specialised training programs, decision-support tools, and improved access to relevant resources.

Three-phase roadmap for implementing the Proposed Reform

When it published the Report, the MoJ announced a three-phase roadmap for addressing the Proposed Reform. There will be a first set of consensual measures by autumn 2025, with a second phase addressing controversial issues by summer 2026, and a final draft of the autonomous Code to be enacted in autumn 2026.

This is an ambitious roadmap, particularly given the current fluctuating political climate in France. However, that ambition is in line with the swiftness and efficiency of the reform process so far. We nonetheless expect that various public discussions and commentary on the Report will serve to finetune the Proposed Reform and make it as consensual and practitioner friendly as possible.