Draft Proposal to Reform French Arbitration Law

Is French arbitration law on the brink of reform? Amid the global wave of arbitration reform across Europe and beyond, France initiated in late 2024 the process of reforming its 14 year old arbitration law.

On 20 March 2025, an ad hoc working group submitted its report to the French Ministry of Justice, recommending several significant changes, including the creation of an arbitration code. This is the first major reform proposal since the 2011 Reform which positioned France as a progressive and arbitration-friendly jurisdiction.

The current reform project and the key contributors

Thirteen years after the last reform of arbitration law, the French Ministry of Justice reaffirmed its commitment to further modernisation. In November 2024, it appointed a working group, co-chaired by François Ancel, a judge of the French Court of Cassation, and Thomas Clay, professor and arbitrator (the Working Group). The Working Group included representatives from arbitral institutions and associations, as well as leading academics and practitioners.¹ It was tasked with reviewing and modernising the legal framework governing arbitration in France with the aim to enhance its efficiency and attractiveness and addressing the evolving needs of the arbitration community.² These ambitions were reflected in the mandate of the Working Group, which was tasked with: (i) assessing the effectiveness of the current legal framework, (ii) drafting proposals to address identified gaps or areas for improvement in the current legal framework, and (iii) summarising the Working Group’s findings, analyses, and proposals in a comprehensive report.³

On 20 March 2025, the Working Group submitted to the Ministry a comprehensive report containing 40 detailed proposals and a draft arbitration code (the Report).⁴

During Paris Arbitration Week, Professor Thomas Clay emphasised that the reform project, through its various proposals, seeks to broaden the scope of arbitrability while making the law more effective, simple, modern, and precise.⁵

Key proposal

A new standalone arbitration code

To increase the autonomy of arbitration law, the Working Group proposed the establishment of a separate, unified and autonomous arbitration code (the proposed Code).⁶ The proposed Code was unanimously endorsed by all members of the Working Group.⁷

Currently, French arbitration law is dispersed across nearly 20 different codes and several laws.⁸ By consolidating all relevant provisions into a single, coherent text, the proposed Code will significantly improve the clarity and accessibility of French arbitration law.⁹ Codification is also expected to enhance the international attractiveness of French arbitration law: a unified code will be easier to translate, thereby promoting its global circulation and influence.¹⁰

An increased flexibility

Several proposals in the Report seek to reduce unnecessary formalism and redefine key legal concepts such as:

• Simplification of the formalism of arbitration agreements: The Working Group aims to remove any formalism that impedes the arbitration process, in favour of a more pragmatic approach reflecting the consensual and practical nature of arbitration, as well as parties’ voluntary commitment to the arbitration clause and eventual arbitral award;
• Simplification of signature requirements for arbitral awards: The Working Group proposes to allow the presiding arbitrator to sign the arbitral award alone, a departure from current domestic arbitration practice where unanimous signatures are required;
• Recognition of electronic awards: The Working Group proposes to explicitly allow the issuance of electronic arbitral awards;
• Replacing “notification” with “communication” of the award: The term “communication” is proposed as a broader, less restrictive alternative that also accommodates the delivery of electronic awards.

An increased protection of parties’ rights

The proposed reform also aims to promote a more protective arbitration framework for the parties involved in the proceedings. This objective is reflected in several proposals such as:

• Requirement for an odd number of arbitrators in tribunals seated in France, while allowing awards rendered abroad by evenly composed tribunals: In the latter situation, the enforcement judge (juge de l’exequatur) would have discretion to enforce the award despite the even number of arbitrators;
• Requirement that arbitrators seated in France be natural persons: This proposal reflects the Working Group’s intention to exclude the possibility of fully AI-generated arbitral tribunals;
• Introduction of measures to address party impecuniosity: Under Article 33 of the proposed Code, the juge d’appui, the French judge competent to support and assist the arbitration proceeding, would be empowered to adopt any necessary procedural or substantive measures to safeguard the rights of an impecunious party;
• Clarification of arbitration rules in family, labour, and consumer matters: One of the key objectives of the Working Group is to clarify the application of arbitration law rules in family law, labour law and consumer law. To achieve this, the group proposes codifying arbitration rules in these areas and introducing protective derogatory rules for family arbitration.
• Protection of third-party rights: The Working Group proposes the introduction of new provisions to clarify matters related to third-party opposition (tierce opposition) and to allow accessory voluntary interventions (intervention volontaire accessoire) before the Court of Appeal, thereby enhancing procedural fairness and transparency for non-parties affected by arbitral decisions.

An increased efficiency

The proposed reform also aims to promote a more efficient arbitration framework. Among the key proposals put forward by the Working Group are the following:

• Clarification of the conditions of the negative effect of the compétence-compétence doctrine: the Working Group suggests a revised version of Article 1448 of the French Code of Civil Procedure, aiming to better delineate the conditions under which this principle applies;
• Empowering arbitral tribunals to consolidate arbitration proceedings: While an increasing number of arbitration institutions already allow consolidation of procedures, this will be particularly useful for ad hoc arbitrations, or institutional arbitrations lacking specific consolidation provisions;
• Considering the introduction of class arbitration proceedings: Inspired by practices in other jurisdictions like the United States, this proposal suggests integrating class arbitration into the French system;
• Expanding the powers of the juge d’appui, by granting him, for example, the power to prevent a denial of justice;
• Establishing an autonomous procedural regime for the examination of appeals before the Court of Appeal:  This would include eliminating the Court of Appeal’s ability to rule on the merits of arbitral awards, and allowing the juge d’appui or the Court of Appeal to hear arbitrators or collect their statements. The Working Group also proposes incorporating certain rules applicable before the international commercial chamber of the Paris Court of Appeal into the proposed Code, such as allowing the production of English-language documents without the need for translations and allowing documents in languages other than French and English to be produced without certified translations;
• Modernising the recognition and enforcement of arbitral awards: Notable measures include adding a provision for an action en inopposabilité allowing a party to challenge the recognition or enforcement of an arbitral award and removing the suspensive effect of appeals against awards in domestic arbitration.

Upcoming Steps

As recalled by Louis Degos, president-elect of the Paris Bar, during Paris Arbitration Week, the reform process will unfold in three phases:

• A first set of consensual measures to be introduced in autumn 2025;
• A second set addressing more sensitive issues by summer 2026;
• A third set to present the final version of the Code de l’arbitrage in autumn 2026.

On the same day, the Minister of Justice, Gérald Darmanin, announced that a series of consultations on expertise and key issues will take place in the coming weeks.

Indeed, it is important to note that the reform project has not yet secured unanimous support among Paris-based arbitration practitioners. Many key actors – including a vast majority of practitioners, institutions, and associations – have not been involved in the drafting process yet.

As highlighted in April during Paris Arbitration Week, a consultation phase with the main arbitration associations and institutions in Paris has only recently begun, under the supervision of the Direction des Affaires Civiles et du Sceau (DACS) of the Ministry of Justice. Consequently, both the provisional timeline and the content of the reform project remain subject to potential revisions.

Daniel Boruzi, Stagiaire, Paris, assisted with the preparation of this briefing.

Footnote

1. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 2. (Available online)
2. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 8: “Le contexte international s’y prête. Plusieurs pays se sont engagés dans une voie de réforme de leur droit de l’arbitrage que ce soit en Europe (Royaume-Uni, Allemagne, Luxembourg, Belgique, Italie, Grèce, Suisse) ou ailleurs dans le monde (Chine, Maroc), témoignant ainsi de leur volonté de moderniser leur droit de l’arbitrage pour gagner en attractivité dans le contexte d’une concurrence avivée entre les droits de l’arbitrage. La France ne peut ignorer ce mouvement général ; surtout si elle souhaite conserver sa prééminence en maintenant un droit de l’arbitrage qui réponde aux besoins des acteurs économiques tout en garantissant un haut degré de sécurité juridique. Si le leadership de la place de Paris est incontesté et si Paris est assurément la capitale mondiale de l’arbitrage international, cette place est enviée. Il était donc temps de réaffirmer la primauté du droit français de l’arbitrage.“. (Available online)
3. French Minister of Justice, Engagement latter dated 12 November 2024. (Available online)
4. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 9: “La date de remise des travaux du groupe de travail a été fixée dans le courant du mois de mars 2025, ce qui sera respecté puisque le rapport a été officiellement remis le 20 mars 2025.“. (Available online)
5. Paris Baby Arbitration, Special Edition Biberon (Paris Arbitration Week), April 2025: “The project also aims to extend arbitrability, establish an autonomous regime of action for annulment, and to introduce the unenforceability of certain decisions against third parties.“.(Available online)
6. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025, p. 18: “Proposition n° 1 : Regrouper l’ensemble des textes de valeur législative et règlementaire dans un code autonome intitulé « Code de l’arbitrage », le diviser en plusieurs livres et toiletter les autres codes qui y renvoient“. (Available online)
7. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 15: “Le principe d’un code a d’ailleurs été adopté à l’unanimité des membres du groupe de travail.“. (Available online)
8. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 14: “En l’état actuel, le droit français de l’arbitrage est éparpillé dans près vingt codes différents et plusieurs lois.“. (Available online)
9. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 14: “L’intérêt est d’abord pédagogique. Une telle présentation est de nature à renforcer la cohérence et la lisibilité du droit de l’arbitrage, en centralisant l’intégralité des dispositions au sein d’un seul et unique texte. Cette démarche permet de rendre accessible à tous ce mode de résolution des litiges et donc de le populariser.“. (Available online)
10. Working Group under the direction of François Ancel and Thomas Clay, Proposed reform of French arbitration law dated 20 March 2025 (2025), p. 14 : “La codification est ensuite un outil de rayonnement du droit français de l’arbitrage. Là où de très nombreux codes s’adressent avant tout à un « lectorat interne », le droit de l’arbitrage cherche à se faire connaître dans le monde entier afin de convaincre les opérateurs économiques de fixer le siège en France ou d’adopter le droit français. Dans cet environnement concurrentiel, l’utilité d’un regroupement de l’ensemble des normes dans un corpus autonome est un facteur décisif dans la recherche de compétitivité du droit français de l’arbitrage. La création d’un code favorisera sa diffusion, notamment en facilitant sa traduction et en ciblant les dispositions à faire connaître.“. (Available online)