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Employer of Record in France

Skuad’s Employer of Record France (EOR) solutions make business expansion to France easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in France, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.

France at a Glance

Estimated population: 64.9 million

Currency: EUR Euro

Capital: Paris

Languages frequently used: French, English

GDP: USD 2.78 trillion

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Employment in France

France was one of the first countries to enact and codify labor laws centuries ago. Labor laws in France have undergone considerable changes since then, but essentially, they remain favorable to workers’ rights. Several provisions exist that define the number of hours workers are supposed to spend in employment every week, the number of leaves that they are entitled to, pensions, maternity leaves, and more.

Employment laws and codes in France, such as the Labor Code, are fluid. The past few decades have seen many law reforms and attempted reforms. Given the kaleidoscopic nature of these laws and the immense influence of labor and trade unions in France, it is only natural that you would need a partner to help you maneuver through them.

Skuad’s EOR service in France has the expertise to help you overcome any obstacles as you try to expand your business. 

Some of the Employment Laws to note before hiring in France are as follows.

Title Explanation
The Labor Code Almost all the French employment laws have been derived from the French Labor Code. The Labor Code is a collection of diverse regulations, decrees, and laws that combine to determine the conditions under which an activity is carried out in France. All the provisions of the Labor Code are under the aegis of the French Constitution.
European Union Law France is a founding member of the European Union, and hence, the laws passed by the European Parliament with relation to labor also apply to it. These include treaty provisions, regulations, case law, and the European Convention for the Protection of Human Rights and Fundamental Freedoms.
Case Law The Supreme Court of France has an employment law section that interprets and legislates on the laws of the French Constitution associated with hiring and employment. The rulings of the court are also an important source for employment rules in France.

Timings, Holidays, and Leave Policies in France

Entitlements Explanations
Statutory working hours The maximum length of a working week in France is 35 hours. A single working day cannot be longer than 10 hours.
Rest period An employee is not permitted to work for more than four and a half hours without a break.
Public holidays Employees in France are entitled to certain public holidays. Several of these holidays do not fall on a specific date in the year, but rather on a specific day or a specific week in a month. The public holidays in France are as follows.
  • New Year’s Day
  • Good Friday
  • Easter Monday
  • Labor Day
  • VE Day
  • Ascension Day
  • Whit Monday
  • Bastille Day
  • Assumption Day
  • All Saints’ Day
  • Armistice Day
  • Christmas Day
  • Boxing Day
Maternity leave Maternity leave in France is 16 weeks for the first two children and 26 weeks for the third. The maternity leave may start six weeks before the birth of the child.
Annual leave accrual entitlement The annual leave entitlement for workers in France is two and a half days for every month that they work. This totals five weeks of leave every year. However, not more than 24 days of leave may be taken at a single time.

Contractors vs. Full-time Employees

France is among the countries that do not necessarily require a written contract for employment to be initiated. However, several employers choose to put employee contracts into writing. Most employment contracts in France have significant flexibility and allow the employee and employer to determine the terms of employment. 

France was among the first countries to transition to remote work. French companies and other companies based out of France allow remote work, and workers face no issues in working remotely. This culture has been a part of various companies in France for quite some time, and therefore, it has been easy to adapt to the new normal created by the COVID-19 pandemic.

As per the French Labor Code, most contracts will feature a length of the contract (unless the contract is for an indefinite period), the terms of employment, and termination. The trial and notice periods, if any, will also be mentioned, along with the total compensation for the period of employment. These are not rigid regulations but generally apply to both oral and written contracts.

Forming a contract in France, especially a written one, can be challenging if you are not acquainted with the local laws, regulations, and customs of employment. Skuad can help draft your contract template within the limits of the law. Get in touch to simplify expanding your business in France. 

Scope of Negotiating Terms

The process of the negotiation of terms is equally flexible. This is generally the last step of the hiring process. There are no standard salaries in France, and employees and employers determine individual salaries based on the merit of the application.

The salary structure in France is liberal and allows various provisions for the employees. Some of these provisions are supposed to be a part of the salary structure by law. The limits of these provisions are fixed and based on the salary that the employer and employee end up negotiating, as per the French Labor Code.

Drawing up a contract and salary structure in France following local laws and provisions can often be challenging if you are new to the country. EOR partners such as Skuad can come to your rescue and shoulder these responsibilities for you. 

Book a demo to know more about our services

Hiring in France

The hiring process all across the world is slowly inching toward standardization. Among companies that are looking to hire individual employees, there isn’t a significant difference in the hiring process across countries. LinkedIn and Indeed are popular employment search sites in France, as they are in several other countries. There are also a significant number of France-specific hiring websites such as Apec, Cadremploi, Codeur, and Meteojob that offer a varied collection of available positions in France.

An HR team looking for an employee will first write a job description in conjunction with the team that has a vacancy or requirement. The company will put out the job description for candidates to access not only on the Careers page of their websites but also on the previously mentioned job websites. Candidates are free to apply to these positions if they feel they match the job description, requirements, and qualifications.

Next, the HR team goes through each application to evaluate the qualifications of the candidates and their fitness for the job on offer. Candidates who are deemed suitable are invited for the first round of the hiring process. For senior positions, these will generally be interview rounds only, but for junior positions with a lot of applicants, a written test may also be included.

The shortlisted candidates will undergo a thorough background check before the HR round, where the salary negotiation occurs if the interviewer feels the candidate is fit for employment. On successful completion of these rounds, the candidate is offered the position.

Hiring through the above-mentioned employment websites can be a simple task for many HR teams since these websites provide them with access to a host of qualified, appropriate candidates. They do not need to carry out recruitment drives or step outside their office. All they have to do is advertise the position, and they are likely to receive several standout applications.

However, receiving more applications than the HR team can handle is the flip side of hiring through these platforms. In several applications, the candidates will be demonstrably unqualified for the job, and yet, the HR team will have to spend time sorting through their credentials.

For hiring in a new country, there are few options better than partnering with an EOR solutions company. Your EOR partner will be informed about the best platforms where you can fulfill your hiring needs and even conduct the process for you. Skuad can streamline your hiring process by taking care of all your HR needs.

Probation & Termination

Probation and termination are well-regulated activities according to French law. The maximum period for which an employee may be kept under probation is determined by law according to the employee’s category of work. Generally, the probation period is three months.

When it comes to termination of employment, the French Labor Code has rigid regulations to protect workers from unemployment. There are two reasons why a company may terminate an employee. 

  • Personal reasons include aspects concerning the conduct of the employee. If the employee has demonstrably not been performing well at work, is unable to perform assigned tasks, or indulges in misconduct, the company may terminate employment
  • Economic reasons are related to the financial aspects of the company itself, such as if the business organization is facing economic difficulties or looking to introduce major technological changes.

Companies are supposed to make legitimate efforts to redeploy employees within the group in case they are looking to terminate employment at a mass level. The orders of dismissal must be notified and the labor authorities must be informed in time. 

If the company has more than 50 employees and is looking to terminate 10 or more of them within 30 days, they must establish a job preservation plan, consult the representatives of the workers, seek approval from the authorities, and notify the employees. Skuad can take care of organization-wide changes such as terminations while adhering to the French government’s regulations on the same.

EOR Solution

Partnering with an EOR company in France is among the most important business decisions that you can take. The French labor law is incredibly detailed, and one wrong step can push your expansion back by many years. To understand French labor codes, you might need to spend significant time surveying laws or have to hire a team to do this for you exclusively. 

Partnering with an EOR such as Skaud can be a more efficient way to go about expansion since an EOR partner not only has expertise in local law associated with hiring and employment but can also carry out these tasks for you. The management of payroll, taxes, and employee records in France can be carried out through the experience and resources that Skuad offers. 

Contact Skuad today to significantly ease your expansion in France.

Outsourcing Employment through an EOR in France

Another advantage of having an EOR partner such as Skuad is that you save a vital amount of time, and potentially, economic resources. Relatively minor aspects of your expansion such as payroll management, tax management, and employee record management are handled by your EOR partner, and you can focus on more relevant activities associated with the expansion.

The EOR partner creates contracts that cater to your needs and requirements and conform to the bounds of local laws and regulations. With an EOR partner such as Skuad, hiring and employee management becomes as easy a task as it can be.

Types of Visas in France

There are two main kinds of visas, as presented in the table below.

Visa Category Explanation Duration
Short-stay visa There are two primary types of short-stay visas for France.
  • For the European mainland of France, the Schengen visa is appropriate and allows travelers to enter the entire area on a single visa.
  • For non-European French territories, you will require a separate short-stay visa issued by the French government.
90 days
Long-stay national visa There are four primary reasons why you may apply for a long-stay national visa.
  • You may require an extended stay for personal reasons or tourism reasons.
  • You may need to professionally work in France.
  • You may need a visa to study in France.
  • You may require a visa to join your family for an extended period in France.
More than 90 days

Applying for and securing a work visa is a key responsibility of EOR services. You can talk to Skuad to get assistance for your employees’ French visa requirements.

Work Permits

Foreign nationals who wish to be employed in France for more than three months are supposed to have a work permit. The work permit is applied for by their employer on their behalf. The work permit entitles them to further visa eligibility for up to 12 months, which can be further extended in turn. The work permit needs to be applied for by the employer who requests work authorization so you may receive the permit.

An EOR can provide expert assistance and oversee the process of acquiring a work permit in France. Skuad’s experience in the field means that you can trust us to handle all the work permit formalities for your non-national employees in France.

Payroll & Taxes in France

To set up a payroll system in France, you need to be aware of all local laws and regulations that govern this aspect of employment. In France, certain parts of the payroll are regulated by law and are important to recognize and follow when creating the payroll. This is a principal reason EOR partners can be useful for your expansion efforts. Skuad’s unified employment platform has expertise in the development and management of payrolls in France, which ensures organizations remain compliant with France's payroll regulations.

Payroll Details

Process Details
SIREN Number The SIREN Number is the tax identification number for companies and organizations that operate out of France. It is present on all the tax declarations and payment forms of the French government
Choosing a payroll system There are several aspects of the payroll system that you must keep in mind before developing one. Medical insurance, pensions, taxes, and other claims that you offer the employee all factor into the cost to the company (CTC).
Noting down all employee information Basic information, information related to wages, and regular work hours for employees are noted. This helps in taxation and other employee identification needs.

Employer Taxation

Tax Explanation
Financial year-end date December 31, each year
Corporate tax 25%
Payroll tax
Up to EUR 7705 4.25%
EUR 7705 - EUR 15385 8.5%
EUR 15385 - EUR 151965 12.6%
Greater than EUR 151965 20%
Employer contribution toward Social Security 40.11%

Employee Taxation

Tax Explanation
Income tax
Up to €11,294 0%
From €11,295 to €28,797 11%
From €28,798 to €82,341 30%
From €82,342 to €177,106 41%
More than €177,106 45%
Employee contribution toward Social Security 21.01%

Bonuses

Discretionary bonuses are awarded to executives or to employees who play a unique role in the company.

Bonuses may also be contractual and set out in a provision of the employee’s contract or a collective bargaining agreement. Many French employers use the 13th-month system, which must be specified in the contract. Typically, the 13th month’s salary is paid partly during the summer months and partly at the end of the year or the start of the next year.

Incorporation: How to Set Up a Subsidiary in France

The process of opening a subsidiary in France is similar to most other European countries. Subsidiaries, wherever their parent companies might be based, are considered tax residents of France. Hence, they must have registered addresses in France to operate there. Additionally, you must open bank accounts in France that are separate from those of the parent company.

To open a subsidiary, the parent company is required to obtain the required documentation and permits from taxation and business authorities. You must obtain both tax numbers and value-added tax (VAT) numbers to operate as a subsidiary. Additionally, each subsidiary needs to have statutory documentation filed with the French Companies Register.

Skuad’s EOR solutions for France can be of great help in this case.

Professional Employer Organization (PEO)

A professional employer organization (PEO) is very similar to an EOR. Just as an EOR can aid in expanding your business to new domains, a PEO is also a useful partner. However, when you take the help of a PEO in hiring, the employers need to be recruited to your payroll. The HR management and employee management need to be taken care of by the parent organization, and not the PEO.

Organizations planning to expand into new territories are better suited with a global EOR which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of an EOR solution. The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks as the EOR bears every legal liability for the organization. In addition to these, the EOR handles payroll, tax, and employment law compliances. To know more about Skuad's EOR solution, contact Skuad today.

Conclusion: What Gives Skuad’s France Solutions an Edge?

Skuad’s extensive expertise in the laws and regulations associated with the French labor code can help you save additional effort, time, and money. Skuad’s France EOR will ensure the smooth handling of all employment, labor, and contract-related activities. Why wait to make your best business decision yet? Book a demo with Skuad today and kick-start your expansion in France.

FAQs

1) What is the employer of record in France?

In France, the EOR is a three-way agreement between you, the client company, the EOR organization acting as the legal employer, and your French employee. This EOR handles payroll, taxes, and social security for your worker, allowing you to hire French talent without a local entity setup.

2) Is EOR legal in France?

The concept of a traditional Employer of Record (EOR) isn't directly defined in French law. However, "portage salarial" offers a similar solution. It's a legal framework allowing you to hire French talent without a local entity.  In this three-way agreement, a "portage salarial" organization acts as the legal employer, handling payroll, taxes, and social security for your worker.

3) What is the EU employer of record?

An EU Employer of Record (EOR) acts as your legal employer in Europe, simplifying workforce management. They handle HR tasks like payroll, taxes, and legal compliance across borders. This lets you hire top European talent without setting up local entities in each country.

4) What is the employer of record for foreign employees?

Employer of Record acts as a bridge for companies seeking top international talent. They assume legal employer responsibilities for your overseas workers, handling critical HR functions like payroll, tax administration, and benefits management. This lets you focus on talent acquisition without the burden of establishing a local legal entity.

5) What is an Employer of Record vs PEO?

An Employer of Record (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs staff, sharing responsibilities with the client company but typically requires the client to have an established business entity in the country.

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