Employer of Record in France

Hiring in France for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in France in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in France.
• Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with France’s labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Businesses can only operate smoothly in France if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in France below, to avoid any compliance issues.

Employment Contract Requirements

France follows European Directive 2019/1152, requiring employers to communicate key employment terms in writing. Employment contracts, whether permanent or fixed-term, must be in French, regardless of the employee's language proficiency. The following formalities must be followed when employing in France:

• Filling out pre-hiring declaration by the employer (“déclaration préalable à l’embauche”)
• Informing the French Labor Administration of the employment (“Inspection du travail”)
• Registering company with complementary pension funds
• Acquiring health insurance and provident insurance in compliance with French law and applicable collective bargaining agreements
• Recording full names of employees in the staff register (“registre du personnel”)
• Completing immigration formalities for non-French employees (excluding European nationals)

Onboarding Process

We can help you get a new employee started in France quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in France

According to French law, the maximum working hours for all companies is set at 35 hours, with a maximum of 10 hours per working day. A minimum rest period of 11 hours is required between two consecutive working days, and a 20-minute break is mandated after 6 hours of work.

Overtime in France

In France, working overtime is not as prevalent, but employers can consent to extended workweeks. Any hours beyond the regular 35 hours per week are considered overtime, with employers compensating at a rate of 25% per hour for the initial eight hours of overtime. An extra 50% is applied for each subsequent hour.

Probation Period in France

Probationary periods in France serve to reduce hiring risks and allow employers to evaluate their employees' abilities. During this period, the employment contract can be terminated by either the employee or the employer without cause, incurring no extra costs for the employer except for mandatory notice periods, which can range from 24 hours to 1 month. The duration of these periods varies based on criteria such as the employee's role and seniority:

• Office and blue-collar workers ("employés et ouvriers"): 2 months
• Supervisors and technicians ("agents de maîtrise et techniciens"): 3 months
• Executive employees ("cadres"): 4 months

Fiscal Year in France

1 January - 31 December is the 12-month accounting period that businesses in France use for financial and tax reporting purposes.

Payroll Cycle in France

The payroll cycle in France is usually monthly, with employees being paid by the end of the month.

Minimum Wage in France

The minimum wage for employees in France is typically 11.75 EUR per hour, amounting to ~1,645.58 EUR per month for a typical 35 hour work week.

Bonus Payments in France

In France, it is customary to give 13th-month salary payments at the end of the year.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 31.56% - 54.11% on top of the employee salary in France.

Employee Payroll Tax Contributions

In France , the typical estimation for employee payroll contributions cost is around 30.23%.

Individual Income Tax Contributions

Income tax is computed using progressive rates in France, reaching up to 45%. Factors like household status and the number of children can impact the overall tax rates.

Pension in France

In France, pension eligibility requires at least 10 years of residence and work in the country, with 40-43 years of employment for the maximum pension. Supplementary and private pension plans are also available. The retirement pension, administered by French Social Security, can be claimed at age 62, offering between 37.5% and 50% of the average annual income over a 25-year career.

Mandatory Leave Entitlement in France

The annual leave entitlement in France is 25 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In France

France observes 11 public holidays mandated by law, which are separate from the minimum holiday entitlement in the French Labor Code. The Alsace region and the Moselle department observe two extra days. Employers usually grant these public holidays as days off, and collective bargaining agreements specify that employees must take time off on these days:

Paid Time Off in France

As per France's labour code, employees are entitled to a minimum of five weeks of paid vacation annually, granted after completing one month of probation, in addition to public holidays. However, it is customary to allocate extra leave days through collective bargaining agreements.

Maternity Leave In France

Pregnant employees in France receive 16 weeks of maternity leave, extendable for more children or health reasons. Maternity pay, provided by Social Security, requires six months of affiliation before the due date, with 150 hours of work in the 90 days preceding leave. The pay is based on the average salary from three months before the leave, capped at 3,428 EUR, and is distributed every two weeks.

Paternity Leave In France

In France, paternity leave lasts 25 days, with the first 3 days after birth paid by the employer. Fathers must take 4 days, and the remaining 21 days can be used within 6 months, either consecutively or in two periods of at least 5 days. Multiple births add 7 extra days covered by social security. Qualification requires 10 months of social security enrolment and one month's notice. Payment is based on the average daily salary over the last 3 months, capped at 88.84 EUR per day.

Sick Leave In France

Employees with over three months of service and 150 hours worked are entitled to unlimited paid sick leave based on their regular salary. They must provide a medical certificate to the employer within 48 hours to obtain a Social Security salary certificate. The first three days serve as a qualifying period, and from the fourth day onward, Social Security covers the pay. Additional compensation from the employer is detailed in collective or company agreements.

Parental Leave In France

Employees with at least one year of service at their child's birth can request up to one year of unpaid parental leave or switch to part-time (pro-rata) with employer approval. Monthly allowances are provided for those with over two years of service and multiple children. A 3-5 day parental leave is granted for a child's illness, extendable until the child turns three.

Bereavement Leave

If an employee experiences the loss of an immediate family member, they are entitled to three days of leave.

Adoption Leave

In the case of adopting a child that involves travel, employees can take six weeks of unpaid leave.

Termination Process in France

Employment agreements can be concluded through redundancy, resignation, or mutual agreement negotiation. However, termination due to COVID-19 is prohibited in France. To formally end the employment, employers must provide the employee with the following documents:

• Position certificate ("certificat de travail")
• A document for the French Public Employment Service ("Pôle emploi") for unemployment benefits
• Employer statement on owed amounts ("solde de tout compte")

Notice Period in France

In France, notice periods, including post-probationary periods, extend based on the duration of employment:

• 0-6 months of service: determined by relevant collective agreements (ranging from 24 hours to 30 days)
• 6 months-2 years of service: 1 month notice
• 2 years above: 2 months' notice
• For executives: 3 months' notice

Severance in France

Mandatory severance payments are required for dismissals, contract breaches, or mutual termination in France. The amount is typically calculated based on the highest figure among the monthly average over the past year, the general monthly average, or one-third of the payment over the last three months. It varies depending on the employee's seniority:

• First 10 years of seniority: 1/4 of monthly salary per year
• After 10 years of seniority: 1/3 of monthly salary per year