Employer of Record in France

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

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.

Employers in France must adhere to strict labor laws that regulate working hours, overtime, and employee rights. The standard workweek is 35 hours, with a maximum daily limit of 10 hours and a weekly cap of 48 hours. Industry-specific exceptions and managerial roles may follow different rules, often outlined in collective agreements. Employees are entitled to minimum rest periods, including 11 consecutive hours daily and 35 consecutive hours weekly. Night and weekend work are subject to additional regulations, often requiring special authorization or enhanced compensation.

Overtime is tightly controlled, with a legal limit of 220 hours per year per employee. Employers must compensate overtime at 125% of the regular wage for the first eight additional hours (36th to 43rd hour) and 150% beyond that. Non-compliance with working hour and overtime regulations can lead to legal penalties, fines, and potential criminal charges. To maintain compliance, employers should carefully track employee hours, adhere to rest requirements, and ensure proper overtime compensation.

A flat-rate deduction of €0.50 per overtime hour has been introduced for companies with 50 to 249 employees.

As of 2025, France's minimum wage, known as the Salaire Minimum Interprofessionnel de Croissance (SMIC), is set at €11.88 per hour, equating to a gross monthly salary of €1,801.80 for full-time employees working a standard 35-hour workweek.

The net monthly wage, after deductions, is approximately €1,426.30. The SMIC applies universally, including to expatriates, ensuring equal pay across the workforce. However, exceptions exist for certain groups, such as apprentices and young workers, who may receive a reduced percentage of the minimum wage, and interns, who receive a financial compensation instead of a salary.

The French minimum wage is reviewed annually on January 1st and may be adjusted mid-year if inflation increases by more than 2%. The wage is indexed to inflation and economic conditions to protect workers' purchasing power. Additionally, collective bargaining agreements in some industries may establish higher minimum wages based on skill level and job responsibilities. Employers in France must stay updated on these changes to ensure compliance with labor laws and fair compensation for their workforce.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in France. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Employers in France must navigate a complex payroll system that includes income tax withholding, social security contributions, and other levies, each with specific rates and deadlines.

Non-compliance can lead to significant penalties and strained employee relations. Implementing payroll management software can streamline these processes, ensuring accurate calculations and timely submissions, thereby helping employers consolidate payroll data and maintain compliance with French regulations.

Hiring in France means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in France:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In France, work permits and visas are essential for employers hiring non-EU/EEA nationals. The process involves submitting applications, paying relevant fees, and ensuring eligibility criteria are met. Key visa types for foreign workers include the Talent Passport Visa for skilled workers, the Intra-Company Transfer Visa for internal employee transfers, the Temporary Worker Visa for short-term employment, and the EU Blue Card for highly skilled individuals.

Employers must comply with French labor regulations and may need to demonstrate that no suitable candidates are available from the EU labor market in some cases. Sponsoring a visa requires submitting a work contract, qualifications, and in some instances, additional documentation or labor market tests.

France has comprehensive leave policies designed to protect employees' rights while ensuring workplace productivity. Full-time employees are entitled to a minimum of 30 working days of paid annual leave per year, accrued at 2.5 days per month worked.

This entitlement is separate from the 11 national public holidays, which may be granted as additional time off depending on company policies. Employers must ensure compliance with these regulations and allow employees to take their accrued leave within the legal timeframe.

In addition to annual leave, France mandates various other types of leave, including sick leave, which requires a medical certificate and is partially compensated by Social Security. Maternity leave lasts 16 weeks, with potential extensions for multiple children, while paternity leave allows for 28 days off. Employees can also take parental leave for up to three years, either full-time or part-time. Special leave options such as family solidarity leave and sabbaticals are also available under specific conditions.

To ensure compliance with French labor laws, employers must implement clear leave policies, track employee leave balances accurately, and promote a healthy work-life balance by encouraging employees to take their entitled leave.

In France, employers are legally required to provide several key benefits to employees, including health insurance, pension plans, life and disability insurance, paid annual leave, maternity and paternity leave, sick leave, work injury insurance, unemployment insurance, public transportation reimbursement, and regular medical examinations.

Beyond these mandatory provisions, many employers offer supplemental benefits to attract and retain top talent. These may include supplementary health insurance, additional retirement plans, enhanced life and disability coverage, extra paid leave, extended parental leave, supplementary sick leave benefits, comprehensive accident insurance, income protection plans, company cars or transportation allowances, and wellness programs.

It's essential for employers to understand and comply with these legal requirements while considering additional benefits to support employee well-being and remain competitive in the job market.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including France, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with France’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in France. It’s a smarter way to scale benefits globally without losing local relevance.

In France, employment termination is strictly regulated, requiring a "real and serious cause" for dismissal. Employers can terminate employees on personal grounds, such as misconduct or professional incompetence, or economic grounds, including financial difficulties and company restructuring. The termination process involves a mandatory preliminary meeting, a decision period, and a formal notification of dismissal. Notice periods range from one to three months based on the employee's tenure, except in cases of gross misconduct where no notice is required.

Severance pay is mandatory for employees with at least eight months of service, calculated based on tenure and salary. Additional compensation may be granted under collective bargaining agreements. French labor laws provide strong protections against unfair dismissal, allowing employees to challenge terminations in labor courts, which may result in reinstatement or financial compensation. Employers must also provide final pay settlements and essential termination documents, ensuring compliance with legal obligations.