Employer of Record in France

An Employer of Record (EOR) in France legally employs workers on your behalf. This means you can hire talent in France without setting up a local entity. An EOR handles all the legal and HR responsibilities that come with employment. This includes payroll, taxes, benefits, and compliance with French labor laws. Using an EOR like Rivermate simplifies your expansion into the French market.

How an Employer of Record (EOR) Works in France

An EOR simplifies hiring in France. Here is how it works:

1. You find the candidate. You recruit the talent you want to hire in France.
2. The EOR hires the employee. The EOR legally employs the candidate under their French entity. They handle the employment contract, making sure it complies with French labor laws.
3. The employee works for you. Your new team member performs their daily tasks for your company. You manage their work and projects.
4. The EOR manages HR and payroll. The EOR takes care of all administrative tasks. This includes processing salaries, taxes, and social security contributions. They also manage benefits and ensure everything follows French regulations.

Why use an Employer of Record in France

Using an EOR in France offers a simple and efficient way to build a team. It saves you the time and expense of establishing a legal entity in the country. This allows you to enter the French market quickly and compliantly.

Here are some key benefits:

• Fast Market Entry. You can hire employees and start operations in France in a matter of days.
• Compliance with French Labor Law. EORs are experts in local labor laws. They ensure your employment practices are fully compliant. This minimizes legal risks. The official source for French labor law is the Code du Travail, which you can find on the Legifrance website (https://www.legifrance.gouv.fr/codes/id/LEGITEXT000006072050/).
• Reduced Administrative Burden. The EOR handles all HR and payroll tasks. This frees you up to focus on your core business.
• Cost-Effective. Setting up a legal entity in a new country is expensive. An EOR provides a more affordable alternative.
• Access to Local Expertise. EORs have in-depth knowledge of the local market. They can provide valuable insights and support for things like social security contributions, which are managed by URSSAF (https://www.urssaf.fr/portail/home.html).

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in France includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in France.

Hiring in France means navigating a system with strong protections for employees. The French Labor Code is the primary source of employment law, but collective bargaining agreements for specific industries also play a big role. Understanding these rules is key to a successful partnership with your French team members.

Employment contracts & must-have clauses

In France, you have two main types of employment contracts:

• Permanent contract (CDI): This is the standard, open-ended contract.
• Fixed-term contract (CDD): You can only use this for specific situations, like covering for an absent employee or a temporary increase in work.

While a written contract isn't always legally required for a permanent position, it's highly recommended. A written contract should be in French and include:

• Your company's and the employee's details
• Job title and responsibilities
• Place of work
• Working hours
• Salary and any bonuses
• Probationary period details
• Paid leave policies
• Notice periods for termination

Probation periods

A probation period lets you and your new hire see if it's a good fit. You must state the probation period in the employment contract for it to be valid.

Here are the maximum probation periods for permanent contracts:

You can renew a probation period once if the employment contract and any collective agreement allow for it.

Working hours & overtime

The standard workweek in France is 35 hours. Anything beyond that is overtime and requires extra pay:

• First 8 hours of overtime: 25% increase in pay
• Additional hours: 50% increase in pay

There's a cap on overtime, usually around 220 hours per employee per year.

Public & regional holidays

France has 11 official public holidays.

The Alsace region and the Moselle department have two extra holidays: Good Friday and Saint Stephen's Day.

Hiring contractors in France

You can hire independent contractors in France, but you need to be careful. The key difference between an employee and a contractor is the "relationship of subordination." This means you can't give a contractor direct orders, control their work, or punish them for not following your instructions.

Misclassifying an employee as a contractor can lead to serious penalties, including:

• Back payment of salaries, benefits, and taxes
• Fines
• In some cases, criminal charges

An Employer of Record (EOR) can help you avoid these risks. We hire employees on your behalf, making sure they're classified correctly and that you comply with all French labor laws. This lets you focus on your business while we handle the legal complexities.

Navigating compensation and payroll in France requires a clear understanding of the country's structured system. French employment law has specific regulations for everything from how often you pay your team to the taxes you both contribute. The system is designed to provide strong social protections for employees. This means you'll be responsible for withholding taxes and social contributions directly from your employees' pay.

Payroll cycles & wage structure

In France, you typically pay your employees monthly, with the salary paid on the last day of the month. Since 2019, France has used a Pay As You Earn (PAYE) system. This means you deduct income tax directly from your employees' monthly pay.

A common practice in France is the "13th-month salary". This is a year-end bonus that is customary and is usually paid out at the end of the year.

Overtime & minimums

The legal workweek in France is 35 hours. Any hours worked beyond this are considered overtime. Overtime pay is calculated at a higher rate.

• First eight hours (from the 36th to the 43rd hour): 25% increase in pay.
• Beyond the first eight hours: 50% increase in pay.

France has a national minimum wage, known as the SMIC (salaire minimum interprofessionnel de croissance). As of early 2024, the gross minimum monthly wage was €1,766.92. This figure is based on a 35-hour workweek. The government adjusts the SMIC annually to account for inflation.

Employer taxes and contributions

As an employer in France, you are responsible for significant contributions to the social security system. These contributions fund various social programs. The total employer contribution is generally around 45% of the employee's gross salary.

Employee taxes and deductions

Employees also contribute to the social security system, with deductions made directly from their gross salary. These contributions amount to approximately 20-23% of their salary.

In France, employee benefits and leave are generous, reflecting a strong commitment to worker well-being. You'll find that the system provides substantial time off and comprehensive social security coverage. This approach helps maintain a healthy work-life balance and provides a safety net for employees.

Statutory leave

French law ensures employees have ample time for rest, family, and health.

• Annual Leave: You must provide employees with a minimum of five weeks of paid vacation each year.
• RTT (Réduction du temps de travail): The standard workweek in France is 35 hours. If your employees work more than this, they are entitled to overtime pay or additional time off, known as RTT days.
• Sick Leave: There is no legal minimum for paid sick days. Instead, social security provides daily allowances after a three-day waiting period. Many employers choose to cover these first three days.
• Parental Leave: Mothers receive 16 weeks of maternity leave. Fathers are entitled to 25 days of paternity leave.
• Family Leave: Employees can take paid time off for significant family events. This includes leave for a marriage, the death of a family member, or a child's wedding.

Public holidays & regional holidays

France observes 11 national public holidays. Some regions have additional holidays.

Typical supplemental benefits

To attract and retain talent, you should consider offering more than the legal minimum. Many supplemental benefits are standard practice in France.

How an EOR can help with setting up benefits

Navigating French labor laws and benefits can be complex. An Employer of Record (EOR) simplifies the process for you.

An EOR acts as the legal employer for your team in France. This means they handle all the administrative and legal requirements of employment.

Here is how an EOR can help:

• Compliance: An EOR ensures your benefits packages comply with French law and any applicable Collective Bargaining Agreements.
• Administration: They manage the enrollment of your employees into mandatory social security and supplemental benefit plans.
• Payroll: An EOR handles all payroll calculations, including deductions for social contributions and taxes, ensuring your team is paid accurately and on time.
• Expertise: You get access to local HR and legal experts who understand the nuances of the French benefits landscape. This saves you time and reduces the risk of costly mistakes.

Ending a work relationship in France has clear rules. You must follow a specific process to make sure everything is fair and legal. This involves formal meetings, written notices, and defined timeframes. The goal is to ensure both you and your employee understand the reasons for the termination and the steps involved.

Notice periods

When you end an employment contract in France, you must give the employee a notice period. The length of this period usually depends on how long the employee has worked for you.

Here are the typical minimum notice periods:

• Less than 6 months of service: 1 month's notice.
• 6 months to 2 years of service: 1 month's notice.
• 2 years of service or more: 2 months' notice.
• Executives: Often 3 months' notice.

You must inform your employee of the termination in writing. The notice period starts the day the employee receives this letter. In some cases, like gross misconduct, you may not need to provide a notice period.

Severance pay

In France, employees are often entitled to severance pay when their contract is terminated. To be eligible, an employee must have at least eight months of service with your company. You do not have to pay severance in cases of serious misconduct.

The standard calculation for severance pay is:

• First 10 years of service: 1/4 of the employee's monthly salary for each year of service.
• From the 11th year onwards: 1/3 of the employee's monthly salary for each year of service.

Collective bargaining agreements can sometimes require more generous severance packages.

How Rivermate handles compliant exits

When you partner with us, you don't have to navigate the complexities of French employment law alone. We manage the entire offboarding process to ensure it is compliant and smooth for everyone.

Here’s how we help:

• Procedural Guidance: We guide you through every step, from the initial meeting to the final payment.
• Documentation: We handle all the necessary paperwork, including the formal termination letter.
• Calculations: We calculate the correct notice period and severance pay based on the employee's service and any applicable collective agreements.
• Clear Communication: We ensure communication with the employee is clear and meets all legal requirements.

Our process gives you peace of mind that every termination is handled professionally and in full compliance with French law.

Navigating French visas and work permits can feel complicated. We get it. The process is detailed, but understanding the basics makes it much more manageable. If you want to employ someone in France who is not a citizen of the European Union, European Economic Area, or Switzerland, they will need the right documents to legally work. Think of it in two parts: the visa, which lets them enter France, and the work permit, which allows them to take the job. For any stay longer than 90 days, your future employee will likely need a long-stay visa, which often serves as a temporary residence permit.

Employment visas & sponsorship realities

When you partner with an Employer of Record (EOR), we can sponsor work visas for your employees in France. This means we handle the application for a work permit on your employee's behalf, a key step before they can apply for their long-stay visa. An EOR must have a registered legal entity in France to sponsor these visas.

However, there are practical limits to consider.

• Visa Quotas: The number of visas France issues can be limited by quotas, which might affect availability.
• Common Route: The most typical path is the long-stay visa, valid for up to one year, which we can help secure for full-time employees.
• Intra-Company Transfers: If you are moving an employee from another country to your French operation, the Intra-Company Transfer (ICT) visa is a common option. This is for temporary relocations within a multinational company.
• Highly Skilled Workers: France offers a "Talent Passport" visa for highly skilled professionals, which is another practical route for qualified individuals.

An EOR simplifies the process by managing the paperwork and ensuring everything aligns with French regulations. We take on the legal responsibilities of being the employer, so you can focus on your business.

Business travel compliance

For short-term visits, the rules are more straightforward. Many non-EU nationals, including citizens of the United States, Canada, and Australia, can travel to France and the wider Schengen Area for up to 90 days in any 180-day period without a visa.

This visa-free travel is suitable for specific business activities:

• Attending business meetings
• Going to conferences or sports and cultural events
• Participating in short-term training

It is important to understand what you cannot do on a short-stay or visa-free trip. This type of travel does not permit you to engage in paid employment. The purpose is for business-related activities, not for working in a formal job. Always make sure your passport is stamped when you enter and leave the Schengen area to track your 90-day limit correctly.