Whether you’re expanding operations into France or simply looking to employ global talent, hiring in France is an excellent strategic move. But, unfortunately, it’s not always a simple one. Regardless of where your company is based, you have to comply with France’s ever-changing and heavily regulated local employment laws.

Typically, one may consider using an employer of record in France; however, this model is not permitted in France. You may use a workforce management platform instead.

With the help of workforce management platforms, such as Payoneer Workforce Management, it becomes simpler to engage talent in France. You may focus on core business operations, while the workforce management platform offers assistance with managing payroll, taxes, benefits, and compliance as per local laws. 

Learn about Payoneer Workforce Management’s services in France, or read on to find out more about what hiring in France involves.

How to hire employees in France 

When hiring employees in France, businesses have three options:

1. Setting up a local entity: Legally registering your business in France allows you to hire employees directly, but the process can be long and expensive. 
2. Hiring independent contractors: This is a good option if you need French workers for short-term projects. However, relying on independent contractors for ongoing work poses the risk of employee misclassification, along with potential legal and financial consequences.
3. Hiring employees in France: This option is the most cost- and time-efficient, allowing you to engage talent in France without establishing a legal entity. A workforce management platform in France may offer support to handle legal and administrative tasks, like payroll, tax, and statutory benefits, while you run business operations as usual. 

Partnering with a workforce management platform in France

Usually, an Employer of Record is a third-party organisation that legally employs workers on your behalf, allowing you to quickly and easily hire workers based in other countries. 

However, the EOR model is not permitted in France; you may use a workforce management platform instead.

These platforms may help you with:

• Drawing up key employment agreements
• Onboarding employees in line with local labor laws
• Running global payroll
• Guidance on country-specific benefit packages
• Supporting ongoing HR

France has strict legal protections for its employees. Partnering with a workforce management platform may assist you with staying compliant. You also won’t need to set up a legal entity, making engaging and paying French employees as simple as hiring in your home country. 

Payoneer Workforce Management can help U.S. businesses to hire and pay French talent, while offering compliance support as per local laws. 

How to onboard employees in France

Onboarding a new remote employee smoothly and thoroughly is not only essential for compliance but also for the employee experience. 

This process involves:

• Submitting a Déclaration préalable à l’embauche or DPAE (a pre-recruitment declaration) to the local URSSAF to register the employee for social security, health insurance, and their pension
• Enrolling them in benefits
• Adding them to payroll
• Ordering and setting up their work devices
• Setting up their accounts
• Preparing any onboarding documentation
• Scheduling their orientation
• Preparing their training

Working with a workforce management platform, like Payoneer Workforce Management, may help you onboard local talent quickly with guidance to stay compliant with local laws.

Pay employees in France

The fiscal year in France runs from January 1st to December 31st. The payroll cycle is monthly, and employees are paid by the last working day of the month.

Employers should pay their workers at least the national minimum wage, which is currently EUR 11.65 per hour. It’s also customary to pay French employees an annual bonus at the end of the year, which is known as the 13th-month salary. 

Employers have to withhold employees’ income tax in France and pay it to the authorities. This tax is calculated on a progressive basis, based on household income. The income tax brackets in France are as follows:

Annual income	Tax rate
Up to EUR 11,497	0%
Between EUR 11,498 and EUR 29,315	11%
Between EUR 29,316 and EUR 83,823	30%
Between EUR 83,824 and EUR 180,294	41%
Over EUR 180,294	45%

Both employers and employees contribute to France’s social security system, which covers health, maternity, disability, death, unemployment, and more. Employer contributions amount to approximately 45% of the gross salary, while employees contribute around 22%, funding these statutory benefits.

Payroll laws are tightly regulated in France. A workforce management platform can offer compliance guidance while paying employee salaries.

Employment laws in France

In France, employment laws are covered in the Code du Travail (labor code). 

Some key employment laws to be aware of include:

Law	Description
Working hours	Full-time working hours in France are 35 hours per week, 151.67 hours per month, and 1,607 hours per year. However, this doesn’t apply to senior executives.
Overtime	Any time worked over 35 hours per week is considered overtime and is capped at 220 hours per year. This rule does not apply to senior executives. Overtime pay rates are 25% for the first 8 hours beyond 35, and 50% for hours beyond 43.
Probation period	Probation is for 2 to 4 months, depending on the role.
Rest days	Employees get at least 24 consecutive hours of rest per week, as well as at least 11 hours between 2 working days. This means that the minimum weekly rest period from one week to the next is at least 35 consecutive hours.
Remuneration frequency	Employees are paid once per month, usually on or before the last day.

Minimum wage in France

The minimum wage in France is EUR 11.65 per hour, which is equivalent :

• EUR 83.16 per day
• EUR 1,767.98 per month 
• EUR 18,730.55 per year 

Minimum wage applies to all workers over 18, as well as younger workers who have been employed by the same employer for 6 months or more. 

France’s minimum wage is revalued on January 1st of each year to align with inflation rates and the cost of living. A workforce management platform in France may be able to help you navigate the changing regulations, like the minimum wage.

Employment contracts in France

There are three types of employment contracts in France:

• The permanent contract (CDI)
• The fixed-term contract (CDD)
• The temporary contract

While a permanent contract can be verbal, fixed-term employment contracts must be written. Otherwise, you may face a fine of EUR 3,750, or even EUR 7,000 for a repeat offence. 

French labor law mandates that the following information must be included in a written employment contract:

• Identity and address of both parties
• Job title
• Professional qualifications
• Place of work
• Working hours
• Remuneration (salary and bonuses) 
• Paid leave 
• Notice periods

Collective bargaining agreements may also require further information, such as a probationary period, contract fulfilment terms, and termination.

Leave policy in France

French employees are entitled to the following leave:

Leave	Policy
Public holidays	11 days per year
Vacation leave	30 days per year
Sick leave	6 months, with a possible additional 6 months (Eligibility depends on contributions; daily allowance equals 50% of wage, capped at €50.58/day; duration can extend up to 6 months with medical certification)
Maternity leave	Between 16 weeks, extended for multiple births or existing children
Paternity leave	Paternity leave is 25 days (including compulsory birth leave)

A workforce management platform may be able you help you with tracking and framing leave policy. France has strict regulations around leave policy, which employers must comply with to avoid legal repercussions.

Work permit in France 

Non-EU or EFTA citizens and non-students require work permits to be legally employed in France, unless they are exempt.

Depending on the duration and nature of the work, they will need one of the below:

• Short-stay permit
• Long-stay permit
• Talent passport
• Temporary worker visa

Obtaining a work permit in France can take anywhere from 3 weeks to 3 months, costing between EUR 90 and EUR 225. 

Background check in France

Employers are legally required to carry out certain background checks on their employees, though they must comply with applicable privacy regulations like GDPR and the French Data Protection Act. To safeguard employee privacy rights, employers must also declare their intended candidate selection tools, including automated systems, to the French Works Council. 

Employers can only carry out background checks after making a conditional offer of employment and receiving the employee’s consent.

Some of the more common employee background checks in France include:

• Employment history check
• Educational verification
• Professional references verification
• Criminal record check (Bulletin No. 3)
• Social media screening
• Global sanctions check
• Motor vehicles record check (driver’s license)

Employers can only run checks and obtain information relevant to the role they’re hiring for. They shouldn’t request personal information about the candidate, such as their race, religion, or sexual orientation.

Employment termination in France

In France, employees may be dismissed on personal or economic grounds. Personal dismissals must be justified by a clear and serious reason, including disciplinary and non-disciplinary grounds. To protect employee rights, some grounds for dismissal are prohibited, including discriminatory grounds and violations of freedoms.

The termination notice period in France is either determined by a collective bargaining agreement, or is 1 month for employees employed for 6 to 24 months, or 2 months for employees employed for over 2 years.

The procedure for dismissal is as follows:

1. The employee receives a letter of invitation to a pre-dismissal interview.
2. The interview is held at least 5 working days after receipt to hear the employer’s explanation.
3. Between 2 working days and 1 month following the interview, the employee receives a letter of dismissal.

Severance pay is mandatory for most dismissals and is calculated based on tenure and salary, while notice periods are shorter during probation compared to standard termination.

Company registration in France

You can apply online to register a company in France. Depending on the type of company you’re registering, you need to obtain specific documentation. 

The types of companies you can register in France include:

• Limited Liability Company (LLC)
• Single-member company with limited liability (EURL)
• Simplified share business (SAS)
• Single-person simplified share business (SASU)
• Public limited company (SA)

Global PEO in France

A Professional Employer Organization (PEO) is not the same as an Employer of Record. PEO services are limited to domestic HR tasks, while EORs enable businesses to employ workers on a global scale and handle things like payroll, tax, HR, and compliance on their behalf. To use a PEO in France, you need an existing legal entity there.

However, the EOR model is not permitted in France, so you may use a workforce management platform instead.

If your U.S.-based business is looking to engage French talent, a workforce management platform in France may be able to offer assistance.

Discover Payoneer Workforce Management services in France

Payoneer Workforce Management helps businesses streamline hiring, paying, and managing local talent without the need to establish a local entity in 160+ countries, including France.

Book a demo to understand how Payoneer Workforce Management can help your business.

FAQs 

1) Is an Employer of Record legal in France?

The Employer of Record (EOR) model is not permitted in France. Businesses looking to engage French talent can use a workforce management platform, such as Payoneer Workforce Management, which assists with payroll, taxes, benefits, and compliance without requiring a local entity.

2) What are the benefits of a CDI contract in France?

A Contrat à Durée Indéterminée (CDI), or permanent employment contract, offers stability and legal protections for both employers and employees. Benefits include statutory leave (5 weeks annual leave and 11 public holidays), notice periods (1–2 months based on tenure), severance entitlements, and probation periods of 2–4 months depending on the role.

3) Does France do background checks?

Yes, background checks are permitted in France, but only after a conditional offer and with the candidate’s consent, in compliance with GDPR and the French Data Protection Act. Employers must also declare any automated screening tools to the French Works Council. Common checks include employment history, education verification, professional references, criminal record (Bulletin No. 3), and social media screening. Checks must be job-relevant and proportionate.