Using an employer of record in France

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

Wwith the help of an employer of record in France (EOR), it is simpler. EORs like Payoneer Workforce Management (WFM) help international businesses hire employees in France, taking care of legal onboarding and compliance, so that companies can scale across borders seamlessly.

Learn about Payoneer WFM’s EOR services in France, or read on to find out more about what a France Employer of Record does.

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. Working with an employer of record in France: This option is the most cost- and time-efficient, allowing you to hire workers in France without establishing a legal entity. An EOR in France handles legal and administrative tasks, like payroll, tax, and statutory benefits, while you run business operations as usual. 

Partnering with an employer of record in France

An employer of record is a third-party organization that legally employs workers on your behalf, allowing you to quickly and easily hire workers based in other countries. 

Examples of employer of record services include:

• Drawing up key employment documents and contracts
• Onboarding employees in line with local labor laws
• Running global payroll
• Managing country-specific benefit packages
• Supporting ongoing HR

France has strict legal protections for its employees. Leveraging a France EOR saves you from having to hire an expert in French law to stay compliant.

You also won’t need to set up a legal entity, making hiring and paying French employees as simple as hiring in your home country. 

Payoneer WFM offers EOR services in France, allowing U.S. businesses to hire French employees without hassle. 

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

Why not leave compliance to an Employer of Record in France so you can focus on providing your new hire with the best onboarding experience possible? 

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 11.88 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 also contribute to the social security system in France. This covers health, maternity, disability, death, unemployment, and more.

Payroll laws are tightly regulated in France. Employer of Record services make it clearer so you can pay employee wages while staying compliant.

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 overtime, capped at 220 hours per year. However, this doesn’t apply to senior executives.
Probation period	Probation is a maximum of 2 months.
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 11.88 per hour (roughly $13.85), which is equivalent :

• EUR 83.16 per day (~ $96.98)
• EUR 1,801.80 per month (~ $2101.32)
• EUR 21,621.60 per year (~ $25215.87)

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. An EOR in France will stay updated on changing regulations, like the minimum wage, on your behalf.

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 fulfillment 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
Maternity leave	Between 16 and 34 weeks, depending on how many children the mother already has and the number of births
Parental leave	3 working days of compulsory birth leave, immediately followed by 4 calendar days of paternity or childcare leave, then an optional further 21 days of paternity or childcare leave

The easiest way to track leave policy is through an EOR. 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. The easiest way to navigate the French work permit application process is with the help of an Employer of Record in France.

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 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.

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)

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.

If your U.S.-based business is looking to hire global talent, you’ll need EOR services. France is bursting with local talent ready to work for your company. 

Payoneer WFM: Offers leading employer of record services in France

Payoneer WFM offers employer of record in 160+ countries. France is just one of the countries that your business could expand into, where Payoneer WFM’s EOR services would take care of payroll, compliance, and more.

FAQs about the France employer of record 

1) Is an employer of record legal in France?

Yes, an partnering with an EOR service in France is legal. An EOR in France, like Payoneer WFM, acts as the legal employer on behalf of international businesses and manages the legal and compliance side of hiring.

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

Permanent employment contracts (CDIs) offer stability and security for both the employer and employee.

3) Does France do background checks?

Yes, it’s legally required for employers in France to run background checks. The most common include:

• Employment history check
• Educational verification
• Professional references verification
• Criminal record check (Bulletin No. 3)
• Social media screening