Hiring in France
A hub for innovation, research, and development, France is a top destination for multinational companies hiring remote employees or looking to expand their workforce into the European Union. However, its labor regulations can be complex.
Employment relationships in France are governed by such laws as the French Labour Code, along with subsequent amendments and collective bargaining agreements. These laws outline workers’ rights, employer obligations, and procedures for labor disputes. Additionally, French law places specific regulations on the use of temporary and agency workers.
Employers must ensure that these arrangements comply with legal requirements and that agency workers receive equal treatment in terms of compensation and working conditions. Compliance with statutory requirements such as minimum wage standards, social security contributions, and working time regulations is essential.
Because of the complexity of France’s labor and tax laws, compliant employment contracts are a critical business requirement. With Safeguard Global as your partner, you can hire employees in France with confidence, knowing that every contract meets legal standards. We also provide guidance on cultural expectations and hiring best practices, while helping you stay current with regulatory changes.
Relying on an employer of record (EOR) in France
An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in France. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with France’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in France.
The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.
Visit our Employer of Record services page to learn how we can help you meet your international employment needs in France.
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How to hire in France
Expanding your business into new international markets is a great way to experience opportunities for growth and innovation. France, known for its robust economy, strategic location, and skilled workforce, offers a compelling case for foreign companies looking to establish a presence in Europe. From the country’s strong labor laws that protect both employers and employees, to its diverse and highly educated workforce, France offers a unique environment where your company can thrive.
Employers considering how to hire in France from another country will need to understand the local labor laws. Companies have three main options for hiring workers abroad:
- Hire directly through your own French entity
- Hire through a global PEO
- Hire and pay independent contractors
Each method of hiring depends on the overall strategy and goals of your organization. We understand the complexity of international hiring and will guide you through the process of accessing the French talent pool.
Hiring workers in France
When hiring foreign workers, businesses need to determine their short- and long-term goals, timelines, and budget limitations. Understanding your market and hiring requirements will ensure you have greater success with your global expansion objectives.
1. Hire directly through your own French entity
Establishing a legal entity gives your business full control when hiring part- and full-time employees in France. With the incorporation process usually only taking about two weeks, and the cost at around €3,600, France is considered a more business-friendly country. The entire documentation process may take longer after the subsidiary is set up, but businesses can begin operating right away. Hiring French workers directly ensures you have greater stability and control for long-term success.
Related: 7 questions about international entity setup, answered
But hiring directly comes with its fair share of challenges. Companies that establish their own entity are accountable to all local labor laws and collective bargaining agreements (CBAs). Before you dive in and build a workforce in France, make sure you are compliant with all HR and payroll requirements to avoid expensive fines and penalties. For those that don’t have the resources to support foreign employees, in-country partners can provide additional support.
Related: Pros and cons of doing business in France for global companies
Incorporation is viewed as a more traditional route for international expansion. It may be more costly or time-consuming than other hiring strategies, but it offers a firm foundation for growth.
2. Hire through a global PEO
A professional employer organization (PEO) is a simple way to hire foreign workers without having to worry about compliance. Global PEOs, also called an employer of record (EOR), complete all the administrative tasks on your behalf. Companies can leverage an existing network of legal entities to hire employees without all the extra complexity of French regulations.
While you focus on the daily tasks of your employees, PEOs handle things like HR, onboarding, payroll, benefits, and compliance. Companies can hire employees much faster, which is why it has become such a popular alternative to establishing their own entities. It allows you to test new markets with the flexibility to scale operations based on data-driven results.
Partnering with a global PEO to hire in France enables companies to build a remote workforce quickly. This is often a necessary first step before committing to a long-term expansion strategy like entity establishment.
3. Hire and pay independent contractors
Many employers choose to hire international contractors because they aren’t required to pay benefits or taxes. France has a large freelancer workforce of 3.2 million contractors, which is approximately 10% of the EU’s 33 million freelancers. Employers hire contractors for short-term or project-based jobs as a fast and flexible hiring solution.
Related: International contractor vs. employee: Understanding the difference
However, just because you don’t have to pay taxes or benefits doesn’t mean there isn’t any risk. Businesses still need to understand French employment classifications before hiring a contractor. For example, employers will need to ensure a fixed-term employment contract is signed before they can start working with a French contractor.
Related: Guide to paying foreign contractors
Hiring a contingent workforce in France is cost-effective as long as you avoid worker misclassification risks. Violating these employment laws will result in back pay, back taxes, civil lawsuits, and other legal penalties.
FAQs for how to hire in France
Hiring overseas can be a major challenge. If you’re planning to expand into France, here are some common questions to be aware of before you go. Understanding and complying with French employment law is necessary for success in the market.
Are the working hours different in France?
Yes. Unlike the U.S., the standard work week in France is only 35 hours. This can have a significant impact on overtime requirements, which is 150% of regular pay. However, even with overtime, employees are limited to a maximum of 48 hours per week. Additionally, CBAs cover 95% of employees across France that require even more benefits than employment law dictates.
What are all the available leave requirements?
Annual leave: Employees are entitled to 25 days paid annual leave, not including any additional CBA provisions.
Sick leave: Depending on how long the employee works for a company, employees receive paid sick leave for up to three years at 50% regular pay.
Maternity leave: The leave for mothers can range between 16 to 46 weeks of paid maternity leave. The exact number depends on the number of existing children they have, and whether they give birth to twins or triplets.
Paternity leave: Parental leave for new fathers receive 28 days of paid paternity leave, or 32 in the case of twins or triplets. This includes both the birth or adoption of a child.
Public holidays: There are 11 public holidays in France, plus additional regional and departmental holidays. However, most of these days do not require payment by law, so it’s important to check the CBA for additional requirements.
What if I want to terminate an employee in France?
Employers are allowed a probationary period with their employees, between two and four months, depending on the employee’s position and relevant CBA provisions. This provides protections to both parties as they determine if the role is a suitable fit. Once a company passes this point in the employment relationship, they will be subject to termination and severance laws.
For terminations, businesses must provide a notice anywhere from one to three months in advance, depending on the specific CBA provisions. However, if employers want to forgo the notice period, they can provide the employee pay in place of the notice.
When it comes to severance, employers pay 25% of the employee’s monthly salary for each year of service for the first 10 years. Anything after that is 33% of the salary for each additional year. It’s important to check on the specific CBA requirements to determine if the employee is entitled to more compensation.
How to hire employees in France with Global PEO Services
The French market is bursting with new talent and opportunities for growth. We have the experience and expertise to help you navigate complex international employment laws to expand your workforce. Global PEO Services, a Safeguard Global company, simplifies your expansion strategy and empowers you to focus on hitting your growth objectives.
We handle all the onboarding, payroll, HR, benefits administration, taxes and compliance. No matter what your hiring needs are, we can help you quickly and cost-effectively acquire the best workers in France. Speak with one of our global business advisors today to learn more.
HR & Benefits in France
Your Employees, Our HR
Get the HR support you need in France without setting up a legal entity or hiring HR personnel. Save time and enjoy peace of mind as our experts manage all aspects of your France HR.
France Recruitment Solutions
Need help finding talent? Our dedicated team of experienced recruiters can help you find and hire the employees you need, fast. We have an in-depth understanding of local job markets and provide you with access to exclusive talent networks, so you are always choosing from the best available candidates.
A solution for every staffing need:
- Contingent Hire
- Permanent Hire
- Recruitment Process Outsourcing (RPO)
Best in Class Employee Benefits
We provide high-quality benefits packages for your employees and their families. Our robust heath and benefits plans are designed to enhance local mandatory benefits while addressing employee expectations and cultural nuances.
Our employee benefits plans include:
- Top of the line health benefits (medical, dental, vision)
- Life insurance and short-term / long-term disability
- Employee assistance program – phone/online counseling & support
- Employee wellness program – health & wellness classes
- Business travel insurance
Guaranteed HR Compliance
Stay compliant without the complexity. Our experts manage the HR compliance requirements for your France teams and consistently monitor changes to labor laws so you are always informed and up to date.
Payroll in France
Pay Employees Without the Hassle
Pay employees in France without setting up a legal entity. Get peace of mind as we manage all aspects of your France payroll, ensuring your employees are always paid accurately, on time, and in their local currency.
Cross-Border Payments & Payroll Compliance
Run compliant payroll in France no matter where your business is located. Our France payroll experts get you set up fast and ensure you are always in compliance with local payroll requirements.
Struggling to Manage Payroll for Independent Contractors?
Pay your contractors easily and without the risk. Rather than taking on the liabilities associated with employing an independent contractor, we allow you to hire them as employees through our France PEO. They continue to work for you, while we manage all aspects of payroll, HR, and compliance.
The Solution to Low Headcount Payroll
Eliminate complexity and reduce the cost associated with running payroll for just a few employees. With Global PEO Services, you gain full access to our pre-existing France payroll infrastructure, teams, and processes. Stay flexible, save time, all while getting the payroll services and support you need.
Payroll & PEO in France
France Payroll Outsourcing & Management Services
Hire and pay employees in France without setting up a legal entity. With our France payroll and PEO services, you select the candidate, and we handle the rest.
After successfully hiring and onboarding your employees, we manage all aspects of the payroll process, ensuring your employees are always paid accurately and on time.
Our France payroll experts have an in-depth understanding of local payroll requirements and provide you with in-depth guidance and compliance support.
Our France PEO Payroll Solutions Cover:
Struggling to Manage Payroll for Independent Contractors?
Global PEO Services eliminates the complexity and liabilities associated with employing and paying independent contractors. We allow you to hire your contractors as employees through our France PEO. The individual continues to work for you, while we manage all aspects of payroll, HR, tax, and compliance.
The Solution to Low Headcount Payroll
Finding a payroll option for countries where you have low headcounts can be a challenge. Global PEO Services provides the solution. By using our France PEO to manage your payroll, you leverage our pre-existing payroll infrastructure, teams, and processes, even if you only need payroll for just one employee. Stay flexible, save time, all while getting the payroll services and support you need.