An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. The EOR handles payroll, benefits, taxes, and compliance with local labor laws, allowing businesses to hire and manage employees in France without establishing their legal entity.
Hiring workers from France offers several benefits due to the country’s highly educated workforce, strong talent pool, and position as the world’s seventh-largest economy. France is known for its modern infrastructure, leadership in various industries, and commitment to innovation, making it an attractive destination for foreign investment and expansion.
According to recent data, France ranks high in the World Bank’s Doing Business report and is considered one of the most promising markets for tech firms considering global expansion. However, the country also has strict labor laws and protective employment regulations that can pose challenges for foreign companies.
To effectively use an Employer of Record in France, follow these 6 steps:
- Find talent to hire in France
- Compare using an EOR to setting up a legal entity in France
- Get the information needed from your talent
- Choose an EOR provider with expertise in France
- Communicate your hiring needs to the EOR
- Have the EOR set up the contracts and hiring procedure
An EOR in France manages payroll processing, ensures compliance with tax regulations, and administers statutory benefits such as social security contributions and vacation time. They also handle the complexities of French labor laws, including working hours, overtime pay, and termination procedures.
When hiring remotely in France, it’s crucial to consider various labor laws. The country has protective employment regulations, including strict rules on employment contracts, working hours, and paid time off. France mandates a 35-hour standard work week, with overtime pay required for additional hours. Employees are entitled to a minimum of five weeks of paid vacation time per year, plus public holidays.
The hiring process in France typically involves identifying suitable candidates, conducting interviews, and ensuring compliance with local employment laws. Employment contracts must be in writing and include specific details such as job responsibilities, working hours, and compensation. The EOR facilitates this process, ensuring all legal requirements are met and managing the onboarding of new employees.
1. Find talent to hire in France
Businesses should explore a variety of channels to find talent to hire in France, emphasizing both local and global platforms to maximize reach. LinkedIn remains an essential tool for talent acquisition in France, allowing companies to search for active candidates and network with professionals.
Job posting websites like Indeed, Glassdoor and France-specific sites such as APEC, Cadremploi, and Meteojob offer avenues for employers to advertise openings. These platforms are popular among French job seekers, making them an essential part of a comprehensive recruitment strategy.
Specialized recruitment agencies can provide tailored solutions for industries requiring specific expertise, particularly in technical and STEM fields. These agencies manage the complexities of sourcing and vetting candidates, significantly easing the hiring process for companies.
Considering local job boards and regional networks can be advantageous for businesses focusing on hiring within specific regions or industries. France’s industrial activity is concentrated in certain areas, such as Paris for finance and technology, making a targeted search strategy crucial.
2. Compare using an EOR to setting up a legal entity in France
When working with employees in France, you should consider working with an EOR rather than setting up your own legal entity. An Employer of Record offers a quicker, less complex route to hiring local staff, bypassing the need for a formal company presence. This approach suits companies looking to test the French market or expand quickly without significant upfront investment.
An EOR manages all local employment laws, taxes, and compliance issues, assuming responsibility for the employees hired. This setup allows companies to start operations in days or weeks, compared to the months required to establish a legal entity in France.
On the other hand, setting up a legal entity in France offers greater control and the ability to customize business operations and policies. However, establishing a legal entity involves complex registration processes, significant upfront fees, and a deeper understanding of local laws and tax regulations.
In comparison, using an EOR is generally less expensive. It involves less risk, making it a suitable option for small to medium-sized businesses or those in the initial stages of market exploration. It eliminates the need for a local expert or dedicated legal and tax teams, as the EOR handles these aspects. However, it offers limited flexibility in tailoring employment contracts and benefits to specific company policies.
Comparison of Employer of Record (EOR) vs. Setting Up a Legal Entity in France
3. Get the information needed from your talent
You’ll need to collect essential personal information and employment details to hire employees in France. This typically includes:
- Employee’s full name
- Address
- Date of birth
- Social security number
- Bank account details for salary payments
- Comprehensive job description, including title, duties, and place of work
Employment contracts in France must be provided in writing, detailing the contract type, start date, salary, work hours, and other employment conditions. The contract should be in French and include all terms and conditions of employment, including benefits and entitlements.
It’s important to note that in France, collecting this data before the employee starts working is crucial for compliance with local labor laws and regulations.
4. Choose an EOR provider with expertise in France
When choosing an EOR provider to work with in France, selecting one with deep expertise in the French market and a strong understanding of local labor laws is crucial to ensure compliance and smooth business operations.
Evaluate the provider’s experience managing employee onboarding, payroll, and legal compliance in France. Look for a provider with a proven track record of working successfully with companies similar to yours, and check their reputation through client case studies or reviews.
Assess the range of services offered to see if they align with your needs, such as visa and work permit support, employee benefits management, and payroll processing. It is important to choose a provider that offers comprehensive employment services and is flexible enough to adapt to changes in French labor laws.
Consider the provider’s technology and platforms, ensuring they offer secure, user-friendly systems with strong data protection measures. Evaluate their pricing models, looking for transparency in fees, whether they charge a fixed monthly fee or a percentage of the employee’s salary, and assess the cost-effectiveness for your business.
Finally, choose an EOR provider that demonstrates a commitment to staying up-to-date with French employment laws and can provide proper guidance and support to ensure your business remains compliant while operating in France.
| EOR Provider | Why It’s a Good Fit for France |
|---|---|
| Deel | – Extensive global coverage including France – Automates tax document collection, payroll, and benefits – Ensures compliance with French labor laws and collective bargaining agreements |
| Remote | – Strong focus on compliance with French employment laws – Offers comprehensive benefits management, crucial for meeting France’s statutory employee benefits requirements – Provides robust data security and IP protection |
| Rippling | – Simplifies global employment with native payroll software for France – Handles French payroll, tax, and compliance considerations – Authorized payroll provider by French tax authorities |
| Multiplier | – Handles payroll, taxes, benefits, and compliance in France – Facilitates quick market entry and scalability in France’s dynamic business landscape |
Also see our overview of the Best Employer of Record in France.
5. Communicate your hiring needs to the EOR
It’s important to communicate your hiring needs to the EOR to ensure the process aligns with company goals and legal requirements. Provide a detailed job description, including title, responsibilities, required qualifications, and skills.
Specify the job’s expected start date, location, and whether it’s remote or onsite. Outline the proposed salary, bonuses, commission structures, and other compensation benefits. Clarify the contract length, whether permanent or fixed-term and detail the working hours, including any flexibility or shift requirements.
Discuss the company culture, growth plans, and how the position fits into future expansion. Specify equipment needs and onboarding procedures. By accurately representing these aspects, the EOR can find the right talent and ensure legal and administrative compliance.
Additionally, communicate any specific requirements related to French labor laws, such as the need for contracts in French or any industry-specific regulations that may apply to your business.
6. Have the EOR set up the contracts and hiring procedure
Once you have chosen which provider to work with and communicated your hiring needs, the EOR will set up the contracts and hiring procedure, ensuring compliance with local labor laws and employment practices.
The EOR will draft employment contracts that comply with French labor laws, including specific terms regarding job details, working hours, and termination procedures. They’ll also manage the necessary documentation for tax, social security, and payroll setup, adhering to mandatory withholdings and reporting requirements.
The EOR also registers employment with relevant French authorities, such as the French Social Security Fund (Sécurité Sociale), to ensure the company is properly licensed and authorized to operate and hire employees in France.
They’ll ensure your company complies with collective bargaining agreements, if applicable, and adjust contracts and practices as laws and agreements change. Additionally, the EOR administers benefits and handles formal onboarding, including the introduction to company systems and culture.
What help does an EOR provide in France’s payroll, taxes, and benefits administration?
The EOR will support all of France’s payroll, taxes, and benefits administration, ensuring compliance with complex local laws. It calculates and processes employee salaries, withholds the correct tax amounts, and handles social security contributions.
The EOR manages payslips that reflect mandatory withholdings for income tax and social insurance, adhering to French regulations. It files monthly and annual tax returns with French authorities, including the Directorate General of Public Finance (Direction Générale des Finances Publiques), and manages municipal tax requirements.
For benefits, the EOR enrolls employees in statutory programs, such as the national health insurance system (Sécurité Sociale), and administers supplemental benefits like private health insurance (mutuelle). It manages statutory paid time off and sick pay and ensures the correct accrual and payout of vacation and severance pay in line with the French Labor Code.
The EOR also handles the mandatory 13th-month salary, which is common in France, ensuring it’s paid out correctly as per company policy or collective bargaining agreements.
What labor laws do you need to consider when hiring in France?
When hiring in France, a few key labor laws must be considered. France’s approach to labor laws is generally protective, offering extensive employee protections considered more stringent than those in many other countries.
| Law / Regulation | Key Points |
|---|---|
| Employment Contracts | Must be in writing, in French. Specify job details, salary, working hours, and termination conditions. |
| Working Hours | Standard work week is 35 hours. Overtime has specific compensation rules. |
| Paid Time Off | Minimum 5 weeks of paid annual leave plus 11 public holidays. |
| Taxes | Income tax rates from 0% to 45%. Employers contribute significantly to social security. |
| Termination and Severance | Strict regulations. Notice periods vary by length of service. Severance pay mandatory for employees with at least one year of service. |
| 13th Month Salary | Common practice, paid according to company policy or collective agreements. |
| Social Security | Employers must register employees with the French Social Security system. |
| Probation Period | Typically up to four months for executive employees. |
| Collective Bargaining Agreements | Often play a significant role in determining employment conditions. |
National labor laws govern employment contracts in France and must specify job details, including position, duties, working hours, salary, and termination conditions. These contracts are typically in writing and provide a clear agreement between employer and employee.
France offers various types of employment contracts, including:
- Permanent Contracts (Contrat à Durée Indéterminée – CDI)
- Fixed-Term Contracts (Contrat à Durée Déterminée – CDD)
- Part-time Contracts
- Temporary Contracts
Key elements of an employment contract in France include the starting date, notice periods for termination, and details on probationary periods, which typically last up to four months for executive employees.
Working hours and paid holidays
In France, the standard workweek is 35 hours. Work beyond this is considered overtime, with specific rules for compensation. Employees are entitled to a minimum of five weeks of paid annual leave and 11 public holidays.
France also mandates rest periods during and between workdays, ensuring employees have adequate time off.
Taxes
Individual income tax rates in France range from 0% to 45% based on income levels. Employers contribute significantly to social security, with rates varying based on the type of benefit and the employee’s salary level.
Employers’ mandatory contributions include payments to the French Social Security system for health insurance, pensions, and other social benefits.
Termination and severance pay
In France, termination procedures are strictly regulated. Notice periods vary depending on the employee’s length of service and position. For permanent contracts, employers must have a real and serious cause for dismissal.
Severance pay is mandatory for employees with at least one year of continuous service, unless the termination is due to gross misconduct. The amount of severance pay is calculated based on the employee’s salary and length of service.
How does the hiring process work in France?
When hiring staff in France, employers must follow a structured process and adhere to national labor laws and regulations. Initially, they identify the vacancy and define the job’s requirements. They advertise the position through various channels to reach a wide pool of candidates.
Interested individuals submit their applications, which the employer reviews to shortlist qualified candidates. These candidates then undergo interviews and, in some cases, testing to assess their suitability for the position. Employers may also conduct background checks and request references to verify the candidates’ qualifications and experience.
Upon selecting a candidate, the employer issues a formal job offer detailing the role’s terms and conditions. If the candidate accepts, both parties sign a contract that must comply with French employment law and specify salary, working hours, and job responsibilities.
Before the new hire starts, the employer must complete mandatory administrative tasks, including registering the employee with the French Social Security system and other relevant authorities. The employer must also ensure all necessary documentation, including work permits for non-EU citizens, is in order.
Is France a relatively easy country to hire employees remotely through an EOR?
Yes, France is generally considered a relatively easy country to hire employees remotely through an Employer of Record. The country’s stable political environment, well-educated workforce, and modern business infrastructure make it an attractive destination for remote hiring.
Pros
Cons
France’s labor laws, while protecting employees, are clear and well-established, making compliance manageable with the help of an experienced EOR. The country’s high level of digital connectivity and familiarity with remote work practices, especially in urban areas and among professionals, facilitates communication for international companies.
However, while hiring through an EOR in France is relatively straightforward, employers still need to be mindful of the country’s strict labor laws, including those related to working hours, overtime, and employee benefits. An experienced EOR can navigate these requirements effectively, ensuring compliance while simplifying the hiring process for foreign companies.
In conclusion, France’s combination of a skilled workforce, favorable business environment, and established legal framework makes it a viable option for companies hiring remote employees through an EOR, provided they partner with a knowledgeable and experienced EOR provider.
