Explore our EOR & PEO services in FRANCE

As your EOR inÂ France, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.

Your candidate is hired by a PEO in FranceÂ provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.

Western Europe

Country Overview

France is a country in Western Europe known for its rich history, culture, and diverse landscape. It has a population of over 67 million people, and its capital is Paris, named as the City of Love and is famous for its iconic landmarks such as the Eiffel Tower and the Louvre Museum.

The French economy is one of the largest in the world and is diverse, with industries ranging from agriculture and tourism to technology and aerospace. France stands high for its standards of living, excellent healthcare system, and strong social welfare programs. You can always calculate payroll sum in France with our Payroll Estimator.

General Information

Population: ~64.000.000

Capital City:Â Paris (population: ~2.200.000)

GDP:Â ~$3 trillions

GDP per capita:Â ~$46.000

Currency: Euro (EUR)

Unemployment:Â ~7.2%

Employer Taxes: 29.50% – 31.30%

Employee Taxes: 0% – 45%

FRANCE EOR SPECIFICS

Employment Contracts in France

In France, employment contracts are a legal requirement for all employees. If you have any staff working for you – you must provide them with a written employment contract.

Now, when it comes to the specifics of these contracts, you need to include the employee’s start date, job title, duties, and responsibilities. You’ll also need to specify: their working hours, salary or hourly rate, and any benefits they may be entitled to, such as vacation time, sick leave, or health insurance.

Probation Period in France

Probation period in France it’s a trial period at the beginning of an employment contract where both the employer and employee can assess: whether they’re a good fit for each other.

The employment contract can be terminated during the probation period without notice or compensation. However, there are some rules you need to keep in mind. The probation period cannot be longer than:

Two months for non-executive employees
Three months for executive employees

It’s also important to note that the probation period cannot be extended, and once it’s over, the employment contract becomes permanent.

During the probation period, you’ll need to give your employee specific targets and goals to reach. This will help you assess their skills and abilities. If the employee does not meet these targets – you can terminate their employment contract without notice or compensation.

However, you’ll also need to provide your employee with support and training during probation. This will help them meet their targets and will give them a better chance of becoming valuable members of your team.

Working Hours in France

In France – full-time employees’ legal maximum working week is 35 hours. This means that your employees can work up to 35 hours per week unless you have a specific agreement in place with them.

It’s also important to note that employees are entitled to at least 11 hours of rest between each working day. If your employee finishes work at 9 pm, they can start work again at 8 am.

In addition: employees are entitled to a minimum of 24 hours of rest per week meaning they must have at least one full day off per week.

Employees who work more than the legal maximum of 35 hours per week are entitled to overtime pay. This is usually calculated as time and a half for the first 8 hours of overtime and then double time for any additional hours worked.

Vacation Days in France

In France, employees have at least five weeks of paid vacation time per year. This means that employees who work a 5-day week are entitled to 25 days of vacation time per year.

Employees can take up to 20 days of vacation from one year to the next. However – any additional vacation time must be used within the current year.

If your employee becomes sick while on vacation, they can take sick leave instead of vacation time. In this case they must provide a medical certificate from a doctor. And, vacation time cannot be replaced by a cash payment, except in the case of termination of employment.

If your employee from France EOR wants to take vacation time – they must give you notice in advance. The notification length required will depend on your company’s policies and procedures, but it’s typically around one month.

Sick Leave in France

Sick leave is taken if employees cannot work due to illness or injury. During sick leave, the employee will continue to receive a portion of their salary paid by their employer or social security.

The length of sick leave an employee is entitled to will depend on their specific circumstances, but in general employees are entitled to take up to 90 days of sick leave per year. After this time, they may be entitled to additional sick leave if they have a severe medical condition.

If your employee needs to take sick leave, they must provide a medical certificate from a doctor. This should state the length of time that the employee is expected to be off work, as well as any specific restrictions or accommodations that may be required.

And, during sick leave, the employee is protected from termination of employment. This means – you cannot terminate their employment while on ill leave unless there are exceptional circumstances.

Wages and Salary Payment in France

Employees receive their salary at least once a month, and the exact payment schedule will depend on your company’s policies and procedures. Still, ensuring that your employees receive their compensation on time, as agreed in their employment contract, is essential.

It’s also worth noting that the minimum wage in France is €11.07 per hour as of January 2022. You cannot pay your employees less than this amount unless they work in a specific industry with its wage regulations.

In addition to their regular salary, employees may be entitled to bonuses or other forms of compensation, such as meal vouchers or transportation subsidies. These should be clearly outlined in the employee’s contract and paid according to the agreed schedule.

Keeping accurate records of your employees’ salaries and any additional compensation is essential. This will help you ensure that you are complying with French labor laws, as well as help you manage your budget and cash flow.

Finally, it’s worth noting that your employees have the right to challenge their salary if they feel they are not being paid fairly. Suppose you receive a complaint or request for a salary increase. In that case, it’s essential to handle it fairly and respectfully and work with your employee to find a mutually agreeable solution.

Public Holidays in France

In France, there are 11 public holidays each year. These holidays are:

New Year’s Day (1 January)
Easter Monday (date varies each year)
Labor Day (1 May)
Victory in Europe Day (8 May)
Ascension Day (date varies each year)
Whit Monday (date varies each year)
Bastille Day (14 July)
Assumption Day (15 August)
All Saints’ Day (1 November)
Armistice Day (11 November)
Christmas Day (25 December)

Employees get the day off work on these public holidays. If an employee is required to work on a public holiday, they must be compensated with either additional pay or an additional day off.

Public holidays can fall on different days of the week each year. This can affect your business operations and scheduling, so planning and communicating with your employees is essential.

In addition to public holidays, many French businesses close during the summer months for a period known as “les grandes vacances.” This typically runs from mid-July to the end of August and is an important time for families to take vacations and spend time together. During this time, adjusting your business hours or operations may be necessary.

Employer Taxes in France

As an employer in France or France EOR, you are required to pay various taxes and contributions on behalf of your employees. These include:

Social Security: provides healthcare, pensions and other benefits to employees.Â
Unemployment insurance: provides financial assistance to employees who lose their jobs. You must pay approximately: 4% of your employees’ gross salaries in unemployment insurance contributions as an employer.
Occupational health and safety contributions: These contributions fund the French occupational health and safety system, which aims to protect workers from accidents and illnesses in the workplace.

In addition to these contributions – there are also taxes on salaries and other employment-related expenses that you must pay as an employer. For example, you may be required to pay a tax on company cars or training expenses.

The exact amount of employer taxes you will need to pay depends on several factors, including the size of your business, the industry you are in, and your employees’ salaries. It’s essential to work with a qualified accountant or tax professional to ensure you meet all of your obligations and pay the correct taxes.

Employee Taxes in France

As an employee in France, your employees must pay various taxes and contributions to their salaries, these include:

Income tax: All employees in France are subject to IT which is calculated based on their annual salary. The exact amount of the tax an employee will need to pay depends on their income bracket, with rates from 0% to 45%
Social Security contributions: Like employers, employees in France must also pay to the French social security system, which provides healthcare, pensions and other benefits. The social security contributions an employee must pay are around 22% of their gross salary.
Other contributions: Employees in France may also be required to pay additional costs, such as unemployment insurance, occupational health safety, and training.

These taxs and contributions are generally deducted directly from employees’ salaries by their employers. As an employer: you will need to ensure that you are withholding the correct amount of taxes and contributions from your employees’ paychecks.

You have to provide your employees with a clear and transparent breakdown of their salary and deductions, so they understand how their pay and take-home pay are calculated.

Notice Period in France

When terminating an employment contract in France, the employer, and the employee must give notice unless otherwise specified. The length of the notice period depends on several factors, including the size of the employee’s service with the company and the reason for termination.

In general, the notice period for employees is as follows:

The notice period is one week for those with less than six months of service.
For those with six months to 2 years of service, the notice period is one month.
For those with 2 to 8 years of service, the notice period is two months.
For those with more than eight years of service, the notice period is three months.

It’s important to note that some collective bargaining agreements or individual contracts may specify more extended notice periods.

Employers are generally required to give longer notice periods than employees. The period for employers depends on the number of employees being terminated, as follows:

For less than 11 employees, the notice period is one month.
For 11 to 49 employees, the notice period is two months.
For 50 or more employees, the notice period is four months.

Again, some collective bargaining agreements or individual contracts may specify longer notice periods.

During the notice period, the employee is typically required to continue working, and the employer is required to continue paying the employee. However, the employer may also choose to release the employee from their duties during the period and deliver them in lieu of notice.

Termination / Severance for France EOR

When an employment contract is terminated in France, certain procedures and requirements must be followed. Depending on the circumstances of the termination the employer may be required to provide severance pay to the employee.

The employer must provide a severance payment if the employee is fired due to redundancy or economic reasons. The amount of the severance payment depends on the length of the employee’s service with the company, as follows:

For those with less than one year of service, the severance payment is typically 1/5 of a month’s salary.
For those with 1 to 10 years of service, the severance payment is typically 1/4 of a month’s salary for each year of service.
For those with more than ten years of service, the severance payment is typically 1/3 of a month’s salary for each year of service.

However, it’s important to note that some collective bargaining agreements or individual contracts may specify different severance pay requirements.

In addition to severance pay: the employer may have to provide notice to the employee or pay them in lieu of notice, as discussed in my previous message.

If the employee is terminated for reasons other than redundancy or economic reasons, such as misconduct or poor performance – severance pay is typically not required. However, following the correct procedures and ensuring the termination is not discriminatory or unfair.

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