How to Hire Remote Employees In

France

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The Basics

Currency
Euro (EUR)
Employer Taxes
51%
Payroll Frequency
Monthly
Official Language
French
OVERVIEW

Employment in

France

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors

  • Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
  • Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
  • Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.

Disadvantages of Hiring Independent Contractors

  • Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
  • Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
  • Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
  • Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.
EMPLOYMENT IN
France

Set up a subsidiary in

France

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in France can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in France, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for France.

EMPLOYMENT IN
France

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Hire with Panther

Paying Remote Employees

Paying employees in France is not the same as paying workers in your own country. Employees have to be paid using France’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

France

 Specific Information

Working Hours

A full-time workweek is 35 hours.

Overtime

Overtime is work done beyond the weekly 35 hours. With an established agreement overtime pay must be no less than 110% of the regular wages. If no agreement is in place, overtime pay is 125% of the regular pay for the first 8 hours of overtime and 150% for every hour after.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Taxes

Payroll Tax

Employer

51% - Employer Contributions
- Employer Contributions

Minimum Wage

The monthly minimum wage is 1,554.58 EUR, or 10.25 EUR per hour.

Payroll

Pay Cycle

The payroll cycle is monthly. While there is no fixed date when salaries must be paid, it is common to pay employees at the end of the month. It is also possible to have a pay date outlined in a collective labor agreement.

13th Salary

13th salaries are not mandatory, however, sometimes are set by national or industry agreements and are usually paid out at the end of the year.

Leave

Paid Time Off (PTO)

After the first month of probation, employees are entitled to  5 weeks of annual leave. 

Public Holidays

There are 11 public holidays.

Sick Days

An employee must put in at least 150 hours of work in the past 3 months or 90 days immediately before the leave or have contributed based on earnings of at least 1,015  times the legal hourly minimum wage in the last six calendar months.  

A payment of 50% of the insured’s daily earnings is paid after a three-day waiting period. 

Maternity Leave

  • Single birth, bringing mothers number of children to one or two: 16 weeks (6 before birth, and 10 after)
  • Single birth, bringing mothers number of children to three or more: 26 weeks (8 before birth, 18 after)
  • Birth of twins: 34 weeks (12 weeks before, 22 weeks after) *
  • Birth of triplets or more: 46 weeks (24 weeks before, 22 weeks after)
  • If the mother suffers an illness during pregnancy, she is entitled to two additional weeks before birth, and four additional weeks after birth.

Paternity Leave

Paternity leave entitlement is 28 days, where at least 1 week is mandatory.  This leave also covers same-sex (female and male) couples. Employers are responsible for paying 3 days of the leave, while social security covers the rest.

Parental Leave

Employees who have worked for at least one year before the date of their child’s birth, (or before welcoming a child no older than 16 years to their home with a view to adoption) can take parental leave or choose to work part-time.

This right extends until the child’s third birthday, (unless the child was aged between three and 16 on arrival, in which case the adoptive parent can take one year’s parental leave from the date of arrival).

If employees take parental leave, their employment contract is suspended and the employer does not have to pay compensation. However, the employees can receive certain indemnities from the social security system.

Parents can also benefit from additional leave when their child is sick, which usually amounts to between three and five days depending on the child’s age and the parent’s number of children.

However, if the child suffers from a serious illness or disability, or an accident, which requires continuous parental presence or constraining care, the parents can take a specific leave of 310 days over three years.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

In France, it is not allowed to dismiss someone due to COVID-19.

Resignation: No specific labor code. Can be submitted verbally or written, however, it is advised to provide a written notice. A fixed duration of notice does not exist, but notice should always be given. Notice period is determined on contract, agreement, or practices by profession.

Mutual Termination: Employers and employees agree on termination conditions in permanent employment contracts.

Economic Dismissal: These are jobs cut due to economic or technological changes.

Individual Dismissal: A preliminary dismissal interview must be set up and take place. 2 days to a month after the meeting a letter of dismissal must be sent to the employee.

Notice Period

1 month for employment between 6 months and 2 years.

2 months for employment over 2 years.

3 months for executives.

Severance Pay

Calculations for severance pay depend on which payment provides the most favorable outcome.

Monthly average of last 12 months of employment;

Average monthly earnings of all months preceding dismissal;

1/3 of the last 3 months.

Probation Period

  • 2 months for blue-collar employees and clerks.
  • 3 months for technicians and supervisors.
  • 4 months for managers.