IRC HR SERVICES

Employer of Record (EOR) in France

Currency

Euro

Ease Of Doing Business

32

Population

65,633,793

Capital

Paris

Language

French

GDP Growth

6.8%

Summary

France, officially the French Republic, is a country in Western Europe that consists of metropolitan France as well as several overseas regions and territories.

From the Rhine to the Atlantic Ocean, and from the Mediterranean Sea to the English Channel and the North Sea, France’s metropolitan area stretches.

French Guiana in South America, as well as numerous islands in the Atlantic, Pacific, and Indian Oceans, are among the overseas territories. In the northeast, France is bordered by Belgium, Luxembourg, and Germany; in the east, Switzerland, Monaco, and Italy; in the south, Andorra, and Spain; and in the Americas, the Netherlands, Suriname, and Brazil.

The eighteen integral regions of the country cover a total area of 643,801 km2 and have a population of 67.4 million people. France is a unitary semi-presidential republic with Paris as its capital and most im- portant cultural and commercial center.

Lyon, Marseille, Toulouse, Bordeaux, Lille, and Nice are among the other major cities. With a total of twelve time zones, France, including its overseas terri- tories, has the most of any country.

The Gaul’s populated what is now metropolitan France during the Iron Age. In 51 BC, Rome an- nixed the area, resulting in the creation of a distinct Gallo-Roman culture that laid the groundwork for the French language.

In 476, the Germanic Franks arrived and founded the Kingdom of Francia, which became the Carolingian Empire’s heartland. The empire was partitioned by the Treaty of Verdun in 843, with West Francia becoming the Kingdom of France in 987.

France was a highly decentralized feudal monarchy in the High Middle Ages, with the king’s authority hardly felt. King Philip Augustus was a remarkable success in consolidating royal authority and expanding his empire, more than doubling its size and crushing his opponents. By the end of his reign, France had risen to become Europe’s most dominant country. T

he Hundred Years’ War saw French monarchs engaged in a series of dynastic wars with their English counterparts in the mid-14th century, from which they eventually emerged victorious. During the Renaissance, there were conflicts with Spain and the Holy Roman Empire. Meanwhile, French culture flourished, and a global colonial empire was created, which would become the world’s second largest by the twentieth century.

Religious civil wars between Catholics and Protestants dominated the second half of the 16th century, severely weakening the nation.

Following the Thirty Years’ War, France re-emerged as Europe’s dominant cultural, political, and military force in the 17th century under Louis XIV.

Despite the country’s riches, the kingdom was left in a precarious economic condition by the end of the 18th century due to an insufficient financial model and inequitable taxation structure, as well as endless and expensive wars.

The Seven Years’ War and the American War of Independence were particularly expensive.

Public holidays

DateHoliday name
January 1New Year’s Day
April 7Good Friday
April 10Easter Monday
May 1Labor Day
May 8Victory in Europe Day
May 18Ascension Day
May 28 & 29Whit Monday
July 14Bastille Day
August 15Assumption of Mary
November 1All Saints’ Day
November 11Armistice Day
December 25Christmas Day
December 26St Stephan’s Day

Type of leave

Annual Leave:

Employees are entitled to 30 days of annual leave (working days – jours ouvrables). They acquire the days at a rate of 2.5 vacation days per month, but employers may agree to anticipate the days.

Public holidays

France recognizes 12 public holidays.

Sick days

The maximum duration of compensation is set at 180 days (90 days at 90% and 90 days at 2/3 of the previous salary). The additional compensation is paid from the 8th day of absence due to illness.

Maternity leave

French mothers can receive up to 26 weeks of leave

Mothers are granted a minimum of 16 weeks of parental leave. Mothers are required to take at least eight weeks of leave. In the event of a complicated pregnancy, mothers are granted an extra two weeks of leave before birth and up to four additional weeks after birth.

Paternity leave

Fathers living in France have the right to one month of paternity leave.

Employment termination

Termination process

In France, it is illegal to dismiss someone for violating COVID-19.

Although there is no specific labor regulation governing resignation, it may be made verbally or in writing; however, it is  recommended to provide written notice. Although no specific  period of notice exists, notice should always be given. The  notice time is determined by contract, agreement, or profession-specific practices.

Employers and employees agree on termination criteria for  permanent employment contracts when they mutually terminate.

Economic dismissal is a term that refers to employment losses  caused by economic or technological advancements.

A preliminary dismissal interview must be scheduled for individual dismissals. Within two days to one month of the employee’s termination, the employee must get a letter of dismissal.

Notice period

The notice period is set by the applicable collective bargaining agreement and the Labor Code, and generally lasts between one and three months

Severance pay

Employees receive statutory severance pay (that is, one fourth of their monthly salary for each year of service for the first ten years of service and one third for each year above ten years of service) if no CBA applies or the CBA rate is lower than the statutory amount.

Probation period

Probation periods are standard in France and will usually last between one to three months. For more senior positions, three months is more likely to occur. Depending on the collective bargaining agreement, the probation can extend up to five months.

Working hours

General working hours

The standard workweek is 35 hours, with a weekly  maximum of 48 hours, and an average of no more than 44 hours over a 12-week period.

Contractual or  collective bargaining agreements may allow for an  increase in the 12-week average to 46 hours per  week. The working day cannot exceed ten hours,  although a contract or collective bargaining agreement  may allow for an extension to twelve hours.

Certain executives and white-collar employees are exempt from these restrictions. While the majority of other employees may be required to work more than 35 hours  per week, they must be compensated for the additional  hours, which is typically done through additional vacation time.

In practice, due to the mid-day break, the standard French workday is actually longer than in many other  countries, typically beginning between 8:00 and 9:00 AM and ending at 6:00 PM or later, with an hour-long  or longer break between roughly 12:30 and 2:00 PM.  

Employees must take a minimum of 35 consecutive hours of rest over a seven-day period.

Overtime

Overtime is limited to 220 hours per year, and the workweek is limited to 48 hours, including overtime, which is compensated on a percentage of income basis.

A collective bargaining agreement may establish a higher or lower rate of overtime.

Night work is defined as work performed between the hours of 9 p.m. and 6 a.m.

Night work hours are determined by collective bargaining but cannot exceed eight hours in a 24-hour period or 40 hours on average over a 12-week period.

Outside of standard office hours, employees in France have the “right to disconnect”, which includes not checking, answering, or sending emails.

Employee benefits

General employee benefits

The French health-care system is largely funded by the government’s national health insurance, and the  country is regarded as having one of  the best overall health-care systems in the world.  In general, the government reimburses patients 70% of their health-care  costs, and 100% in the case of expensive or long-term illnesses. All residents are required to have health insurance, and the premiums are deducted automatically from employees’ pay.  

Employers must provide private health insurance to employees beginning  January 1, 2016, in addition to the French Social Security healthcare  reimbursements. The amounts are determined  by the  applicable collective bargaining agreement for each branch (CBA).  

Prior to 2018, all PEO, consulting, and technology firms were subject to  the SYNTEC CBA. This has since been replaced by the portage salarial  CBA, under which the employer is responsible for 50% (or €23.50) of the  base coverage of €47 per month in 2017 and the employee is responsible for the remaining 50%.

The cost includes coverage for  dependent children, but  not  coverage for an unemployed spouse or partner.  

Employees can add higher levels of coverage and/or coverage for their  spouse/partner for a monthly fee of up to €77, which will be deducted  from their net  pay (the  additional cost is solely the  employee’s  responsibly.

Employees may refuse coverage if they were employed by the organization prior to January 1, 2016, if they are already covered by their  spouse’s mandatory coverage and can provide proof of this yearly, or if  they  are under a fixed-term  employment  contract for  a period of no more than 12 months.

Taxes

Corporate Tax

As a general rule, the standard corporate tax rate is 25%

Individual Income tax

45 %

VAT / GST

Around 20 %

VISA

In France, there are two types of visas: a short stay visa (visa de court séjour), which is required for visits of 90 days or less, and a convention d’accueil, for which the employer applies to the French Ministry of Labor, the DIRECCTE (Direction régionale des entreprises, de la concurrence et de la consommation, du travail et de l’emploi), and the authorization is then sent to the French embassy.

A work permit is not required if the employee is from the EU/EEA or Switzerland.

A long-term work visa (visa de long séjour) also serves as a residency permit. The work contract is sent to the French Ministry of Labor’s local division for approval. Once authorized, it is sent to the Office Francais de l’Immigration et de l’Intégration (OFII) for secondary review.

Once authorized, the contract is submitted immediately to the French embassy in the employee’s home country. After 18 months on a long-stay residence permit, applications to bring family members to France may be submitted.

Furthermore, applications for a four-year renewable visa for a passport talent can be made, which is aimed at executives, independent professionals, or employee-level people with the potential to make a significant contribution to the French economy, particularly in intellectual, scientific, cultural, sporting, or humanitarian fields.