Key Takeaways

  1. An EOR allows foreign companies to hire employees in France without setting up a legal entity, reducing administrative burden and time-to-hire.
  2. EOR providers handle all employment-related responsibilities, including payroll, contracts, and tax compliance, following French labor laws.
  3. Hiring through an EOR is ideal for companies testing the French market, running short-term projects, or managing a small workforce.
  4. Choosing the right EOR partner in France requires evaluating local expertise, compliance capabilities, payroll systems, and pricing transparency.

France stands as one of Europe’s most attractive destinations for international companies seeking expansion. The country holds the seventh-largest economy in the world and the third-largest in Europe, with a GDP exceeding $3 trillion according to the World Bank. Paired with a highly educated workforce, where roughly 47% of those aged 25 to 34 hold tertiary qualifications according to OECD data, France offers the kind of talent pool that supports serious, long-term business growth.

If you are considering hiring in France without setting up a local entity, an Employer of Record can make that process significantly more straightforward.

How to Hire Employees in France

The French workforce comprises approximately 31 million people, with strengths in engineering, technology, luxury goods, and hospitality sectors. French workers are known for their productivity, with output per hour worked among the highest in Europe according to Eurostat. However, companies expanding into France must follow strict employment protections and collective bargaining agreements that shape the employment landscape.

You have several options when hiring talent in France. Each approach carries its own advantages and regulatory considerations that your company must carefully evaluate before committing to a hiring strategy.

Incorporating an Entity

If you’re seeking a permanent presence in France, you can establish a legal entity through several business structures. The most common forms include the Société par Actions Simplifiée (SAS), which offers flexibility in corporate governance, and the Société à Responsabilité Limitée (SARL), which works well for smaller operations. The incorporation process typically takes three to five weeks and requires multiple steps through various government agencies.

As a foreign business, you must submit articles of incorporation, meet minimum capital requirements, and register through the Guichet Unique — which replaced the former Centre de Formalités des Entreprises (CFE) as of 1 January 2023. You will also need to obtain a SIRET number for tax purposes, register with the relevant social security authorities, and put mandatory insurance coverage in place.

While entity establishment grants your company full control over your French operations, it creates substantial compliance obligations. You must maintain local accounting records, file regular tax returns, and adhere to corporate governance requirements, which often necessitate engaging local legal and accounting experts.

Working with an Employer of Record (EOR)

Employer of Record (EOR) services offer an alternative for companies hiring in France without establishing a legal entity. An EOR serves as the legal employer for a client company’s workers, managing employment compliance while the client maintains day-to-day direction of employees’ activities. This arrangement enables companies to hire French employees quickly without the complexities of entity setup.

EORs handle important employment functions, including employment contracts, payroll processing, tax withholding, and benefits administration in compliance with French regulations. They also manage mandatory social security contributions and ensure adherence to local labor laws. This solution provides particular value for companies testing the French market, hiring for specific projects, or maintaining a small workforce that doesn’t justify entity establishment. 

Learn more about Employer of Record services

Hiring Independent Contractors

Some companies enter the French market by engaging independent contractors, known as “travailleurs indépendants” or “auto-entrepreneurs.” These professionals operate under their business structure, managing their tax obligations and social security contributions independently. Contractors must register with the appropriate authorities and obtain a SIRET number to operate legally.

If you’re thinking of hiring independent contractors in France, you must ensure that the employment framework is indeed on a contractor basis. French authorities strictly distinguish between contractors and employees to prevent misclassification. Companies risk consequences, such as retroactive payment of employer social security contributions, potential penalties, and possible reclassification, if their contractor relationships show characteristics of employment. Courts may enforce all associated employee rights, including severance requirements and claims for unfair dismissal.

Learn about hiring contractors in France

France Employer of Record vs Legal Entity in France

While France EOR services have a lot of benefits, it is worth considering the main alternative: Setting up a legal entity in France. These two options are very different so you should look at them in depth to decide which is the best choice for the needs of your organization.

Registering your own entity in France may be a good idea if you plan to enter this market and want to employ workers directly and on a long-term basis. Incorporating in France also gives you access to the entirety of the EU market which can be a definite advantage. At the same time, however, you may not be ready to manage a business overseas. France and the EU have strict laws that cover business operations and employment which your organization may have little experience with. 

Most foreign investors looking to register entities in France will choose to open a société à responsabilité limitée (SARL) equivalent to a limited liability company or LLC though a société anonyme (SA) or public limited company is also possible. To set up a SARL, you only need a single shareholder. What’s more, the minimum registered capital for incorporation is just one Euro and only one-fifth of this registered capital must be paid in at the time of incorporation. A SARL can be managed by a single managing director who doesn’t need to be a shareholder. SARLs can either pay corporate income tax, fixed at 25% in France, or act as pass-through organizations with the tax liability passed on to the shareholder(s).

To register a SARL in France, investors will need to complete these tasks:

  • Select a name for your company and check it for uniqueness with the Institut National de la Propriété Industrielle (INPI), France’s patent and trademark office.
  • Choose an address for the company, either at an office, commercial, or industrial location or at a domicile. 
  • Open a bank account and deposit at least 20% of the SARL’s share capital. While the minimum required is only one Euro, this may be deemed insufficient for certain business activities and rejected.
  • Prepare and notarize incorporation documents including outlines of the governance structure and operational rules.
  • Register the SARL with the Centre de Formalités des Entreprises. This will allow you to obtain a SIREN (système d’identification du répertoire des entreprises). This is your business’s unique identification number. You’ll also announce the incorporation of your SARL in an authorized newspaper here.
  • Apply for a VAT number with the Service des Impôts des Entreprises.
  • Register with the social security agency.
  • You may also need to acquire other permits and licenses depending on your industry.

France is widely recognised for its streamlined business registration process, with incorporation typically achievable within 4 to 7 business days through the Guichet Unique digital platform. That said, speed of setup is only part of the picture. Maintaining a local entity requires ongoing investment, as legal counsel, accountants, and HR professionals familiar with French labor law are practical necessities for staying compliant over the long term.
For companies that want to move faster and avoid that overhead, an EOR is a practical alternative. Because EOR providers already hold established legal entities in France, they can hire and onboard employee in as little as 24 hours, while managing HR, payroll, and compliance on an ongoing basis.

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Using an Employer of Record in France

An EOR in France acts as the legal employer for a client company’s workforce while the client company maintains control over the employees’ daily work activities and responsibilities. The EOR takes on the legal obligations of employment, including compliance with French labor laws, payroll processing, and tax withholding. This arrangement creates a clear division of responsibilities: the client company manages operational aspects while the EOR handles employment administration and legal compliance.

French EOR providers maintain extensive knowledge of local employment regulations and tax requirements. They establish compliant employment relationships through proper contracts, register employees with relevant authorities, and ensure accurate implementation of France’s complex social security system. For foreign companies, EORs eliminate the need to establish a legal entity while still enabling them to build a legitimate French workforce. This approach significantly reduces time-to-hire compared to entity establishment, with employees often onboarded within days rather than weeks or months.

An EOR in France manages numerous employment responsibilities: 

  • Contracts: EORs create legally compliant employment contracts that adhere to French labor code requirements and applicable collective bargaining agreements. 
  • Payroll Management: EORs process payroll according to French standards, calculating correct tax withholdings and making mandatory contributions to social security schemes.
  • Benefits Administration: They administer employee benefits, including both statutory requirements and supplementary options common in the French marketplace.
  • Compliance: The EOR ensures compliance with France’s extensive worker protections, including working time regulations, leave entitlements, and employee rights.
  • Termination: They handle termination processes according to French dismissal requirements, calculating appropriate notice periods and severance payments.

EORs also represent the employer in interactions with labor authorities and address workplace disputes according to French employment procedures.

How Much Does an Employer of Record in France Cost?

The cost of working with an Employer of Record (EOR) in France can vary depending on the scope of services provided, the size of your team, and the complexity of your HR and compliance needs. On average, prices for France EOR services typically start at $599 per employee per month and can go up to $2,000 or more, depending on the provider and level of service.

Most EORs in France charge either a flat monthly fee per employee or a percentage of gross salary, often ranging from 10% to 20%. These fees generally cover core services such as:

  • Employment contract drafting in compliance with the French Labor Code
  • Payroll processing and wage distribution
  • Withholding and remittance of taxes and social contributions
  • Benefits administration and employee onboarding
  • Ongoing legal and HR compliance support

Additional services, such as visa sponsorship, tailored benefits packages, or multilingual HR support, may incur extra charges. While EOR fees represent an investment, they are often far more cost-effective than setting up a French subsidiary, hiring a legal team, and managing local payroll in-house.

Employment and Labor Laws in France

French employment law provides extensive worker protections established through the Code du Travail (Labor Code) and numerous collective bargaining agreements. The legal framework combines statutory requirements, case law from labor courts, and industry-specific collective agreements that often have the force of law. Most employees in France work under these collective agreements, which establish industry-specific standards for working conditions, compensation, and benefits that frequently exceed legal minimums.

Companies operating in France must also comply with several regulatory bodies, including the Inspection du Travail (Labor Inspectorate), which conducts workplace inspections and enforces compliance. The Direction Régionale de l’Économie, de l’Emploi, du Travail et des Solidarités (DREETS) oversees regional employment matters, while specialized labor courts (Conseils de Prud’hommes) resolve employment disputes. EOR providers manage compliance with these extensive requirements, freeing client companies from the burden of managing them independently.

Employment Contract Requirements

France recognizes several types of employment contracts, with the Contrat à Durée Indéterminée (CDI) or permanent contract serving as the default arrangement. These contracts continue indefinitely until terminated by either party following specific legal procedures. For temporary needs, employers may use Contrat à Durée Déterminée (CDD) fixed-term contracts, but these face strict limitations regarding duration (typically maximum 18 months) and renewal options. French law also recognizes part-time arrangements, apprenticeship contracts, and professional training contracts.

All employment contracts must include specific details such as the following: 

  • Employer and employee identification
  • Job position and description
  • Workplace location
  • Start date
  • Remuneration details, including base salary and variable components
  • Working hours
  • Notice period
  • Collective bargaining agreement applicability
  • Probation period terms

Contracts must be written in French, regardless of the employer’s or employee’s nationality.

Working Hours

The standard legal workweek in France consists of 35 hours, established by the Aubry laws implemented in 2000. The 35-hour limit applies to most sectors, though certain professions and management positions have exemptions or modified arrangements. Companies may distribute these hours differently throughout the week based on business needs and collective agreements.

French law establishes daily work limits of 10 hours maximum, with additional requirements for rest periods including a minimum daily rest of 11 consecutive hours and weekly rest of 35 consecutive hours (typically including Sunday).

Overtime

Hours worked beyond the 35-hour weekly standard trigger overtime compensation requirements. The first eight overtime hours are paid at 125% of the regular rate, with any additional hours compensated at 150%.

The statutory default annual overtime cap is 220 hours per employee, though this figure applies only where no collective bargaining agreement sets a different threshold.

Many CBAs establish their own limits, which can be lower or significantly higher than the default, with some allowing upward of 300 hours per year. Employers should verify the applicable CBA for their industry before setting overtime expectations.

Probation Period

French employment contracts commonly include a probationary period, with the maximum duration depending on the employee’s category. Renewal is permitted once under the Labour Code, but many collective bargaining agreements restrict or prohibit this entirely. Always check the applicable CBA before including a renewal clause.

During probation, either party may terminate with minimal formality, though notice must still be given based on time served.

Employee CategoryMaximum Probation Period
Blue-collar and clerical workers2 months
Technicians and intermediate roles3 months
Management4 months

Payroll and Employment Taxes in France

Fiscal Year

The French fiscal year aligns with the calendar year, running from January 1 to December 31 for most tax and financial reporting purposes. Companies operating in France must submit annual tax declarations by specific deadlines in the following year, with corporate tax returns typically due within three months of the fiscal year’s end. For smaller businesses, extended deadlines may apply.

The tax calendar includes several reporting obligations throughout the year. Employers must submit annual salary declarations (Déclaration Sociale Nominative or DSN) by January 31 and provide employees with tax forms by March. Monthly or quarterly social security declarations occur through the unified DSN system.

Payroll Cycle

French employers typically process payroll monthly, and payments are typically made by the last day of each month or within the first few days of the following month.

Minimum Wage

The French national minimum wage, or the Salaire Minimum Interprofessionnel de Croissance (SMIC), is €12.02 per hour as of 1 January 2026, which translates to approximately €1,823.03 per month for a standard 35‑hour workweek. Many employees receive wages significantly above the SMIC due to industry-specific minimums established in collective bargaining agreements.

Bonus Payments

France does not legally mandate 13th-month salary payments, unlike some European countries. However, many collective bargaining agreements require these additional payments, effectively making them mandatory in specific sectors.

When required by collective agreements, 13th-month bonuses typically equal one month’s base salary, paid either as a lump sum in December or divided between summer and year-end payments.

Employer Tax Contributions

French employers face substantial mandatory contributions toward employee benefits and social programs. Social security contributions form the largest component, covering health insurance, family benefits, workplace accident coverage, and unemployment insurance. These contributions typically range from 25% to 42% of gross salary, depending on company size, industry, and employee status.

French employers must contribute to several mandatory pension schemes, including the basic state pension (CNAV) and complementary systems (AGIRC-ARRCO) that provide additional retirement income based on employee categories. Companies also fund vocational training programs through a contribution of 0.55% to 1% of payroll, depending on workforce size. Companies with more than 10 employees contribute to transportation subsidies in urban areas, and employers with 20 or more employees fund housing assistance programs through the construction effort contribution.

From 1 January 2026, the reduced rates for health insurance and family allowance contributions are abolished and merged into a unified general reduction of employer contributions (RGCP). Employers should verify the applicable rates with URSSAF for periods from that date onward.

Contribution TypeEmployer RateNotes
Health, maternity, disability, death7% or 13%7% rate applies to salaries ≤ 2.25x SMIC (reduced from 2.5x SMIC effective 2025). Abolished from 1 January 2026.
Autonomy solidarity contribution (CSA)0.3% 
Old-age insurance (with ceiling)8.55% 
Old-age insurance (uncapped)2.02% 
Accidents at workVariableVaries based on company size and risk profile
Family benefits3.45% or 5.25%3.45% rate applies to salaries ≤ 3.3x SMIC (reduced from 3.5x SMIC effective 2025). Abolished from 1 January 2026.
Unemployment insurance4.05% 
AGS (wage guarantee)0.20%Finances wage guarantee scheme if the company enters receivership
Supplementary pension (AGIRC-ARRCO) – Bracket 14.72% 
CEG (Overall balance contribution) – Bracket 11.29% 
Supplementary pension (AGIRC-ARRCO) – Bracket 212.95% 
CEG – Bracket 21.62% 
CET (Technical balancing contribution)0.21% 
APEC0.036%Applies only to cadre employees
Professional training0.55–1%Based on company size
Transportation tax0.55–2.95%Applies only in certain urban areas
Total employer contributions25–42% 

Employee Payroll Contributions

French employees contribute approximately 20 to 25% of gross salary toward social protection through payroll deductions. The main components cover health and old-age insurance, supplementary pension, and the generalised social contribution (CSG) and debt repayment levy (CRDS).

Contribution TypeEmployee RateNotes
Social security (health, old-age)~7.3% 
Supplementary pension (AGIRC-ARRCO)3.15% – 8.64%Varies by salary bracket
Unemployment insurance0%Fully employer-funded
CSG (Contribution Sociale Généralisée)9.2%6.8% is tax-deductible
CRDS (Contribution au Remboursement de la Dette Sociale)0.5% 
Total employee contributions~20–25% 

Individual Income Tax Contributions

France began progressive income tax withholding (prélèvement à la source) in 2019, with employers retaining monthly amounts based on individual tax rates ranging from 0% to 45%.

Annual Income (€)Income Tax Rate
Up to €11,6000%
€11,600 to €29,57911%
€29,579 to €84,57730%
€84,577 to €181,91741%
Over €181,91745%

From 2026, a new minimum tax (Contribution Differentielle sur les Hauts Revenus — CDHR) applies to high-income taxpayers. Individuals with household income exceeding 250,000 (single) or 500,000 (joint) must pay at least an effective 20% tax rate. This is relevant for executive-level hires.

Work Permits and Visas in France

Hiring non-EU nationals in France requires the appropriate work authorisation. EU and EEA citizens can work freely without a permit. For everyone else, the permit type depends on the role, qualifications, and salary level.

France overhauled several of its immigration pathways under the 2024 reform law, with key changes taking effect in June 2025. The main permit categories employers should know are:

  • Talent Passport (Passeport Talent): France’s primary route for skilled international professionals, covering highly qualified employees, researchers, intra-company transferees, and employees of innovative companies. Valid for up to 4 years and renewable. Salary thresholds vary by category, starting from approximately 2x the SMIC for qualified employees.
  • EU Blue Card (Carte Bleue Européenne): Issued under the Talent Passport scheme, this targets highly qualified non-EU professionals with a salary of at least €59,373 gross per year (as of 2025). It also provides long-term residency rights across EU member states.
  • ICT Permit (Intra-Company Transfer): For employees transferred from an overseas entity to a French branch or subsidiary. Requires at least 3 months of service within the group and a minimum salary of approximately 1.8x the SMIC.
  • Salarié (Standard Work Permit): For roles that don’t meet Talent Passport thresholds. Requires prior labour market testing to demonstrate no suitable local candidate was available.

Processing times for the long-stay visa stage typically run 1 to 3 months. Residence permit issuance after arrival usually takes around 3 months, though this can vary significantly by prefecture.

France’s immigration system, while well-structured, involves multiple authorities, tight deadlines, and documentation requirements that differ by permit category. An Employer of Record already established in France can act as the sponsoring employer, manage work authorisation applications, coordinate with immigration authorities, and ensure all deadlines are met. For companies bringing in international hires, this removes one of the most time-consuming parts of the onboarding process and significantly reduces the risk of delays or non-compliance.

Time Off and Leave in France

Mandatory Leave Entitlement

French employees are entitled to a statutory minimum of five weeks of paid annual leave per year, equivalent to 25 working days. Leave accrues at 2.5 working days per month worked during the reference period, which runs from 1 June to 31 May each year.

A significant change came into effect following a Cour de cassation ruling in September 2023, confirmed by legislation in April 2024: employees on sick leave now accrue annual leave entitlements during their absence. This reversed longstanding previous practice and is worth factoring into leave tracking and payroll planning.

As for how leave is taken, employees are generally required to take at least 12 consecutive days between May and October. The remaining days can be distributed throughout the year based on company policy and mutual agreement between employer and employee.

Public Holidays

France has 11 national public holidays annually, including:

  • New Year’s Day (January 1)
  • Easter Monday (date varies — the Monday after Easter Sunday)
  • Labor Day (May 1)
  • Victory in Europe Day (May 8)
  • Ascension Thursday (date varies — 40 days after Easter)
  • Whit Monday (date varies — the Monday after Pentecost)
  • Bastille Day (July 14)
  • Assumption Day (August 15)
  • All Saints’ Day (November 1)
  • Armistice Day (November 11)
  • Christmas Day (December 25)

These are legally required paid leave for all employees, though most collective agreements extend this to all public holidays.

Sick Leave

French employees receive sick leave protection from their first day of illness with appropriate medical certification. The social security system compensates employees after a three-day waiting period, paying approximately 50% of the daily base salary up to a maximum ceiling.

Many collective agreements require employers to supplement these payments, often bringing total compensation to 90-100% of normal salary for extended periods.

Parental Leave

France provides comprehensive parental leave protections for both mothers and fathers. Maternity leave (congé maternité) covers 16 weeks for the first and second child, extending to 26 weeks from the third child onward, with at least 8 weeks required to be taken after childbirth.

Fathers and co-parents are entitled to 28 calendar days of leave following the birth of a child. This is made up of 3 days of birth leave (congé de naissance), paid by the employer, and 25 days of paternity leave covered by Social Security through daily allowances (indemnités journalières) paid by the CPAM. The first 7 days, consisting of the 3 birth days and the first 4 paternity days, are mandatory and must be taken immediately after birth. The remaining 21 days can be split into up to two separate periods, as long as they are taken within 6 months of the birth.

Beyond the immediate post-birth period, parents may also take parental childcare leave (congé parental d’éducation) until the child’s third birthday, with the option to take it full-time, part-time, or across multiple periods.

Bereavement Leave

French labor law grants employees paid leave following the death of family members, with duration varying by relationship.

For the death of a child under 25, employees receive 7 days of bereavement leave (conge pour deces) PLUS up to 8 additional days of grieving leave (conge de deuil), for a total of up to 15 days. For a child aged 25 or over: 5 days of bereavement leave.

Terminations and Severance in France

Termination

French employment law requires employers to have a genuine and serious cause (cause réelle et sérieuse) before dismissing an employee, whether for economic reasons such as restructuring or technological change, or for personal reasons such as misconduct or poor performance. Proper procedure must be followed in all cases, including formal notification and preliminary meetings.

Where dismissal is found to be wrongful, compensation is governed by the Barème Macron (Ordinance 2017-1387), which sets binding minimums and maximums based on tenure and company size. For companies with 11 or more employees, awards range from 1 month’s salary at 1 year of service up to 20 months at 30 or more years. Employers should factor this exposure into any dismissal decision from the outset.

Notice Periods

French employment contracts must specify notice periods for termination, with statutory minimums based on employee tenure: one month for employees with 6 to 24 months of service and two months for those employed longer than two years. Collective agreements and individual contracts frequently establish longer notice requirements, particularly for management positions where three to six months’ notice commonly applies.

Employers may release employees from working during notice periods, but must provide full compensation, including all benefits and bonus entitlements, for the duration. For serious misconduct, employers may implement immediate dismissal without notice, though this requires substantial documentation and carries significant legal risk if challenged.

Severance and Redundancy Pay

Employees with at least eight months of continuous service receive statutory severance pay (indemnité légale de licenciement) upon dismissal, calculated as 1/4 month’s salary per year of service for the first 10 years and 1/3 month’s salary for each year beyond 10. This legal minimum increases substantially under many collective agreements, with some industries requiring payments of 50-100% above statutory levels.

Economic redundancies trigger additional obligations, including redeployment attempts before termination, potential priority for rehiring, and outplacement assistance. Mass layoffs (10+ employees within 30 days) require implementation of a social plan (plan de sauvegarde de l’emploi), including comprehensive measures to avoid or minimize job losses.

Why Hire in France with an EOR?

Companies gain significant advantages when hiring French employees through an EOR service. EORs enable quick market entry without entity establishment, allowing businesses to begin operations in days rather than months. By eliminating entity setup and maintenance costs, EORs also reduce initial investment requirements and ongoing administrative expenses, making it a cost-effective option, especially for smaller operations.

EORs manage France’s complex employment compliance requirements, including proper contract creation, working time regulations, and mandatory benefits administration. Their expertise helps companies avoid costly penalties and legal complications from inadvertent violations. By handling administrative employment functions, EORs free company resources to focus on core business activities and strategic priorities rather than regulatory compliance.

How to Choose an EOR in France

Before choosing an EOR partner in France, companies should evaluate the following factors.

Experience

First, assess the provider’s specific experience in the French market, including knowledge of local regulations, collective bargaining agreements, and business practices.

Compliance Capabilities

Verify that the EOR maintains current compliance certifications and appropriate business licenses for France. Companies should examine the EOR’s employment contract templates to ensure they meet French legal standards.

Payroll Capabilities

Evaluate the EOR’s payroll capabilities, including multi-currency options, benefit administration, and accurate record-keeping systems.

Pricing Model

Understand the provider’s fee structure, comparing transparent pricing against service inclusions and potential additional charges.

Expand into France Easily with Remote People’s Employer of Record in France

Remote People offers specialized Employer of Record (EOR) services to support your hiring and expansion in France. We assess your specific workforce needs, compliance obligations, and growth goals to deliver a tailored EOR solution that simplifies employment and ensures full legal compliance. Contact our team today for expert support throughout your hiring journey in France.

Frequently Asked Questions

Yes. An Employer of Record allows foreign companies to hire French employees legally without incorporating in France. The EOR acts as the legal employer on record, handling contracts, payroll, tax withholding, and social contributions under the Code du Travail, while you retain full operational control over your team.

Most French employees are covered by a sector-specific collective bargaining agreement (convention collective), which sets minimum salaries, working conditions, notice periods, and benefits that go beyond statutory minimums. Identifying and applying the correct CBA for your industry is a legal obligation, not optional. An EOR handles this automatically, ensuring your employment contracts reflect the applicable agreement from day one.

French law requires a genuine and serious cause for any dismissal, along with a mandatory preliminary meeting and formal written notification. If a court finds the dismissal wrongful, compensation is determined by the Barème Macron: for companies with 11 or more employees, awards range from 1 month's salary at 1 year of service up to 20 months at 30 or more years. Working through an EOR significantly reduces this risk, as the provider manages dismissal procedures in strict compliance with French labor law.

French social security covers sick leave after a 3-day waiting period, paying approximately 50% of the employee's daily base salary up to a ceiling. Most collective bargaining agreements require the employer to top up these payments, often bringing total compensation to 90-100% of normal salary for extended periods. Your EOR will identify the applicable top-up obligation under the relevant CBA and manage the payments accordingly.

Yes, following a landmark Cour de cassation ruling in September 2023, confirmed by legislation in April 2024, employees on sick leave now accrue paid annual leave during their absence. This reversed longstanding previous practice and applies retroactively in some circumstances. In practical terms, it means employees returning from extended sick leave may have accrued more leave than employers previously accounted for. An EOR will track this correctly and ensure your leave records and payroll calculations remain compliant with the updated rules.

AGIRC-ARRCO is France's mandatory supplementary pension scheme, covering virtually all private-sector employees in addition to the basic state pension. Both employers and employees contribute based on salary brackets: employer contributions range from 4.72% to 12.95% depending on the bracket, and employees contribute between 3.15% and 8.64%. These contributions are non-negotiable and must be correctly calculated and remitted each payroll cycle.

France's 35-hour legal workweek sets the threshold for overtime, not a hard cap on hours worked. Employees can work beyond 35 hours, but anything above that triggers overtime pay: 125% for the first 8 additional hours per week and 150% beyond that. The default annual overtime cap is 220 hours, though many CBAs set different limits, some exceeding 300 hours. Senior management and certain exempt roles may operate under a forfait jours arrangement, measuring work in days rather than hours.

Not by law. Unlike some other European countries, France has no statutory obligation to pay a 13th-month salary. However, many collective bargaining agreements do require it, making it effectively mandatory in those sectors. Where required, it is typically equivalent to one month's base salary, paid either as a lump sum in December or split between mid-year and year-end. Your EOR will determine whether the applicable CBA imposes this obligation and factor it into your total employment cost from the outset.