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 business destinations for international companies seeking expansion opportunities. The country boasts the seventh-largest economy worldwide and the third-largest in Europe, with a GDP of $3,051.83 billion as of 2023. France offers companies access to a highly educated workforce, with about 47% of the population aged 25-34 holding tertiary qualifications according to OECD data.

With this outlook, you can rest assured of building a reliable workforce if you’re thinking of hiring employees in France. We’ll discuss how you can hire without setting up a legal entity in France using the services of a French EOR company.

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, deposit minimum capital requirements, register with the Centre de Formalités des Entreprises (CFE), and obtain a SIRET number for tax purposes. You must also register with the Social Security authorities and implement mandatory insurance coverage.

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. 

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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 retroa ctive 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.

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France Employer of Record vs Legal Entity in France

While France EOR services have a 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.

Compared with other countries, this process is relatively quick and easy to accomplish. In 2020, the World Bank gave France a high score of 93.1/100 and a ranking of 37th in the world for ease of starting a business. It found that it takes French nationals just four days to start a SARL through the process may be longer and more difficult for foreigners. However, it’s crucial to remember that while the initial process may be fast and relatively inexpensive, you’ll also need to maintain this company going forward. This means you’ll need to hire professionals like lawyers, accountants, and auditors to ensure everything is being run compliantly. You’ll also need to manage your French employees through your organization or hire HR professionals familiar with French labor laws.

Compared to local entities, France EORs can act quickly to hire employees as they already own entities in France which can act as the legal employers of local staff. It can take as little as 24 hours to hire and onboard a new employee through an EOR and I will manage your employees’ HR needs over the long term.

Start hiring with a France EOR

Let us handle the complexities of hiring, compliance, and payroll in France while you focus on growing your team.

  • Hire employees in France with a France EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in France
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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 standard trigger overtime compensation requirements in France. Overtime rates start at 125% (an additional 25%) for the first eight overtime hours and increase to 150% for additional hours. Companies have an annual overtime limit of 220 hours per employee, though collective bargaining agreements may establish different thresholds.

Probation Period

Employment contracts in France typically include probationary periods during which either party may terminate the relationship with minimal formality. The legal maximum probation duration depends on the employee category: two months for blue-collar and clerical workers, three months for technicians and intermediate positions, and four months for management roles. Contracts may include provisions for renewal of these periods once, provided the combined duration doesn’t exceed double the initial period.

During probation, employers must provide notice before termination, with the notice period increasing based on time served: 24 hours for less than eight days of service, 48 hours for 8 days to one month, two weeks for one to three months, and one month after three months.

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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.

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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, supporting ongoing professional development.

Companies with more than 10 employees contribute to transportation subsidies in urban areas, supporting public transit infrastructure. Employers also fund housing assistance programs through a construction effort contribution applied to companies with 20+ employees.

Contribution TypeEmployer RateNotes
Health, maternity, disability, death7% or 13%7% rate applies to salaries not exceeding 2.5x minimum wage
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 risks
Family benefits3.45% or 5.25%3.45% rate applies to businesses eligible for general decrease in contributions and salaries ≤ 3.5x minimum wage
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%Only in certain urban areas
Total Employer Contributions

25–42%

 

Employee Payroll Contributions

French employees contribute to social protection systems through payroll deductions averaging 20-25% of gross salary. The largest components include social security contributions for health coverage, retirement benefits, and unemployment insurance.

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%
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Time Off and Leave in France

Mandatory Leave Entitlement

French employees receive a statutory minimum of five weeks’ leave (25 working days) annually. This leave accrues at a rate of 2.5 days per month worked from June 1 to May 31 of the following year.

Employees generally must take at least 12 consecutive days of leave between May and October, with the remainder distributed throughout the year based on company policy and employee preference.

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 requires 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 maternity leave (congé maternité), which grants 16 weeks for first and second children, extending to 26 weeks for third and subsequent children. At least eight weeks must be taken after childbirth.

Paternity leave (congé paternité) provides 28 days, including three mandatory days immediately following birth and 25 additional days within six months.

Parents may also take parental childcare leave (congé parental d’éducation) until the child’s third birthday. This leave can be taken full-time, part-time, or split into multiple periods. 

Bereavement Leave

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

Employees receive seven working days for the death of a child under 25 years old, five days for the death of a spouse or partner, three days for the death of a parent, sibling, or child over 25, and one day for in-laws or grandparents.

Terminations and Severance in France

Termination

French employment law strictly regulates dismissals, requiring employers to have a genuine and serious cause (cause réelle et sérieuse) for termination. Valid reasons fall into two categories: economic dismissals based on financial circumstances, technological changes, or reorganization; and personal dismissals for performance issues, misconduct, or professional inadequacy. Employers must follow precise procedural requirements, including formal notification, preliminary meetings, and specified notice periods.

For performance-based dismissals, employers must document progressive discipline, provide improvement opportunities, and show that issues persist despite corrective efforts.

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.