Employer Of Record Services In France

Choose The Right EOR Partner In France

Expanding your business in France can be tricky without correct guidance or knowledge. This is the major reason why certain companies fail to traverse the erratic path to growth in the French market. A France Employer of Record partner can help smoothen the path for you to grow seamlessly.

If you’re looking to expand to France, here are some major factors to keep in mind.

Hiring A Global Team Employees

The international hiring process should be compliant with local laws and regulations. On-boarding employees should be seamless for better company growth and outcomes. Employment of record services in France takes care of all processes pertaining to fresh recruitments for a company.

Locally Compliant Labor Contracts

The employment contracts are important legal documents that should be formulated by the EOR services in France keeping the local legal mandates in mind. For instance, the French government has certain provisions set in place for minimum wages, overtime compensation, work leave, and health insurance in France, which need to be adhered to.

Smooth Onboarding And Offboarding

The EOR services and your company policies should make it convenient for new employees to join your workforce or for existing employees to terminate their services if needed. Hassles in these operational procedures can demotivate employees and impact their performance.

Cost-Effective But Reliable EOR Services

Recruitment can be challenging for newer companies, especially due to language barriers and cultural differences in a territory like France. Moreover, companies looking to expand their operations in the French market are often subject to severe budget constraints. International expansion is a capital-intensive process.

This is where the need for an experienced EOR service provider is felt, who can tackle all issues efficiently and build a competent workforce at minimum cost.

Edge’s EOR Services In France

At Edge, our employment of record services in France focuses on three main criteria. One, your company should receive the best talent pool available all across France. Next, employees should feel satisfied and content with their role in your company’s workforce. Lastly, there should be an unmatched synergy between you (i.e. the employer) and the employees which can catalyze exponential growth of the company in no time.

To make this happen, we focus on a few major areas.

Talent Acquisition

Our hiring team focuses heavily on aligning recruitment with company-specific needs. An expectation-need mismatch can make work inefficient and prone to challenges. We work to alleviate these issues right from the onset with our efficient recruitment program and culture orientation.

Employee Benefits Administration

We administer employee benefits such as health insurance, retirement plans, and other perks as per the company’s policies and local regulations. Some of these benefits are mandatory under the social security system of France, while others are optional offerings according to company policies.

International Compliance

Our EOR professionals stay updated with the latest trends and regulatory updates by the government. Staying legally compliant with all operations under our surveillance is our primary focus. In the past, many companies found non-compliant have paid severe penalties and compensation. Some of them have also faced legal actions and consequences.

Tax And Labor Law Compliance

The tax regime set in place for individuals and corporate firms is also subject to change with each financial budget. There are taxes under various categories, such as Corporate Income Tax (CIT), Value Added Tax (VAT), property tax, customs duty, etc.

The corporate income tax rate is set at 28% in France. Depending on the industry and specific allowances, there can be slight variations in this rate. Individual employees are required to pay income taxes according to a progressive model in which the rate increases with increasing principal salary. For personal income up to €10,084, there is no income tax mandate for individuals.

Thus, payroll processing and tax filing need continuous updates. Our payroll team and EOR department coordinate with each other so that tax compliance is never an issue for you.

Administrative HR Services

Our comprehensive package includes all HR management tasks, right from hiring employees to conducting orientation and team-building sessions. We look after the optimum performance of all departments such as sales and marketing, and resolve employee issues like work leave allowances, debts, overtime pay, severance, etc.

This holistic approach helps us provide you with a one-stop solution for all your EOR needs. It makes day-to-day company operations a breeze.

Work Regulations And French Labor Law

It is important to have a fair idea regarding the existing work and labor laws in France. This will help you understand the core requirements better and focus on staying compliant while growing your business here.

Payroll Cycle Duration And Minimum Wages

The typical payroll schedule in France is monthly, with employees usually receiving their salaries around the 25th of each month. However, certain companies may choose to follow a bi-weekly or semi-monthly payment cycle.

As of January 1, 2024, the prevailing minimum wage in France stands at €10.25 per hour for adults in formal employment. This becomes a monthly income of €1,554.58, calculated based on a 35-hour workweek.

Overtime Pay

In France, the standard workweek is set at 35 hours. Overtime is remunerated at 125% of the regular hourly wage for the initial eight hours and at 150% for any subsequent hours. Typically, there exists an annual cap of 220 hours of overtime per employee. Exceeding this limit necessitates specific agreements.

Work Leave Allowance

• Annual Leave – Employees who work a 35-hour week on a full-time basis have the right to receive a minimum of five weeks of paid leave each year. This entitlement accumulates at a rate of 2.5 days of leave for every calendar month worked, reaching a maximum of 30 days of leave. It’s important to note that employees cannot take more than 24 days of annual leave consecutively unless there is an agreement with their employer.
• Parental Leave – Paternal leave can either be in the form of maternity or paternity leave.

Maternity leave encompasses a minimum of 16 weeks of paid absence for female employees, split into 8 weeks before and 8 weeks following childbirth. During this period, they receive nearly 100% of their standard salary. Paternity leave grants fathers 28 days of paid time off upon the arrival of a child.

• Sick Leave – After finishing a probationary period, usually lasting 3 months, employees have the right to paid sick leave. The specifics regarding duration and payment may vary based on the company’s policy and social security regulations. Extended sick leave would require a doctor’s certificate.

Termination Of Contract

Both the employer and the employee hold the authority to instigate terminations, subject to prescribed procedures and notice periods mandated by law. The duration of the notice period hinges on tenure and the grounds for termination. In particular cases, such as termination without culpability or closure of the company, severance pay may be requisite.

Severance Pay

Should an employee be terminated without fault following a minimum of one year of service, they are eligible for severance pay. This compensation typically varies, starting from one month’s wages for the initial year of service and increasing to a full month’s wages for each subsequent year. Further support might be provided in instances of unjust dismissal.