How to Hire in France
Expanding your business into new international markets is a great way to experience opportunities for growth and innovation. France, known for its robust economy, strategic location, and skilled workforce, offers a compelling case for foreign companies looking to establish a presence in Europe. From the country’s strong labor laws that protect both employers and employees, to its diverse and highly educated workforce, France offers a unique environment where your company can thrive.
Employers considering how to hire in France from another country will need to understand the local labor laws. Companies have three main options for hiring workers abroad:
- Hire directly through your own French entity
- Hire through a global PEO
- Hire and pay independent contractors
Each method of hiring depends on the overall strategy and goals of your organization. We understand the complexity of international hiring and will guide you through the process of accessing the French talent pool.
Hiring workers in France
When hiring foreign workers, businesses need to determine their short- and long-term goals, timelines, and budget limitations. Understanding your market and hiring requirements will ensure you have greater success with your global expansion objectives.
1. Hire directly through your own French entity
Establishing a legal entity gives your business full control when hiring part- and full-time employees in France. With the incorporation process usually only taking about two weeks, and the cost at around €3,600, France is considered a more business-friendly country. The entire documentation process may take longer after the subsidiary is set up, but businesses can begin operating right away. Hiring French workers directly ensures you have greater stability and control for long-term success.
Related: 7 questions about international entity setup, answered
But hiring directly comes with its fair share of challenges. Companies that establish their own entity are accountable to all local labor laws and collective bargaining agreements (CBAs). Before you dive in and build a workforce in France, make sure you are compliant with all HR and payroll requirements to avoid expensive fines and penalties. For those that don’t have the resources to support foreign employees, in-country partners can provide additional support.
Related: Pros and cons of doing business in France for global companies
Incorporation is viewed as a more traditional route for international expansion. It may be more costly or time-consuming than other hiring strategies, but it offers a firm foundation for growth.
2. Hire through a global PEO
A professional employer organization (PEO) is a simple way to hire foreign workers without having to worry about compliance. Global PEOs, also called an employer of record (EOR), complete all the administrative tasks on your behalf. Companies can leverage an existing network of legal entities to hire employees without all the extra complexity of French regulations.
While you focus on the daily tasks of your employees, PEOs handle things like HR, onboarding, payroll, benefits, and compliance. Companies can hire employees much faster, which is why it has become such a popular alternative to establishing their own entities. It allows you to test new markets with the flexibility to scale operations based on data-driven results.
Partnering with a global PEO to hire in France enables companies to build a remote workforce quickly. This is often a necessary first step before committing to a long-term expansion strategy like entity establishment.
3. Hire and pay independent contractors
Many employers choose to hire international contractors because they aren’t required to pay benefits or taxes. France has a large freelancer workforce of 3.2 million contractors, which is approximately 10% of the EU’s 33 million freelancers. Employers hire contractors for short-term or project-based jobs as a fast and flexible hiring solution.
Related: International contractor vs. employee: Understanding the difference
However, just because you don’t have to pay taxes or benefits doesn’t mean there isn’t any risk. Businesses still need to understand French employment classifications before hiring a contractor. For example, employers will need to ensure a fixed-term employment contract is signed before they can start working with a French contractor.
Related: Guide to paying foreign contractors
Hiring a contingent workforce in France is cost-effective as long as you avoid worker misclassification risks. Violating these employment laws will result in back pay, back taxes, civil lawsuits, and other legal penalties.
FAQs for how to hire in France
Hiring overseas can be a major challenge. If you’re planning to expand into France, here are some common questions to be aware of before you go. Understanding and complying with French employment law is necessary for success in the market.
Are the working hours different in France?
Yes. Unlike the U.S., the standard work week in France is only 35 hours. This can have a significant impact on overtime requirements, which is 150% of regular pay. However, even with overtime, employees are limited to a maximum of 48 hours per week. Additionally, CBAs cover 95% of employees across France that require even more benefits than employment law dictates.
What are all the available leave requirements?
Annual leave: Employees are entitled to 25 days paid annual leave, not including any additional CBA provisions.
Sick leave: Depending on how long the employee works for a company, employees receive paid sick leave for up to three years at 50% regular pay.
Maternity leave: The leave for mothers can range between 16 to 46 weeks of paid maternity leave. The exact number depends on the number of existing children they have, and whether they give birth to twins or triplets.
Paternity leave: Parental leave for new fathers receive 28 days of paid paternity leave, or 32 in the case of twins or triplets. This includes both the birth or adoption of a child.
Public holidays: There are 11 public holidays in France, plus additional regional and departmental holidays. However, most of these days do not require payment by law, so it’s important to check the CBA for additional requirements.
What if I want to terminate an employee in France?
Employers are allowed a probationary period with their employees, between two and four months, depending on the employee’s position and relevant CBA provisions. This provides protections to both parties as they determine if the role is a suitable fit. Once a company passes this point in the employment relationship, they will be subject to termination and severance laws.
For terminations, businesses must provide a notice anywhere from one to three months in advance, depending on the specific CBA provisions. However, if employers want to forgo the notice period, they can provide the employee pay in place of the notice.
When it comes to severance, employers pay 25% of the employee’s monthly salary for each year of service for the first 10 years. Anything after that is 33% of the salary for each additional year. It’s important to check on the specific CBA requirements to determine if the employee is entitled to more compensation.
How to hire employees in France with Global PEO Services
The French market is bursting with new talent and opportunities for growth. We have the experience and expertise to help you navigate complex international employment laws to expand your workforce. Global PEO Services, a Safeguard Global company, simplifies your expansion strategy and empowers you to focus on hitting your growth objectives.
We handle all the onboarding, payroll, HR, benefits administration, taxes and compliance. No matter what your hiring needs are, we can help you quickly and cost-effectively acquire the best workers in France. Speak with one of our global business advisors today to learn more.