France PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in France without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by our France PEO, while the new hires and headquarter teams focus on your business goals. Using a France PEO is the fastest and most efficient way to develop a workforce in France.
When hiring employees in France, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with France labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in France. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
France - Country Overview
France is located in Western Europe, bordered to the north-west by the English Channel, the north by the North Sea, and the Mediterranean Sea. Countries along its borders include Belgium, Luxembourg, Germany, Switzerland, Italy, Monaco, Spain, and Andorra. France is among the strongest nations in Europe and pivotal in the sustainability of the European Union. Tourism, telecommunication, agriculture, machinery, chemicals, and steel are the major industries in France.
Employment Contracts in France
In France, an employment contract can be either in writing or verbal.
The employee has the right to request a copy of the agreement in their native language, but only the French document is legally binding.
Some of the details typically mentioned in the written employment contract in France include:
- The amount of paid leave to which the employee is entitled
- Or in the absence of paid leave, the procedures for allocating and determining the leave
- Salary information, including the payment frequency
- Collective bargaining agreements that govern working conditions
- and more
The different types of employment relationships are:
- Permanent Employment – Per the labor code of France, a permanent employment contract, also known as Contrat à Durée Indeterminée (CDI), is a contract with no end date. Permanent employees are entitled to a variety of benefits.
- Fixed-Term Contracts – Per the French labor law, a fixed-term contract, also known as Contrat à Durée Déterminée (CDD), is for a specific duration of employment. Fixed-term agreements do not replace permanent jobs within the company. Fixed-term contracts have a maximum term of 18 months, including renewals.
- Temporary Employment – Per the French Code of Employment, a TWA (Contrat de Travail Temporaire ou d’Intérim; a temporary or agency job contract) involves three parties: the employer, the employee, and the employment agency. The conditions for a TWA are almost the same as those for a CDD.
In France, CDIs typically have probationary periods as follows:
- for workers and employees – 2 months
- for supervisors and technicians – 3 months
- for executives – 4 months
The probationary period for CDD generally may not exceed:
- One day per week for the contract duration, up to a maximum of 2 weeks for an initial term contract of 6 months or less.
- Up to 1 month for employment contracts with a period of more than six months.
If an industry-wide agreement allows, the employer can extend the probationary period once.
Working Hours in France
The statutory maximum working hours in France are 35 hours per calendar week or 7 hours per day. However, with occasional exceptions, work hours may extend up to a maximum of 48 hours per week (an average of 44 hours weekly during 12 consecutive weeks and 10 hours per day).
Employee Leave in France
Employees in France are entitled to the following leave:
- Annual leave in France – Per the Employment Code of France, full-time employees earn 2.5 days of annual leave every working month. Total annual leave is limited to 30 working days per year.
- Maternity leave in France – Female employees are allowed 16 weeks of paid maternity leave.
- Sick leave in France – The French Labor Code does not mention a specific number of days of sick leave. However, employees are allowed paid sick leave on presenting a sick leave certificate (avis d’arrêt de travail) from a doctor.
- Paternity leave in France – Fathers are entitled to 11 consecutive days of paternity leave (or 18 consecutive days if multiple children are born or adopted).
The following are the statutory national holidays observed in France:
- 1. January 1 – New Year’s Day
- 2. April 5 – Easter Monday
- 3. May 1 – Labor Day / May Day
- 4. May 8 – WWII Victory Day
- 5. May 13 – Ascension Day
- 6. May 24 – Whit Monday
- 7. July 14 – Bastille Day
- 8. August 15 – Assumption of Mary
- 9. November 1 – All Saints’ Day
- 10. November 11 – Armistice Day
- 11. December 25 – Christmas Day
Employee Termination in France
According to French employment law, the termination of an employment agreement by either party must be preceded by a notice period for the following duration:
- Employment between 6 months and two years – 1 month
- Employment of more than two years – 2 months
Any current collective agreement or employment contract may raise the statutory minimum notice period in France.
Global Mobility in France
The length and reason for the visit determine the type of visa necessary to enter France.
There are typically two categories of visas in France:
- Schengen visa – Schengen Short or short-stay visas are for stays of up to 90 days.
- Long-stay visa– Long-stay visas are for individuals who plan to stay for more than 90 days.
People from the following countries do not need a visa to enter France: all 28 EU member countries, Switzerland, Iceland, Liechtenstein, and Norway.
EU citizens do not require a residence or work permit in France if they have a passport or other form of identification proving that they are EU citizens. However, non-EU citizens must obtain a work permit to work in France.
Employee Benefits in France
In France, the retirement scheme consists of a compulsory supplementary scheme and a statutory scheme. Individuals must also make appropriate contributions (contribution trimesters) to be eligible for a full pension.
Social insurance, often known as social welfare, is a government-mandated insurance program that provides financial help to the elderly, disabled, injured, and unemployed.
Some examples of social insurance programs in France are:
- Dependents/Survivors Benefit – France’s statutory social security system provides survivors benefits, including a death grant, a lump sum paid to the surviving dependents, a survivor’s pension, and a temporary widowhood allowance.
- Life and Disability Insurance/Benefit – The conditions for receiving disability benefits for occupational and non-occupational accidents or diseases are different.