Benefits of using a French PEO & Employer of Record in France
- Expand without an entity
- Flexible and cost-effective solution to outsource payroll and HR functions for international expansion
- In compliance with foreign local laws & regulations
- Minimizes employment liabilities and risks
- Reduced risk, as the risks of being an employer fall almost completely on the employer of record
- Let's you focus on your core business
- You manage your employees
- EoR takes care of registration and contact with local authorities
Employment Contracts France
There are three types of employment contracts in France. A permanent contract, a fixed-term contract and a casual employment contract. A permanent contract (contrat à durée indéterminée – CDI) is the most common form of employment contract in France.
A permanent employment contract is for employees who are paid a salary or hourly rate and who work regular hours. This type of contract may apply to full- or part-time work and is ongoing until it is terminated by the employer or employee.
A fixed-term employment contract has a set end date. For example, a job covering maternity leave would require a fixed-term contract. Employees with a fixed-term contract have the same rights as permanent employees. A fixed-term contract may be renewed twice for a maximum period of 18 months, unless otherwise provided for in the collective agreement.
Employment Termination France - Notice Period France
There is no ‘at will’ termination in France. There are usually only two reasons the employer will be allowed to terminate in the eyes of French law:
- Economic dismissal (e.g. the company is performing poorly and needs to reduce the number of employees or shut down the company) or;
- Personal dismissal (e.g. the employee is underperforming or has committed a fault).
The notice period in France is fixed by law, collective agreement and/or employment contract. The notice period is generally between one and three months. The notice period depends on the employee's length of service. The 3 month notice can be worked, or the salary paid out to the employee.
As the French PEO and EOR provider is the formal employer of your employees in France, they are also responsible for terminating the contract while applying the applicable French terms.
Social Security Contributions Employer in France
What are the primary social security contributions in France? And more importantly, what is the amount of the social security contribution that is accounted to the employer? The total primary social security contribution in France can total up to 50% for employers and 28% for employees. On average the social contribution for employers is 48%. The primary social security contributions include:
- Family Benefits
- Health and Sickness
- Social Charges
- Accident at Work
- Unemployment Benefit
- Main Pension
- Complementary Pension
All of these social security contributions will be listed on the payslip and the actual rates will vary depending on the industry, company size, compensation and job position.
Average Salary France & Average Employer Costs France
In 2022, the average annual wage in France was $38.514,00. This is a lower than the average annual wage in the United States: $53.490,00. As an employer, the actual employer costs are around 48% higher than the gross annual salary. Based on a $38.514,00 annual salary, the employment costs would be $57.000,72.
To learn more about the average salaries in Europe and the actual employment costs in Europe, we invite you to read this article on Costs of hiring European employees.
Working Hours in France
In France, the legal length of the working week is 35 hours in all types of companies. The working day may not exceed 10 hours. Furthermore, employees may not work for more than 4.5 hours without a break.
Paid Vacation Leave France
Employees are entitled to a minimum of five weeks' paid holiday a year, in addition to public holidays.
To learn more about the average paid vacation days in Europe and how France compares to the rest of Europe, we invite you to read our blog on paid vacation days Europe.
Public Holidays France
- New Year's Day - 1 January
- Easter Monday - 18 April
- Labour Day - 1 May
- Victory in Europe Day: end of World War II - 8 May
Ascension Day - 26 May
- Whit Monday - 6 June
- Bastille Day: National Day - 14 July
- Assumption of Mary - 15 August
- All Saints' Day - 1 November
- Veterans Day/Remembrance Day: end of World War I - 11 November
- Christmas Day - 25 December
Maternity and Paternity Leave France
It is mandatory to take at least eight weeks’ maternity leave in France. Women can take up to 16 weeks of leave (congé maternité), usually six weeks prior to the expected date of delivery and 10 weeks after. This time can increase to 26 weeks if a woman is having her third child. If you’re having twins, the period is 34 weeks; for triplets, this increases to 46 weeks. Adoption leave is also available for 10 weeks
Paternity leave in France is usually around 11 consecutive days and increases up to 18 days for multiple births.
Learn more about PEO and EOR in Europe:
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Monique Ramondt Sanders
Executive Vice President | HR Outsourcing