What are the main compliance challenges when hiring in France?

France has strict employment regulations, including mandatory contract structures, detailed payslip requirements, collective bargaining agreements, and complex social security contributions. An EOR ensures these requirements are met from day one.

Can I hire both local and foreign employees in France through an EOR?

Yes. An EOR can employ both French nationals and foreign employees, provided all right-to-work and immigration requirements are satisfied.

Do I need to understand French labor law before hiring?

No. While French labor law is complex, an EOR manages compliance, contract structure, payroll, and statutory obligations, reducing the need for in-house legal expertise.

What type of employment contract should I use in France?

In most cases, the CDI (indefinite-term contract) is the standard. Fixed-term contracts (CDD) are only permitted in specific temporary situations and must be carefully structured to remain compliant.

How are employees paid in France?

Employees are paid monthly in euros. Payroll includes gross salary, income tax withholding, employee contributions, and employer social contributions, all of which are managed by the EOR.

What are typical employer costs in France?

Employer costs include multiple social contributions such as health insurance, pensions, unemployment, and other statutory charges. These are calculated and managed by the EOR as part of payroll.

How long does it take to onboard an employee in France?

With an EOR, onboarding can typically be completed within a few weeks, depending on contract setup, documentation, and benefit configuration.

Can I terminate an employee easily in France?

Termination in France must follow a formal legal process, including notice periods and potential severance. An EOR guides you through compliant termination procedures and documentation.

Does an EOR handle benefits and leave management?

Yes. An EOR administers statutory benefits such as paid leave, public holidays, and social security-related benefits, ensuring compliance with French regulations.

Is using an Employer of Record in France compliant with local laws?

Yes. When properly structured, an Employer of Record operates within French legal frameworks, acting as the official employer and managing all statutory obligations.

When should I consider setting up a legal entity instead of using an EOR?

You may consider a local entity if you plan long-term operations, large-scale hiring, or require full internal control over HR, payroll, and compliance functions in France.

What are the risks of employee misclassification in France?

Misclassifying a worker in France can expose businesses to severe financial and legal consequences, including retroactive social security contributions, salary and benefit back pay, and penalties enforced by URSSAF. In serious cases, it may be treated as travail dissimulé (concealed employment), leading to heavy fines, criminal liability, and reputational damage.

Can a PEO help hire contractors in France?

A PEO cannot legally hire or manage contractors in France, PEOs operate under a co‑employment model and are designed for employees, not independent contractors, and typically require you to have a French entity. For contractors, companies usually rely on an Agent of Record (AOR) or a true Employer of Record (EOR) alternative; otherwise, using a PEO risks misclassification under French labour law.

Hire Employees in France with an Employer of Record

Hiring employees in France with an EOR does not require your company to establish a local legal entity.

By using EuroDev’s Employer of Record (EOR) and PEO services in France, your business can employ staff legally while EuroDev acts as the official employer on your behalf.

We manage:

French-compliant employment contracts
Monthly payroll and tax administration
Income tax withholding (PAS) and social security reporting
Employer and employee social security contributions
Ongoing HR and employment law compliance

Talk to our EOR experts today

Hiring Employees in France with an Employer of Record

An Employer of Record (EOR) allows foreign companies to hire employees in France without setting up a subsidiary or branch. EuroDev becomes the legal employer in France, while your company retains operational direction over the employee’s day‑to‑day work, responsibilities, and performance management.

How hiring in France through EuroDev works

1. Employee selection

You choose the candidate you want to hire in France.

2. Employment contract setup

EuroDev drafts and issues a French-compliant employment contract aligned with the Code du travail and applicable collective bargaining agreements (conventions collectives).

3. Payroll & tax administration

We run monthly payroll, income tax withholding at source (Prélèvement à la source), and social security contributions through the appropriate authorities, including URSSAF.

4. Ongoing compliance & HR support

EuroDev oversees statutory leave, working time compliance, payslip issuance, and HR administration throughout the employment lifecycle.

Employer of Record vs Setting Up a Legal Entity in France

When an EOR is the right choice:

You want to avoid long set-up times
You want to see if the French market is a good fit
You plan to hire in different countries and have a small team
You want to reduce legal risk by assuring compliance with local law

When a local entity makes sense:

You are building a long-term workforce in France with a large amount of employees
Your company needs a permanent commercial presence
You want complete control over payroll and HR administration

Key differences at a glance

	Employer of Record	Local Entity
Setup time	Weeks	Several months
Legal responsibility	EuroDev	Your Company
Payroll & Compliance	Managed by EuroDev	In-house
Upfront costs	Low	High
Risk exposure	Reduced	Full exposure

Employment Contracts Through a French EOR

Permanent (Indefinite) Employment Contracts

The CDI (Contrat à Durée Indéterminée) is the standard form of employment in France and is presumed unless a fixed-term contract is justified.

Key characteristics of permanent contracts:

No predefined end date
Full statutory employment rights from day one
Severance applies to dismissal without serious/ gross misconduct
Mandatory notice periods apply upon termination
Employees are entitled to statutory severance in cases of serious or gross misconduct
Can be full‑time or part‑time
Probation periods are permitted, within legal limits defined by role and applicable collective agreement

Fixed‑Term Contract Rules (Temporary Contracts)

Fixed‑term contracts (Contrat à Durée Déterminée – CDD) are permitted only in specific, legally defined circumstances.

Key principles include:

A maximum of two renewals
Strict limits on total contract duration (usually 18 or 24 months)
Continued employment beyond this limit results in automatic conversion to an indefinite contract
Misuse of fixed‑term contracts can lead to legal and financial penalties

All employees hired through a French Employer of Record must receive a written employment contract that complies with the Code du travail, applicable collective bargaining agreements (conventions collectives), and mandatory employee protections.

Termination, Notice Periods & Severance in France

France does not follow an "employment at will" model. Termination must follow the correct legal process, and the required steps depend on the type of contract, seniority, reason for termination, employee category, and any applicable collective agreement.

Probation Periods

In France, a probation period (période d’essai) is often included in employment contracts to evaluate the employee’s fit for the role. It must be clearly defined in writing and aligned with statutory limits and any applicable collective agreement. Maximum durations generally range from two months for junior roles to four months for managers, with a single renewal allowed if specified in advance. During this period, termination is more flexible, though minimum notice requirements still apply.

Notice periods

For employees with less than 6 months' seniority, notice is generally set by collective agreement, contract, or practice
From 6 months to 2 years of seniority, statutory notice is 1 month
From 2 years of seniority, statutory notice is 2 months
Collective agreements or contracts may provide more favorable terms
Serious or gross misconduct can affect notice and severance rights

Severance pay

Statutory severance generally applies after at least 8 months of uninterrupted service with the same employer
Minimum statutory severance is 1/4 month's salary per year of service up to 10 years
After 10 years, the minimum is 1/3 month's salary per year of service
More favorable collective agreement or contract terms may apply
Severance is generally not paid in cases of gross or serious misconduct

EuroDev guides you through termination procedures to ensure compliance and risk mitigation.

Payroll, Employer Costs & Working Hours in France

Payroll costs when hiring through an EOR in France

When hiring employees in France through EuroDev’s Employer of Record service, employer costs are typically around 42-45% on top of gross salary. However, this varies depending on salary level, reduction schemes, and executive or non-executive status. This covers all mandatory employer charges and statutory contributions.

Potential Example:

Average annual gross salary: €42,000
Estimated total employment cost: €59,600

This includes Health and maternity insurance, pension (basic and supplementary), unemployment insurance, family benefits, workplace accident insurance, and various mandatory funds.

EuroDev fully manages all payroll calculations, filings, and statutory payments.

Social Security & Employer Contributions in France

When hiring employees in France through an Employer of Record, EuroDev manages all social security registrations, filings, and payments as part of the payroll process.

Employer responsibilities handled by EuroDev

Pre-employment declaration via DPAE
Monthly payroll processing and Déclaration Sociale Nominative (DSN)
Withholding employee social security and income tax (prélèvement à la source)
Paying all mandatory employer social security contributions
Ensuring correct application of ceilings, rates, and collective rules

Typical employer contribution structure

Employer contributions in France are high and vary slightly depending on the company size, risk profile, and collective agreement.

Statutory contributions include:

Health, maternity, disability and death insurance: ~7%-13%
Old-age pension (basic and supplementary - Agirc-Arrco): ~12%
Unemployment insurance: ~4%
Family allowances: ~3.45%-5.25%
Workplace accident insurance: industry based
Autonomy solidarity contribution (CSA): 0.3%
National Housing Fund (FNAL): 0.1%-0.5%
Wage guarantee fund (AGS): ~0.15%
Social dialogue contribution: ~0.016%

Total estimated employer contribution (including workplace accident insurance): ~40%

Working Hours & Overtime in France

France has a statutory full-time working week of 35 hours
The 35-hour week is a legal reference threshold, not a maximum
Any work above 35 hours is regulated and subject to overtime rules
Statutory overtime premiums are +25% for the first 8 overtime hours per week and +50% thereafter, subject to collective agreement variations
Part-time employment is allowed, but the 35-hour benchmark still determines when overtime rules apply

Paid Vacation Leave & Public Holidays

Employees hired through an EOR in France are entitled to statutory paid leave. EuroDev tracks leave accruals, leave taken, and payroll treatment.

Annual leave

Employees accrue 2.5 working days of paid leave per month of actual work
This equals 30 working days, or 5 weeks, for a full year of work
Paid leave applies to full-time, part-time, CDI, and CDD employees
Collective agreements or company rules may provide additional leave.

Public holidays

France has 11 national holidays that apply for all regions (not all are paid)
Certain regions have 2 extra public holidays (Good Friday and 26 December)
May 1st, Fête du Travail, must be paid and non-working by law

Maternity & Paternity Leave in France

Maternity leave

16 weeks (6 weeks before and 10 weeks after the birth)
6 week minimum of postnatal leave
Compensation is paid by French Social Security (CPAM) in the form of daily maternity allowances
Allowance is calculated based on average salary (statutory cap)
Employment contract is suspended
Payment continues for the entire duration of leave

Exceptions apply depending on number of children or multiple births.

Paternity leave

Birth leave of 3 working days applies first (paid in full by employer at normal salary rates)
25 calendar days for one child
For multiple births, leave is 32 calendar days
Paid through social security daily allowances
First 4 days after birth are mandatory
The optional second period must be taken within 6 months of birth
Employment contract is suspended

EuroDev ensures parental leave is registered, reported, and paid correctly in line with current French regulations.

Why Companies Choose EuroDev for EOR in France

No need to establish a French legal entity
Faster route to compliant hiring in France
Local support for employment contracts, payroll, benefits, and HR administration
Reduced exposure to French employment compliance risk
One point of contact for hiring, onboarding, payroll, and employee lifecycle support
Scalable support as your France team grows

Hire Employees in France with Confidence

EuroDev helps international companies hire employees in France quickly, compliantly, and without unnecessary administrative burden.

Whether you are hiring your first employee in France or expanding an existing European team, our EOR and PEO services give you the structure to employ staff, manage payroll, and stay aligned with French employment requirements.

Get in touch with our team today about hiring in France.