EOR Service in France

Shraddha Saxena

Hire, Onboard and Pay Employees in France Quickly and Efficiently

Hiring in France at a glance

CURRENCY
Euro (€)
working hours
Typically, 35 hours per week
public/bank holidays
11 public holidays (varies by region)
capital
Paris
language
French
date format
DD:MM:YYYY
remote workers
1.2M
tax year
January 1st to December 31st
minimum hourly salary
No minimum wage
CURRENCY
Euro (€)
public/bank holidays
11 public holidays (varies by region)
capital
Paris
language
French
date format
DD:MM:YYYY
tax year
January 1st to December 31st
payroll frequency
Monthly
GDP
2.96 trillion US dollars in 2021
working hours
Typically, 35 hours per week

Employer of Record in France

France boasts a staggering number of skilled individuals across various industries, including sales, marketing, technology, and remote work. By utilizing the services of an Employer of Record (EOR) in France, employers from abroad gain unparalleled access to this exceptional talent pool.

The EOR serves as the employer of record for these professionals, managing payroll, benefits, taxes, and other administrative tasks. This arrangement eliminates the need for employers to establish a legal entity in France, simplifying their operations and saving valuable time and resources.

Why use France EOR?

French employment laws are known for their intricacy, including strict regulations surrounding hiring, contracts, and termination procedures. For example, the French labor law heavily emphasizes employee protection and social rights. Open-ended employment contracts are the norm, and fixed-term contracts are subject to strict regulations. In contrast, employer friendly countries like the USA are generally at-will, meaning employers or employees can terminate the employment relationship at any time, with or without cause (except in certain specific circumstances).  

Especially when considering the influence of collective bargaining agreements (CBAs), employers gain a valuable ally by engaging an EOR in France. CBAs are legally binding agreements negotiated between employers and labor unions or employee representatives, ensuring fair and favorable terms for workers.  An EOR in France possesses expert knowledge of collective bargaining agreements and ensures full compliance with them. This mitigates an employer's legal risk. 

EOR Costs in France

The cost of an EOR in France can be seen as an investment in employer protection in an employee friendly environment. It also helps maintain operational efficiency during market entry. . Employers of Record in France charge an all-inclusive fee, encompassing payroll processing, benefits administration and tax compliance. 

EORs in France either offer fixed pricing or percentage-based pricing for their services. The fixed pricing model allows the EOR to charge a predetermined flat fee. Fixed pricing provides employers with transparency and predictability, allowing them to budget accurately and forecast their expenses. 

A percentage-based pricing model involves charging a percentage of the employee's total compensation - 3% to 10% of the employee's salary. Employers with fluctuating staffing requirements or short-term projects often prefer this pricing structure. 

Employers must engage with potential EORs in France to understand their pricing structures and negotiate terms that best suit their business needs.

Key Metrics For Foreign Employers

France’s renowned business-friendly policies and well-developed infrastructure, enabling your company to thrive. France's skilled workforce and access to a diverse consumer market make it an attractive destination for growth. France houses prestigious institutions like INSEAD, a top-ranked business school, offering unparalleled opportunities for professional development.

Factors Global Ranking Interpretation
Rule of law 21 Indicates effectiveness of law enforcement
Labour-employer cooperation 57 Indicates positive labor-employee relationships
Reading Maths, and Science 24 Indicates average scores in OECD's survey of 15-year old students
University Ranking 8 Indicates average QS rankings
Labour productivity per employee 13 Indicates total output by the total labour input used to produce that output
Ease of finding skilled employees 75 Indicates findability of skilled talent
Workforce with tertiary education 19 Indicates % of workforce with PG degrees
Digital Skills 44 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots' Recrew platform, you can discover amazing talent in France and grow your team effectively.

Why work in France?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

Ensuring proper worker classification is of paramount importance when conducting business in France. Incorrectly classifying employees can result in legal ramifications and financial consequences. To mitigate these risks, partnering with a reputable PEO/EOR in France is a prudent decision.

By collaborating with a trusted PEO/EOR, you can navigate the intricate landscape of French labor laws, ensuring compliance and accurate worker classification. These experts handle the complexities of payroll processing, comprehensive benefits administration, and ensure that your workforce receives the appropriate legal protections and entitlements they deserve. This allows you to concentrate on your core business operations while entrusting employment-related obligations to experienced professionals in France.

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Employing in France

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax 

Income range Rate
Up to 10,777 EUR 0.00%
10,778 EUR - 27,478 EUR 11.00%
27,479 EUR - 78,570 EUR 30.00%
78,571 EUR - 168,994 EUR 41.00%
Mthan 168,994 EUR 45.00%

Other Taxes and Social Security contribution:

Tax Employer Contribution Employee Contribution
Health, Maternity, Disability, Death 13.00% or 7.00% -
Autonomy Solidarity Contribution 0.30% -
Old Age Insurance (up to 3,665.50 EUR annually) 8.55% 6.90%
Old-age Insurance 1.90% 0.40%
Accidents at Work variable -
Family Benefits 3.45% – 5.25% -
Unemployment (up to 13,712 EUR annually) 4.20% -
AGS (Wage Guarantee Insurance) 0.15% 0.5%
Supplementary Pension & CEG (up to EUR3,666/month) 6.01% 4.01%
Supplementary Pension & CEG (EUR3,666 - EUR27,424/mo) 14.57% 9.72% - 30.23%
Social Security Surcharge - 9.20%

Separation

Termination Process:

Different methods of ending an employment contract exist, including redundancy, resignation, and mutual agreement through "Rupture Conventionelle." Each method has specific procedures that employers must follow.

Regardless of the job contract, employers must provide a certificate of employment, documentation for unemployment benefits, and a settlement document outlining payments owed to the employee.

Mutual Termination Agreements are commonly used to dismiss employees, reducing legal risks. Notice periods and payment terms can be negotiated, with typical settlements ranging from three to nine months' salary.

The Mutual Termination Agreement process takes around 45 days, with a 15-day period for the employee to reconsider. The agreement must be submitted to the French Labour department for validation.

Notice Period:

In France, the notice periods for employee departures are as follows:

  • Employees with less than six months or two years of service are required to provide one month's notice.
  • Employees who have completed two years of service are required to provide two months' notice.
  • Executives are required to provide three months' notice.

Severance Pay:

The amount of severance pay in France is determined by the following:

  • Provisions in the employment contract or collective bargaining agreement
  • Employee's position or role
  • Reason for termination
  • Level of goodwill between the company and the employee

Typically, severance pay is calculated based on a monthly figure, which is derived from the highest value among the monthly averages over the past year, the general average monthly earnings, or a third of the payment from the preceding three months.

Probation Periods:

In France, the duration of probation periods varies depending on the employee's category and level of seniority. Blue-collar employees typically have a two-month probation period, technicians and supervisors have three months, and management positions require a four-month probation period.

During the probation period, either the employee or the employer can terminate the employment contract without the need to provide reasons or compensation, unless otherwise stated in the agreement. The usual procedural rules for dismissal do not apply during this period.

However, both the employer and, in certain cases, the employee are still required to provide notice. According to Articles L. 1221-19 to L. 1221-24 of the French Labour Code, the notice periods are as follows: 

  • At least 24 hours for less than 8 days of presence
  • 48 hours for an employment period between 8 days and 1 month
  • 2 weeks after 1 month's presence
  • 1 month after 3 months of presence

Start Hiring in France today

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimise all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. They do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Grow your team in France

To grow your team in France, partnering with Gloroots as your global Employer of Record (EoR) can alleviate the challenges associated with compliance, payroll, tax, and benefits management. France's intricate employment regulations require local expertise and resources to ensure adherence to the laws.

Gloroots' comprehensive EoR service takes care of the administrative burden, letting you  focus on your employees and the expansion of your company. By entrusting Gloroots with payroll, tax obligations, benefits administration, and compliance, you can streamline your operations and confidently navigate the complexities of French labor regulations. This empowers you to grow your team in France with peace of mind, knowing that your HR needs are expertly handled, allowing your business to flourish.

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