Hiring in France through an Employer of Record (EOR)

Discover our employer’s guide to employment laws, regulations, and Employer of Record (EOR) services in France.

Looking to hire in France? An EOR can help

Hiring in France and don’t want to set up a local entity? An Employer of Record can help you hire and onboard employees. 

An EOR acts as the legal employer for your team, handling essential tasks like payroll and benefits administration and ensuring compliance with complex French labor laws. 

You’ll retain control over your business operations and employees day-to-day, but be able to step back from understanding local labor laws and international workforce management. Unlock new opportunities in the French market quickly and with less risk.

How to hire in France

Step 1: Choose between establishing a local entity and using an EOR

When hiring in France, you can either set up a local entity or use an Employer of Record (EOR) service.

Creating a local entity in France allows you complete control over your HR function. This approach, however, requires significant investment in time, money, and resources. Additionally, French labor laws are complex and demand careful attention.

An Employer of Record (EOR) service simplifies the hiring, onboarding, and management of employees. EORs handle core HR tasks to take risk off your shoulders and allow you to focus on your business.

For a larger workforce in France, setting up a local entity can be beneficial. However, if you aim to quickly or easily enter a new market, an EOR provides a more efficient and flexible solution.

Step 2: Finding the right EOR

Selecting the right Employer of Record (EOR) for your operations in France is vital. The wrong choice can result in compliance problems, unexpected costs, and a poor experience for your new hires. 

Evaluate these factors when choosing an EOR partner:

• Legal compliance. Make sure the EOR is thoroughly familiar with French labor laws, employee rights, tax obligations, and local benefits.
• Customer service. Verify that the EOR offers continuous support. For example, Multiplier offers 24/5 personalized support with dedicated account managers and no bots.
• Transparent pricing. Be cautious of EORs that advertise low initial costs but have hidden fees or complicated pricing structures. Make sure you understand all potential costs before making a decision.
• Total cost of ownership. Invest in an EOR that offers high-quality service and all necessary features, rather than just looking for the most affordable solution.

Step 3: Employing and onboarding in France

Send over the contract

After choosing the right candidate and EOR, the next step is to draft a locally compliant employment contract. Services like Multiplier can quickly create contracts that align with French law in minutes.

You can then customize the contract to specify job roles, working hours, compensation, and termination terms. Once finalized, the EOR will securely send the contract to the candidate and ensure all necessary signatures are collected.

Enhance compensation with competitive benefits

Work with a skilled EOR to develop an appealing benefits package. Rather than dealing with local vendors directly, an EOR can provide a variety of locally administered benefits and ensure that employees receive the necessary IT equipment to start their roles effectively.

Get all your documentation in order

The final step of hiring is to gather the new hire’s tax and banking information. An EOR like Multiplier automates this process to set up payroll, managing all required documentation and making the process more efficient.

Onboarding in France might seem daunting at first, but with the support of an EOR, the process can be smooth and straightforward.

Step 4: Run payroll for employees based in France

Managing payroll for employees in France requires compliance with local tax regulations and mandatory contributions. France’s tax system is progressive, with rates based on income levels (currently ranging from 0% to 45%). 

Employers must also contribute to several mandatory social security schemes including pension insurance, health insurance, unemployment insurance, and long-term care insurance.

Handling these payroll requirements can be challenging, especially for international companies. An EOR can simplify the process of global payroll management, helping you manage accurate and timely salary and payments, withhold all local taxes and contributions, and comply with local labor laws.

Employment laws and regulations in France

French employment laws are governed by the Labor Code (Code du Travail). The Labor Code outlines various rights and obligations for both employers and employees.

A notable aspect of these laws is the prohibition of at-will employment: Terminations must be justified and typically require employers to explore other solutions first.

Another key point to be aware of is that the standard workweek is 35 hours. Overtime pay is required for hours beyond this limit, and employees must receive a 20-minute break for every 6 hours worked.

Employee benefits and compensation

The minimum wage (SMIC) is approximately €1,766.92 gross per month before tax and is reviewed annually to reflect economic conditions.

In addition to income tax, employers must withhold social charges, which fund various social security benefits.

French employment law provides for several standard benefits, such as paid annual leave, sick leave, and parental leave. Employers must also contribute to social security, which covers health insurance, retirement pensions, and unemployment benefits.

Common optional benefits in France include supplementary health insurance, additional retirement plans, and employee wellness programs. Using an EOR service like Multiplier offers the advantage of customizable benefits tailored to your employees’ needs. Our Global Benefits platform ensures you provide locally compliant and competitive benefits efficiently.