Hiring guide in France

What should I know about hiring in France?

When it comes to hiring in France, there are a few things to keep in mind. The first is that the French labor market is highly regulated. This means that there are a lot of rules and regulations that you need to be aware of when you are hiring. 

The French Labor Code is a set of laws and regulations that govern employment in France. It is essential to be familiar with these laws when hiring, as they will dictate how you can advertise open positions, what kind of contracts you can offer, and what your obligations are as an employer. 

In addition, once you have selected the best candidate for the job, you need to provide them with a contract. Be sure to include necessary details like the salary, start date, and any benefits or perks included in the offer.

Why is France a good choice for finding remote employees?

France has a strong work-life balance tradition, making it ideal for remote employees who want to maintain a healthy work-life balance. The infrastructure in France is excellent, which means your remote employees will have access to high-speed internet and reliable phone service. 

France is a culturally diverse country, which means your remote employees will be exposed to various cultures and lifestyles. 

Another beneficial thing is that the French government offers a variety of incentives for businesses that set up shops in the country, which can benefit your business if you’re looking to expand into France.

How can Native Teams help you hire in France

Hiring new employees, dispersing salary and other monetary rewards, and ensuring regulatory compliance in accordance with French legislation are all areas in which Native Teams can assist. With our employer of record services, we can make sure that your benefit and compensation packages are more enticing to potential employees!

Hire your first French employee with Native Teams.

Legal requirements for hiring in France

Minimum wage

Contributions & taxes

Employer tax

Employers pay between 29.50% and 31.30% in total employment tax. Health, Maternity, Disability, and Death Benefits take up 13%, Autonomy Solidarity Contribution gets 0.3%, and Retirement Benefits get 8.5%. Additional 2.45%-5.25% for Family Benefits, 4.05% for Unemployment, and 0.15% for AGS (Wage Guarantee Insurance).

Corporate tax

Standard corporate tax rates are 25%.

Employee tax

The total amount of taxes paid by employees is 16.10%. Contributions of 6.90% go to Retirement Insurance, 9.20% toward the Social Security Surcharge, and 0.50% toward the Social Security Debt Reimbursement Contribution.

Income tax

Personal income tax rates are progressive, meaning higher rates are applied to higher incomes. Earners with low incomes do not have to pay income tax, but those with incomes above EUR 151,956 are subject to a tax rate of 45%.

To calculate the salary and taxes in France please click here.

Payroll cycle

Wages in France are typically paid on the last business day of the month, following a monthly payroll cycle.

Is there a 13th salary in France?

The 13th salary is customarily paid at the end of the year.

Labor rules

Probation period rules

Regular workers in France have a 2-month probationary period, whereas technicians and supervisors have 3 months, and upper management has 4 months. 

Employees and employers have the right to end their contracts without penalty or explanation during the probationary period.

Notice period 

The French notice requirements are as follows:

• Employees must give a 1 month’s notice of resignation between the first 6 months and the second year of employment;
• After 2 years of employment, employees must provide a 2-month notice of resignation;
• For executives, the notice period is 3 m

Severance period

The amount of severance compensation might differ significantly in France depending on the employee’s position or role, the business’s financial health, the cause for the termination, and the relationship between the employer and the employee.

Payments are typically made monthly, with the amount being based on the highest of the monthly averages over the previous 12 months, the general standard of monthly earnings, or 1/3 of the payment made during the last 3 months.

Working hours

French law mandates that all businesses adhere to a maximum weekly work schedule of 35 hours, with no work day exceeding 10 hours. As stipulated by most contracts and union agreements, overtime pay is required for any work performed beyond the standard 35 hours per week.

If you work overtime during a regular workday, you’re entitled to the following premiums:

• Increase of 25% per hour for the first 8 hours of overtime;
• 50% more for each hour after that.

Leave and benefits

Public holidays

There are 13 official national holidays in France:

1. New Year’s Day
2. Good Friday
3. Easter Monday
4. Labour Day/1st May Day
5. WWII Victory Day
6. Ascension Day
7. Whit Monday/Pentecost Monday
8. Bastille Day
9. Assumption of Mary
10. All Saint’s Day
11. Armistice Day
12. Christmas Day
13. Boxing Day/Saint Stephen’s Day

Sick leave

Employees are eligible for sick pay from the Social Security Administration beginning with their fourth day off work. The collective/company agreements typically outline any supplemental pay from the employer. 

All employees who have worked for the company for at least 3 months and are paid monthly are eligible for prorated continuation payments equal to their regular salary for up to 90 days. 

Workers in Quebec are eligible for Social Security benefits for up to three years if they submit a medical certificate to their employer within 48 hours of becoming ill.

Maternity leave & paternity leave

Mothers are eligible for up to 16 weeks of maternity leave 6 weeks before the baby is born and 10 weeks after. The standard length of maternity leave is 26 weeks, but this can be increased to 34 weeks for twins and 46 weeks for more than two babies. 

Paternity leave in France lasts for 28 calendar days. The father or other secondary newborn parent receives 25 days of paid leave in addition to the 3 days allotted for the birth.

Other leave (marriage, bereavement, exam leave)

Parental leave

If you’ve worked for the company for at least a year, and your child was born during that time, you may be eligible for parental leave, provided you get the go-ahead from your employer. Those with more than 2 years of service and more than 1 child are eligible for a monthly payment in addition to up to a year of unpaid parental leave or a reduction in working hours under this leave policy.

Additionally, if a child gets sick, the employee may ask for a type of parental leave lasting between 3 and 5 days, depending on how many kids they have and what age they are. A parent is permitted to take up to 310 days of unpaid leave in order to provide full-time care for their child if they are seriously ill, hurt, or incapacitated.

Adoption leave

Workers who adopt a child are eligible for paid leave. The amount of time it takes will vary based on the number of children in the home and how many are adopted.

What are the minimum vacation days?

Following a probationary period of one month, French law mandates that all employees are entitled to a minimum of 5 weeks of paid vacation per year.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in France, please upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in France?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.