You can hire employees in France without the need for an entity.
Typically, to hire employees in France, your business must have an entity, which involves establishing a local office, registering an address as a subsidiary, and opening an account with a local bank. Managing regional benefits, payroll, tax, and HR laws throughout this process can take several months.
France has separate regulations for contractors compared to full-time employees, making it crucial to avoid misclassification to avoid potential penalties. ATA streamlines the process of hiring employees in France, ensuring speed, simplicity, and compliance. Additionally, our platform automates tasks such as tax document collection, payroll, benefits, and more.
Our quickstart guide to hiring in France
Navigate the tabs below to learn everything you need to know about hiring an employee in France
- Minimum Wage Requirements
- Minimum Wages in France increased to 1709.28 EUR/Month in the first quarter of 2023 from 1645.58 EUR/Month in the third quarter of 2022.
- Individual Income Tax
- The range of individual income tax varies from 0% to 45% and is calculated using progressive rates.
|Type of leave||Time period|
|Annual leave/Earned Leave||35 days|
|Sick Leave||90 days|
|Maternity Leave||16 weeks|
The employment contract may be terminated by the employer in the event of a valid reason (such as personal or financial reasons), mutual agreement, or the individual’s retirement.
Employees who are still under probation are required to give notice of up to 5 days prior to leaving their job, while regular employees must provide notice of up to 3 months.
The amount of severance pay an individual receives is dependent on their length of service with the employer. The statutory severance pay rates are as follows:
- Less than 10 years of service: 25% of the monthly salary for each year of service
- More than 10 years of service: 33.33% of the monthly salary for each year of service
All employers in France are required to provide certain statutory benefits to their employees as stipulated by labor laws. These benefits include:
- 13th-month pay
- Social security
- Old-age pension
- Long-term disability benefits
- Short-term disability benefits
- Death grant
- Workers compensation benefits
After the client signs the SOW, the onboarding process typically requires two-three business days.
- Employee contract
- There are two types of employment contracts in France: CDI (permanent employment) and CDD (temporary employment). According to French employment laws, a CDI (contrat à durée indéterminée) is given to an employee for ongoing and indefinite service. On the other hand, a CDD (contrat à durée déterminée) is given to an employee for temporary employment that cannot exceed 18 months of service.
While French is the language of choice for employment contracts, employees and employers may choose to have the contract translated into other languages.
- Probation period
- In France, probationary periods are commonplace and typically range from one to three months, with the latter being more common for senior positions. However, the length of the probationary period may extend up to five months depending on the collective bargaining agreement.
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