Velocity Global’s International PEO (Professional Employer Organization) enables your company to quickly and compliantly expand into France without the hassle and commitment of setting up an entity. With streamlined employee onboarding, International PEO is the fastest and most flexible global expansion method available.
When you utilize International PEO to hire in France, Velocity Global becomes your Employer of Record. We compliantly hire and onboard your French employees on your behalf and handle all payroll, benefits, compliance, and risk mitigation—while you maintain day-to-day control of their job duties.
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France Fast Facts
Currency: Euro (€)
Population: 65.3 million
Economy: $2.78 trillion
Top Sectors: Agriculture, tourism, transportation, manufacturing, technology, energy
- France has ten public holidays throughout the year including:
- New Year’s Day
- Easter Monday
- Labor Day
- Victory Day 1945
- Ascension Day
- Bastille Day
- Assumption of Mary
- All Saint’s Day
- Armistice Day
- Christmas Day
Hiring Considerations in France
Benefits of hiring in France:
- France is one of the world’s most modern countries and is a leader among European nations. The country is the world’s 7th largest economy as of 2019, and it is the 2nd largest economy in the European Union after Germany.
- France is one of the easiest countries in which to do business, according to the World Bank’s 2019 Ease of Doing Business Report. It is also one of the most promising markets for tech firms considering global expansion, according to Velocity Global’s 2020 State of Global Expansion™ Report’s Global Expansion Tech Index™.
Challenges when expanding into France:
- The French legal framework is protective of employees, as an employee can only be dismissed in very specific circumstances and after the completion of a regulated process.
- The Corporate Income Tax rate for businesses in France is 34.43%. Foreign companies must pay a limited tax liability on their source income from the country.
- The French Competition Authority may need to be notified of certain mergers and acquisitions, as anticompetitive practices are punishable offenses.
Cultural nuances and must-knows for doing business in France:
- Use first names to greet clients only when invited to do so. Sometimes the French will introduce themselves by saying their surname first, followed by their first name.
- Begin and end a business meeting with a brisk handshake accompanied by an appropriate greeting and the exchanging of business cards.
- Learn basic French phrases and use when whenever possible, as French people appreciate you showing respect for their culture and language.
- Do not be put off by long or heated debates during business negotiations. This is a common practice in France, and its citizens appreciate these types of intense conversations.
Employment Contracts in France
Minimum wages and salaries:
- The minimum wage in France is €10.03 per hour or €1,521.22 per month on a 35-hour working week. This minimum wage is one of the highest in the European Union.
- In France, probationary periods help mitigate risk in hiring. Unless an employee’s employment or collective bargaining agreements (CBA) outline increased protections, the contract can be terminated during the probationary period without cause and at no additional cost to the employer, outside of providing the mandatory notice.
- Maximum probationary periods are two months for lower-wage service workers and clerks, three months for technicians and supervisors, and four months for mid- to high-level executives and professionals.
- The termination notice during probationary periods are as follows:
- 24 hours for employees who have worked at least eight days
- 48 hours for employees who have worked between eight days and one month
- Two weeks for employees who have worked for more than one month
- One month for employees who have worked for more than three months
- Bonuses in France are not mandatory unless it is part of a collective agreement, however, most companies offer some type of bonus pay. Many French employers pay their employees a bonus in December, known as 13th month’s salary.
Termination and severance considerations:
- An employer must give notice prior to dismissing an employee, except in cases of serious misconduct or negligence. The notice period is generally between one and three months, but sometimes up to six months. A company may release the employee from working during the notice period and pay out severance in lieu of notice.
- If an employee has been employed for at least one year, the employer is legally obligated to pay the minimum legal severance pay.
- The minimum severance pay varies based on the amount of time a company employed a worker, but typically averages one-fifth of a month’s salary for each year of service.
Paid Time Off & Benefits
- Mothers in France receive 16 weeks’ maternity leave.
- If a mother is expecting twins, the maternity leave is 34 weeks and 46 weeks if expecting triplets or more.
- Fathers are granted 11 consecutive days of paternity leave, in addition to three days of leave for the birth.
Vacation and annual leave:
- After one month of work, employees are eligible for paid leave and receive five weeks per year.
- For employees to receive sick leave, 200 hours of contributions must be paid during the three months prior to the time the leave is taken.
- The amount of paid sick leave awarded depends on how long an employee worked or earned in the three to 12 months before falling ill, but it typically ranges from six to 12 months. Sick leave is normally capped at 360 days within three years.
Average workweek hours:
- Working hours are generally Monday to Friday from 8 am or 9 am to 6 pm, with a several hour lunch break in between.
- However, it depends where the organization is located, as the lunch break is unusual in Paris and other big cities.
- Compared to other countries, overtime is less common in France.
- However, if employees do work overtime, they earn 25% more per hour for the first eight hours of overtime. After that, they earn 50% more per hour.
Choose Velocity Global
Breaking into the French market is a considerable undertaking. But partnering with an experienced global expansion organization like Velocity Global affords a quick, compliant expansion to capitalize on new opportunities. Velocity Global’s International PEO (Professional Employer Organization) solution streamlines global expansion and, as your Employer of Record, oversees your risk mitigation, payroll, and compliance concerns, so you can stay focused on moving the needle.
International PEO provides the maximum flexibility your firm needs to pursue short-term projects, hire a single employee, or build a new team abroad. When compared to entity establishment, your firm saves up to 60% and begins operating in France 90% faster.
Ready to take the first step to grow your presence in France? Let’s make it happen.