Employer of Record & PEO in France
Hire & manage teams remotely in France without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in France. Registering a legal entity in France as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in France in full accordance with local labor laws in under a week.
Employer of Record in France
Employer of Record (EOR) services are for companies who do not have a legal entity in France, but who want to hire in France. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in France.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in France in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in France while NNRoad manages payroll & HR liabilities.
- Acting as the employer of record for your leased employees
- Signing the employment contract with your employees
- On boarding and off boarding of your employees in compliance with French laws
- Employee management – employee record retaining, time keeping, bonus and allowance management, and expense claims accordingly to the local law. Ensure expense claims are processed in compliance with French regulations (in euros) and approved by an authorized Client contact
- Mandatory social insurance (e.g. social contributions (URSSAF), unemployment benefits, pension plans, life and disability, and health coverage) according to the local laws
- Insurances including public liability for all your employees’ activities, bank insurance for payment of salaries, worldwide travel insurance for your employees
- Provide the documents to obtain a working visa
Payroll & PEO in France
Professional Employment Organization (PEO) services are for companies who have a legal entity in France, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in France.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in France while NNRoad manages payroll & HR compliance.
- Registration of the necessary company and personnel information for payroll calculation in the payroll software and system:
- Raw data collection
- Employee data maintenance
- Local government bureau registration and statutory insurances
- Maintain employee record
- Monthly payroll processing:
- Calculation of gross salary, salary deductions (e.g. tax, social contribution, and other deductions), and net salary based on pre-agreed format
- Processing of benefits in payroll (contributions to company cars, lunch tickets), bonus accruals etc.
- Payment to individuals, preparing pay slips in PDF
- Handling Employer social contributions (URSSAF), unemployment benefits, pension plans, life and disability, and health coverage
- De-registration of an individual with authorities (social security) and statutory insurances
- Calculation, monthly reporting, remittance of taxes to local authorities
- Annual/Quarterly/Monthly Declaration (preparation and submission) of social data with authorities and mandatory insurances
Advantages of NNRoad's France Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in France.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in France.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in France
Taxes & Payroll in France
Employee Income Taxes:
Individual income tax rates in France are based on progressive tax brackets. Incomes at or bellow 10,225 EUR per year are not taxed.
0%: 0 – 10,225 EUR
11%: 10,225 – 26,070 EUR
30%: 26,070 – 74,545 EUR
41%: 74,545 – 160,336 EUR
45%: >160,336 EUR
Yearly income = 100,000 EUR
0% * 10,225 = 0
11% * 15,845 = 1743
30% * 48,475 = 14,543
41% * 25,455 = 10,437
1743+14,543+10,437 = 26,723
Yearly income tax = 26,723 EUR
Employer Costs in France
Employers must pay contributions based on the salary of their employees:
0.5% – 1.75% – Transportation tax (2% – 3% for those in the Paris metro area)
1% – Training tax (0.5% for firms with less than 10 employees)
100 EUR per year per employee for the mandatory medical exam.
Social Charges (CSG): 9.7% of employee’s gross monthly salary
Unemployment benefit: 4.05% of employee’s monthly gross salary
Main pension: 10.45% of employee’s monthly gross salary
Complementary pension: 17% of employee’s monthly gross salary
Accident at work: 3% of employee’s monthly gross salary
Health/Sickness: 13% of the employee’s monthly gross salary
Family benefits: 5.25% of employee’s monthly gross salary
Total cost: 52,75%
Social Charges (CSG): 9.7% of employee’s monthly gross salary
Unemployment benefit: 0.95% of employee’s monthly gross salary
Main pension: 7.30% of employee’s monthly gross salary
Complementary pension: 11.20% of employee’s monthly gross salary
Accident at work: varies
Family benefits: varies
Total cost: 29,15%
Working Hours in France
Working Hours per Week
The work week in France is 7 hours per day, 35 hours per week. Employees in France work 5 days a week. Any work over 35 hours in a week is considered overtime. Employees working overtime are entitled to extra pay depending on the situation.
Employees cannot work more than 10 hours in a workday, with 48 hours being the maximum for a workweek. The first 8 overtime hours will be paid at 125% of the set wage, while any additional hours will be paid at 150% per hour. Yearly bonuses include 13th and 14th-month salaries.
Benefits & Insurance in France
By law, it is mandatory for employers in France to offer social security benefits.
By law, it is mandatory for employers in France to offer Private Healthcare and additional Life and Disability Insurance.
Termination Laws in France
Severance in France can be a statutory entitlement or a more generous payment in a closed bracket agreement (CBA). French law protects employees from illegal termination such as termination stemming from race, gender, or sexual preference.
Public Holidays in France
Public Holidays in France
- New Year’s Day – Jan 1
- Good Friday – Mar 30
- Easter Monday – Apr 2
- Labour Day – May 1
- Victory in Europe Day – May 8
- Ascension Day – May 10
- Whit Monday – May 21
- Bastille Day – July 14
- Assumption Day – Aug 15
- Armistice Day – Nov 11
- Christmas Day – Dec 25
- St Stephen’s Day – Dec 26
Paid Leave in France
Employees in France are entitled to a minimum of 5 weeks paid leave per year on top of public holidays. French law also reserves extra paid leave for employees whom have been employed for a certain length of time and for family emergencies.
Companies can choose to place their employees on an annualized work schedules, which qualify them for ‘Reduction du temps de travail’ which translates into “work time reduction” (RTT). RTT days entitle employees to additional days off as compensation for the extra workload.
Employment Contract in France
Written contracts are not required when hiring employees in France, but it is advised. The most common contract in France Employment contracts is Open-ended contracts (the most common contract in France). This is not required to be in writing.
Unless the employee’s employment agreement states otherwise, the employment contract can be terminated during the probationary period without cause and at no additional cost to the employer beyond providing the mandated notice.
Maximum probationary periods are two months for “blue-collar workers” and clerks, three months for technicians and supervisors, and four months for cadres (mid- to high-level executives and professionals).
Types of Leaves in France
Employees in France are entitled to sick leave. For each case of sick leave, the first 3 days of sick leave are unpaid. Starting at the 4th day of sick leave, employees are entitled to 50% of their base daily salaries, limited up to 360 days in 3 years.
Maternity leave in France depends on the number of children in the family:
Single birth and 1-2 children: 16 weeks of leave
Single birth and 3 or more children: 26 weeks of leave
Multiple births (3+): 46 weeks of leave.
If the mother suffers from complications or illnesses during the pregnancy, she is entitled to an extra 6 weeks.
New fathers are entitles to 3 days of paternal leave after birth or adoption and an additional 2 consecutive days of leave (32 inn case of multiple births or adoptions).
Immigration Laws in France
A French employer must obtain a work permit for a non-EEA (non-EU nation member citizens) national before employment begins. EEA nationals (EU nation member citizens) do not need a work permit.