What You Need to Know Before Hiring in France
The Local Job Market
France is one of the best places in Europe to find talented people. There are a lot of jobs in the aerospace, luxury, pharmaceutical, automotive, and tech industries in Paris, Lyon, Toulouse, Marseille, and Lille.
Unemployment sits at around 7.9%, which means there's real availability in the talent pool. Inflation is low, between 1% and 1.3%, and GDP growth is expected to be between 0.9% and 1% through 2026.
The catch? French employment law is famously complex. This is what every employer needs to know before they hire someone for the first time:
- Employment Contracts: Most workers in France have permanent contracts (CDI). There are fixed-term contracts (CDD), but they are only legal in certain situations. Foreign employers often make the expensive mistake of misusing them.
- Collective Bargaining Agreements (CBAs): More than 95% of workers in France are covered by CBAs, which are legally binding. Negotiated between employers and unions at the national, industry, and company levels, these rules often go beyond the Labour Code (which means that the rules that apply to your employees may be different from the national defaults). You must know which CBA covers your industry.
- Working Hours: The 35-hour workweek is one of France's most well-known (and most misunderstood) employment rules. Anything above 35 hours counts as overtime and must be compensated accordingly, with rates defined by your applicable CBA. Daily hours are capped at 10.
- Leave Entitlements: France takes work-life balance seriously, and the law backs it up. Employees are entitled to 11 public holidays, 5 weeks of paid annual leave, up to 6 months of paid sick leave, and 16 weeks of maternity leave.
Key Advantages of Hiring in France
- Highly educated workforce: France's grandes écoles produce some of the best engineers, scientists, and business leaders in Europe, giving employers access to a truly world-class pool of talent.
- EU market access: Employees in France give you a foothold in the EU's single market. They also cover the Central European time zone and have high-speed rail connections to all major European cities.
- Strong R&D incentives: The Crédit d'Impôt Recherche (CIR) covers 30% of eligible R&D expenditure up to €100 million. This makes France one of the best places in the OECD for research-heavy jobs and teams.
- Strategic location: Central European time zone, excellent infrastructure, and direct connections to London, Brussels, Amsterdam, and beyond.
Common Challenges for Foreign Employers
- Complex labour code: The French Code du travail is very protective of workers. There are strict rules about dismissals, working hours, and benefits that you need to pay close attention to from the start.
- High social contributions: Employer costs typically add 40% to 45% on top of gross salary, one of the highest rates in Europe. Total employment cost needs to be factored in before you make an offer.
- Language requirements: Employment contracts must be written in French by law, and internal policies should be available in French too.
- CBAs apply broadly: Most industries are covered by a convention collective, which often sets higher standards than statutory minimums for wages, leave, notice periods, and benefits. Identifying the right one for your employee's role is a key compliance step.
Pay & Tax in France
French payroll is complex due to the volume and interaction of regulations, which can cause challenges for employers.
Payroll Cycle
- Frequency: Monthly
- Pay date: By the end of each calendar month
- Tax year: 1 January – 31 December
Since 2019, France has operated a pay-as-you-earn system called prélèvement à la source, meaning employers withhold income tax directly from each payslip before it reaches the employee.
Employer Social Security Contributions
French payroll is notable for high employer contributions, typically adding 40% to 45% to gross salary. These contributions cover health insurance, pensions, unemployment, and workplace accident insurance.
The 2026 Social Security ceiling (PASS) is €48,060 per year (€4,005 per month).
Note: Rates shown reflect the general case. Your applicable CBA, company size, industry, and the employee's compensation level can all affect the exact structure.
Employee Payroll Deductions
Employees in France contribute approximately 22% to 25% of their gross salary to social security. Key deductions include:
CSG and CRDS are calculated on 98.25% of gross salary (after a 1.75% abatement for professional expenses).
Individual Income Tax
France has a progressive income tax system, but with a unique feature: the quotient familial, where income is divided by the number of "shares" based on family size. One person is considered 1 share, a married couple is considered 2, and for every dependent child, 0.5 is added.
The brackets below apply to 2025 income, declared in spring 2026:
Note: For high earners, a differential contribution (CDHR) may apply to tax residents earning above €250,000 (single) or €500,000 (couple), bringing the effective minimum rate to 20%.
Pension System
France's pension system runs on three levels:
- Basic state pension (retraite de base): Administered by CNAV is calculated on the best 25 years of earnings at up to 50%, with a legal retirement age of 64 following the 2023 reform.
- Mandatory supplementary pension (AGIRC-ARRCO): Applies to all private-sector employees through a points-based system funded by both employer and employee contributions.
- Optional supplementary plans: Employers can also offer optional retirement savings plans (Plan d'Epargne Retraite, or PER) as an additional benefit.
How an EOR Helps with Payroll in France
Getting French payroll right means managing dozens of contribution lines, variable rates tied to salary thresholds and company size, monthly DSN filings, and payslip compliance. One miscalculation can trigger a URSSAF audit.
With Borderless AI, the payroll run is processed in Euros, including the gross-to-net calculations, and the payment is released in 3 to 5 business days, including the support of multiple currencies for teams in different countries. The calculations of contributions, taxes, and reporting are also automated, including the changes introduced by the LFSS reforms of 2026.
Employment Laws and Regulations in France
Legal Framework
French labor regulations and laws are covered under the Code du travail. Collective bargaining agreements and EU Directives are also applicable. Foreigners need to be aware of the following regulations:
- The provision most beneficial to the employee shall apply in case of a conflict between the CBA and the Code.
- France has a system of labor courts (Conseils de prud'hommes) which is designed to protect employees, and an employer will not win a case without proper documentation.
Employment Contract Requirements
All contracts need to be written in French, even if the native language of the employee is not French. However, employees are allowed to request a translation, but the French version will prevail in case of a dispute.
Types of Contracts:
- CDI (Contrat à Durée Indéterminée): This is the permanent contract and the standard form of contract for France. In case of uncertainty, this should be the form to use.
- CDD (Contrat à Durée Déterminée): Fixed-term contracts can only be offered for specific reasons, e.g., for an absent employee. The maximum contract can last for 18 months; otherwise, it may prove to be a costly mistake for foreign employers.
- Part-time contracts: This needs to be agreed upon and offer the same legal protection as a full-time contract.
A French employment contract must include:
- Job title, description, and classification
- Start date (and end date for CDD contracts)
- Place of work
- Applicable CBA (convention collective)
- Compensation, including salary, bonuses, and benefits
- Working hours
- Probation period terms
- Notice period requirements
- Paid leave entitlements
Onboarding Formalities
Employers need to comply with the following requirements before or at the time of hiring the employees:
- Submit the mandatory pre-hire declaration (Déclaration Préalable à l'Embauche (DPAE)) to URSSAF
- Register the employees in the staff register (registre unique du personnel)
- Register the employee for mandatory supplementary health insurance (mutuelle) and provident insurance (prévoyance)
- Register the employees for the appropriate complementary pension fund (AGIRC-ARRCO)
- Complete immigration formalities for non-EU/EEA nationals
- Inform the labor inspectorate (Inspection du travail)
Probation Periods
Probation periods must be explicitly stated in the contract to be valid. For CDI contracts, maximum durations are:
During probation, either party may terminate the contract with 24 to 48 hours' notice, depending on tenure. Review your applicable CBA, as it may specify different terms.
How EOR Can Help with Employment Laws?
EOR, like Borderless AI, can assist with the process of onboarding employees in France, which usually takes only 1-2 business days. However, for non-EU nationals, a right to work assessment may also be necessary, which could add a few days, as well as the cut-off for the payroll.
Working Hours and Overtime in France
Standard Working Hours
One of the best-known rules in French employment law is the 35-hour workweek, which is also one of the most misunderstood for foreign employers.
- Daily maximum: 10 hours (12 hours with special authorization or CBA provision)
- Weekly maximum: 48 hours in any single week, or 44 hours averaged over any rolling 12-week period
- Minimum daily rest: 11 consecutive hours between working days
- Minimum weekly rest: 35 consecutive hours (typically Sunday + Saturday evening or Monday morning)
- Breaks: Minimum 20-minute break for any shift lasting more than 6 hours
Overtime Hours
Any hours worked above 35 in a week are considered overtime (heures supplémentaires), which must be compensated at appropriate rates. These rates are fixed by the Code du travail, though your CBA may provide for even higher rates:
A few more rules worth noting:
- Annual limit: 220 overtime hours per employee per year, though a CBA may set a different cap (contingent annuel)
- Compensatory rest: Some CBAs allow compensatory time off instead of overtime pay
- New for 2026: A flat employer social contribution deduction of €0.50 per overtime hour now applies to companies with 20 or more employees, and €1.50 per hour for for companies with fewer than 20 employees.
Public Holidays
France has 11 public holidays per year. Only 1 May (Labour Day) is a mandatory paid day off by law; the other 10 are usually provided as paid days off, and most CBAs make provision for this:
Alsace-Moselle also includes two extra holidays: Good Friday and St. Stephen's Day on 26 December. Local holidays can be observed in overseas countries as well.
Bridge days (ponts): Bridge days (ponts): In some companies, if a holiday falls on a Tuesday or a Thursday, the Monday or Friday before or after will also be taken as a long weekend, though this is not a requirement by law.
Special Conditions
- Night work (generally 9pm to 6am): This is subject to special authorization and health monitoring and is normally subject to premium payments in accordance with the CBA.
- Sunday work: This is restricted for most industries. Where Sunday work is allowed, additional compensation and/or a compensatory day off apply.
RTT days (Réduction du Temps de Travail): Employees who work over 35 hours but below maximum allowable limits may be entitled to additional days off rather than overtime pay. This is common in most CBAs and is worth understanding before setting a schedule.
Compensation and Minimum Wage in France
Minimum Wage (SMIC)
The French minimum wage (SMIC) applies to all employees who are 18 years and older and work in metropolitan France and most overseas territories. It is adjusted on 1 January of every year and may be adjusted mid-year if inflation is over 2%. As of 1 January 2026:
Apprentices and workers under 18 may receive a reduced percentage of the SMIC. Many CBAs also set industry-specific minimums above the SMIC based on the employee's qualification level and job classification. Employers must always apply whichever rate is higher.
Salary Benchmarks
The average gross salary in the private sector in France in 2024 Archyde stands at approximately €3,602 on average, though this can vary significantly depending on the sector, position, and location.
- Salaries in Paris tend to be 15% to 25% higher than the national average
- Technology, finance, pharmaceuticals, and aerospace consistently pay above average
- Other significant cities, such as Lyon, Toulouse, and Nantes, are becoming increasingly attractive with a lower cost of living than in Paris
Payment Requirements
- Currency: Euros (€)
- Frequency: Monthly, salaries must be paid by the end of each calendar month
- Method: Bank transfer is standard, and employers must provide a detailed payslip (bulletin de paie)
- 13th-month bonus: Not legally required, but very common in practice and often mandated by the applicable CBA, typically paid in December as an extra month's salary
- Profit-sharing: Mandatory for companies with 50 or more employees (participation aux bénéfices). Many employers also offer voluntary profit-sharing (intéressement)
How an Employer of Record Helps You Hire in France
If you were to hire employees in France without a local entity, you would need to incorporate a Société par Actions Simplifiée (SAS), which would take weeks to months and incur recurring costs.
With Borderless AI's Employer of Record service, your employees are hired through a locally-owned entity in France. This gives you direct control over compliance without the need for a chain of subcontracted partners. This is what we can do for you:
- Employment contracts drafted in French and compliant with the applicable CBA
- DPAE filing and social security registration with URSSAF
- Payroll processing, including gross-to-net calculations, payslips, and monthly payments
- Tax withholding, covering income tax (prélèvement à la source), social security, pension, and unemployment contributions
- Mandatory benefits enrollment, including supplementary health insurance (mutuelle), provident insurance, and pension funds
- Leave tracking and administration for annual leave, sick leave, and maternity/paternity leave
- Termination procedures, including notice periods, severance calculations, and required documentation
- Visa and work permit support for non-EU/EEA hires where applicable
Leave Policy in France
France has some of the most liberal leave policies in the world. Here’s precisely what your employees are entitled to, and what this means for you as an employer:
Annual Leave
French employees are entitled to a minimum of 5 weeks (25 working days) of paid annual leave per year, accruing 2.5 days for every month worked. A few things worth knowing, apart from the basic 5 weeks’ leave:
- Reference period: Leave is accrued between 1st June and 31st May of the following year.
- Main leave: Employees must take at least 12 consecutive working days between 1 May and 31 October
- Additional leave: Many CBAs grant extra days on top of the statutory 25, including seniority-based leave and RTT days
Maternity Leave
Maternity pay is covered by Social Security (Ameli), which is based on the average daily salary for the three months prior to the start of the maternity leave. The employee must have been affiliated with Social Security for at least 10 months before the due date and have worked at least 150 hours in the 90 days before that. Many CBAs specify that employers should top up the amount to 100% of salary for the full period.
Paternity Leave
Since July 2021, paternity leave in France totals 28 calendar days (35 for multiple births). Here's how it breaks down:
- First 3 days after birth: Paid by the employer (mandatory congé de naissance)
- Remaining 25 days (32 for multiples): Covered by Social Security, based on average daily salary subject to a cap
- Structure: 4 consecutive days must be taken immediately after the birth. The remaining 21 days can be split into up to 2 periods of at least 5 days, taken within 6 months of the birth
- Notice: The employee must inform the employer at least one month in advance
Parental Leave
Employees with at least one year of service at the time of their child's birth can request parental education leave (congé parental d'éducation), up to one year and renewable twice for a maximum of 3 years. The leave is unpaid, though a monthly allowance (PreParE) may be available through the CAF (family benefits fund), subject to certain conditions. Employees can also opt for reduced working hours instead of taking full-time leave.
2026 update: A new paid parental leave scheme is expected to come into effect from 1 July 2026, replacing the current PreParE framework. It will apply to children born or adopted from 1 January 2026 onward, with details still being finalized by decree.
Sick Leave
In France, there is no limit on the duration of sick leave. As long as the employee is presenting medical certificates for their sickness, they can be off work for as long as they need.
- Medical certificate: The employee needs to present a medical certificate from their doctor to their employer within 48 hours of the first day of their sick leave
- Waiting period: The first 3 days are unpaid. From day 4, Social Security, also known as Assurance Maladie, pays a daily benefit
- Social Security coverage: From day 4, Assurance Maladie pays approximately 50% of the employee's daily reference salary, subject to a cap
- Employer top-up: Most CBAs require the employer to supplement Social Security payments so the employee receives close to their full salary. How much and for how long depends on the employee's seniority and the applicable CBA
- 2026 LFSS update: New rules now cap initial sick certificates at one month, with extensions limited to two months unless the doctor provides specific justification. This is designed to reduce long-term absence claims
Other Leave Types
France also provides a range of additional paid leave for life events. These aren't optional extras, they're legal entitlements:
Employee Benefits in France
France’s benefits package goes far beyond a simple salary. Some are mandated by law, some are a result of CBAs, and some are just what competitive companies feel they need to win and retain good people.
Mandatory Benefits
The following are mandated by law as a minimum for every employee in France:
- Supplementary health insurance (mutuelle): Since 2016, all employers must offer a group health insurance plan covering at least the minimum basket of care (panier de soins). The employer must cover at least 50% of the premium.
- Provident insurance (prévoyance): Mandatory for cadres (managers and executives) and often extended to all employees by CBA. Covers death, disability, and incapacity.
- Pension contributions: Employer and employee contributions to AGIRC-ARRCO, the mandatory supplementary pension scheme for all private-sector employees.
- Work accident insurance: Funded entirely by the employer through URSSAF.
- Unemployment insurance: Funded by employer contributions.
- Public transport reimbursement: Employers must reimburse at least 50% of employees' public transit passes, such as the Navigo card in Paris.
- Occupational health check-ups: Employers must organize regular medical examinations for all employees.
Common Supplemental Benefits
Apart from the legal minimum, most competitive employers in France provide a range of additional benefits that help them attract and retain top talent. What is considered standard may differ depending on industry and CBA, but some common supplemental benefits include:
- Enhanced health insurance covering optical, dental, and hospitalization beyond the statutory minimum
- Life insurance and supplemental disability coverage
- Supplemental retirement plans (Plan d'Epargne Retraite, PER)
- Meal vouchers (titres-restaurant), with the employer typically covering 50% to 60% of the voucher value
- Transport allowances beyond the 50% reimbursement, including sustainable mobility allowances for cycling
- Housing assistance through Action Logement, required under some CBAs
- Equipment allowances for phone, laptop, and home-office setup
- Flexible and remote working arrangements (télétravail), increasingly standard and typically governed by a written agreement that includes equipment reimbursement and the employee's right to disconnect (droit à la déconnexion)
How an EOR Handles Benefits in France
Managing French benefits entails the administration of several providers for health insurance, pension, and provident schemes, each having its own rules and CBA-specific requirements. Don't get the enrollment done for the compulsory mutuelle within the enrollment window, and you'll already be incurring penalties even before your employee has completed their first week of work.
With Borderless AI, all of this is handled at onboarding. The right CBA is selected, enrollments are completed for all necessary plans, and ongoing administration, including life events, is done for you. You retain control over any additional benefits you wish to add.
Termination in France
Terminating an employee in France is a far cry from terminating an employee in the United States. It is a highly structured process with a strong bias in favor of the employee. Make a mistake in the process, even with a valid reason for terminating, and you could find yourself in a labor court defending a claim for wrongful termination.
Grounds for Termination
Every termination in France must be for a 'real and serious cause'. There are two different categories of 'real and serious cause':
- Personal grounds (motif personnel): Misconduct, professional incompetence, or inability to perform the role. Misconduct itself breaks down into three levels: faute simple (ordinary misconduct), faute grave (serious misconduct, no notice or severance owed), and faute lourde (gross misconduct with intent to harm the employer, no notice or severance owed).
- Economic grounds (motif économique): Financial difficulties, technological changes, business reorganization, or cessation of activity. Economic dismissals trigger additional obligations including employee consultation, redeployment efforts, and for larger-scale redundancies, a full Plan de Sauvegarde de l'Emploi (PSE).
There is also another route that might be useful to know about: that of mutual termination (rupture conventionnelle). This is where the two parties agree on the terms of leaving, including the payment of severance, and has to be approved by the labor administration (DREETS) before it can be considered, although this is probably the most straightforward way of leaving if both parties are agreeable to it.
Termination Process
In the case of a normal dismissal, the employer has to follow a strict procedure in the correct order. Failure to do this, skipping any of the steps, or rushing through the procedure will mean that the dismissal is deemed unfair.
- Convocation letter: Invite the employee to a pre-dismissal meeting (entretien préalable) by registered mail or hand delivery, with at least 5 working days' notice.
- Pre-dismissal meeting: The employer explains the reasons for the proposed dismissal. The employee has the right to bring a representative.
- Reflection period: The employer must wait at least 2 working days after the meeting before sending the dismissal letter (7 days for cadres, 15 days for economic dismissals).
- Dismissal letter: Must clearly state the specific reasons for termination. Vague or missing reasons alone can render a dismissal unfair, regardless of the underlying facts.
Notice Periods
No notice is required for faute grave or faute lourde. During the notice period, employees retain all rights and benefits. Employers can also choose to waive the notice period and pay the employee in lieu.
Severance Pay
Employees dismissed for anything other than faute grave or faute lourde, with at least 8 months of continuous service, are entitled to statutory severance (indemnité légale de licenciement):
The monthly reference salary is calculated as whichever is higher: the average of the last 12 months' salary, or one third of the average of the last 3 months including prorated bonuses. Many CBAs set more generous formulas, and the employee always receives whichever calculation is higher.
For mutual terminations (rupture conventionnelle), severance must be at least equal to the statutory amount.
2026 update: The employer social contribution rate on rupture conventionnelle and employer-initiated retirement payments has increased from 30% to 40%.
Required Documents at Termination
Three documents must be provided to the employee at the end of any employment relationship, regardless of the reason:
- Work certificate (certificat de travail)
- Attestation for France Travail (formerly Pôle emploi), needed for the employee to register for unemployment benefits
- Final pay statement (solde de tout compte), detailing every amount owed
Wrongful Termination
If a dismissal is found to lack real and serious cause, the labor court can award damages based on the barème Macron scale, introduced in 2017, which sets minimum and maximum compensation based on the employee's tenure. Reinstatement is possible but rare in practice.
Resignation
Employees can resign at any time in writing. The same notice periods apply as for dismissals, or as specified in the contract or CBA. No severance is owed on resignation.
Work Permits and Visas in France
Hiring someone from outside the EU into a French role is not impossible, but it will add complexity, lead time, and expense to your recruitment process. The good news is that France has developed a relatively streamlined process for experienced workers through its Passeport Talent scheme. Here’s what you need to know before you make an offer to a non-EU candidate.
When Work Authorization Is Required
- EU, EEA, and Swiss nationals: Free to work in France with no visa or permit required
- Everyone else: Needs both a long-stay visa (visa de long séjour) and a work authorization before their first day. The employer typically initiates the process.
Key Visa and Permit Categories
1. Passeport Talent, Qualified Employee (salarié qualifié)
The most common route for companies hiring skilled international talent. It's designed for highly qualified professionals recruited by a French employer, and it's more straightforward than it sounds.
- Salary requirement: Minimum annual gross salary of approximately 2x the SMIC (around €43,753 gross per year based on the 2026 SMIC)
- Duration: Up to 4 years, renewable, aligned with the employment contract
- Key benefit: No separate work permit needed. The residence permit itself authorizes employment.
- Cost: €225 for the residence permit (€200 tax + €25 stamp duty), plus €99 for the long-stay visa
- Family: Spouse and children can accompany the employee, and the spouse receives unrestricted work authorization
2. Passeport Talent, EU Blue Card (carte bleue européenne)
For highly qualified employees with at least 3 years of higher education, the EU Blue Card offers an additional benefit: easier mobility across EU member states after 18 months.
- Salary requirement: Minimum 1.5x the average gross reference salary (approximately €53,837 gross per year)
- Duration: Up to 4 years, renewable
- Processing: Standard processing times were reduced following 2025 reforms
3. Passeport Talent, Intra-Company Transfer (salarié en mission)
The right route when you're moving someone from a foreign parent company or subsidiary into a French entity.
- Salary requirement: Generally 2x the SMIC
- Duration: Up to 4 years, renewable, equal to the assignment duration
4. Passeport Talent, New Business (création d'entreprise)
For entrepreneurs setting up a business in France rather than joining an existing employer.
- Financial requirement: Minimum annual means equal to the SMIC (€21,876.40 in 2026) and a viable business plan
- Duration: Up to 4 years
5. Standard Employee Work Permit (autorisation de travail)
For non-EU workers who don't qualify for any Passeport Talent category. The process is more involved: the employer applies for work authorization through DREETS, and a labor market test may apply, requiring proof that no suitable local candidate was available first.
- Duration: Typically 1 year, renewable
How the Application Process Works
Regardless of the permit type, the general flow looks like this:
- The employer files the relevant application with the French authorities
- Once approved, the employee applies for a long-stay visa at the French consulate in their country of residence
- On arrival in France, the employee validates the visa online within 3 months. For stays longer than 12 months, they apply for a multi-year residence permit (carte de séjour) at the local prefecture via the ANEF platform
Processing times vary by consulate and permit type, but typically range from 2 weeks to 3 months. Build that into your hiring timeline before you make an offer.
How an EOR Helps with Visas
One practical challenge for companies without a French entity: you need a local employer of record to sponsor work permits through DREETS.
Borderless AI can act as that sponsor, handling the administrative process on your behalf and reducing the lead time and paperwork for your team.
Why Use an Employer of Record in France
If you're a foreign company trying to hire employees within France without a local entity, it's not only difficult but also technically illegal. You're required to first establish a French entity, which can take weeks or months and comes with a host of associated costs.
An Employer of Record removes that barrier entirely. By using one, your employees are technically being hired by a French entity, thus eliminating this requirement. You're able to have someone on the ground within days instead of months.
Here's what Borderless AI handles on your behalf:
- Employment contracts drafted in French, compliant with the applicable CBA
- Payroll processing, gross-to-net calculations, and monthly DSN filings
- Employer and employee social security contributions (URSSAF, AGIRC-ARRCO)
- Income tax withholding (prélèvement à la source)
- Mandatory benefits enrollment, including mutuelle, prévoyance, and pension
- Work permit and visa sponsorship for non-EU hires
- Leave tracking and administration
- Termination procedures, notice periods, and severance compliance
- HR support and employee relations
The practical upside:
- No entity required: Start hiring in days, not months
- Full compliance: CBAs, LFSS reforms, and URSSAF updates are tracked and applied automatically
- Reduced risk: Contracts, terminations, and payroll are managed by local specialists who know French law
- Speed: Borderless AI's owned-entity model means onboarding can happen in as little as 1 to 2 business days
- Cost efficiency: No entity formation costs, no local accounting overhead, no in-house compliance headcount needed
