Employer of Record Guide in 

France

Vacation Leave

French employees are entitled to generous annual leave provisions under the Labour Code.

Standard Entitlement:

• Minimum: 5 weeks (25 working days) of paid annual leave
• Accrual: 2.5 days per month worked
• Reference period: June 1 to May 31 of the following year
• Payout rules: Unused leave must typically be taken, not paid out

Sick Leave

France provides comprehensive sick leave protection through the social security system.

Sick Leave Provisions:

• Duration: Up to 3 years for the same illness
• Waiting period: 3 days before social security payments begin
• Compensation: 50% of daily salary from social security, often topped up by employer
• Medical certification: Required from day 1 for absences

Maternity Leave

French maternity leave is among the most generous in Europe.

Maternity Leave Details:

• Duration: 16 weeks (6 weeks before birth, 10 weeks after)
• Extended leave: 26 weeks for third child or multiple births
• Compensation: Full salary replacement through social security and employer top-ups
• Job protection: Guaranteed return to same or equivalent position

Parental Leave

Parental Leave Options:

• Shared parental leave: 25 days that can be shared between parents
• Parental education leave: Up to 3 years (unpaid) to care for children
• Part-time options: Reduced working hours with partial compensation

Bereavement Leave

Bereavement Entitlements:

• Spouse/partner: 3 days
• Child: 5 days (7 days if child under 25)
• Parents: 3 days
• Siblings: 3 days
• Grandparents: 1 day

Personal & Family Leave

Additional Leave Types:

• Moving day: 1 day for relocation
• Marriage: 4 days for employee's wedding
• Child's marriage: 1 day
• Training leave: Various entitlements for professional development

Summary

Termination Types

Termination for Cause (Licenciement pour faute):

• Requires serious misconduct or repeated minor infractions
• No notice period or severance required for gross misconduct
• Employer must follow strict procedural requirements

Economic Dismissal (Licenciement économique):

• Due to economic difficulties, technological changes, or restructuring
• Requires consultation with employee representatives
• Higher severance payments and retraining obligations

Termination Without Specific Cause:

• Most common form of dismissal
• Requires "real and serious" reason
• Full notice and severance entitlements apply

Notice Period Requirements

Notice periods vary based on employee category and length of service.

Key Considerations:

• Notice can be worked or paid in lieu
• During notice, employees retain all rights and benefits
• Certain dismissals (gross misconduct) eliminate notice requirements

Severance Pay

Legal Severance (Indemnité légale):

• Applies after 8 months of continuous employment
• 1/4 month's salary per year of service (first 10 years)
• 1/3 month's salary per year of service (beyond 10 years)
• Minimum €1,766.92 (2024 rate)

Conventional Severance:

• Often higher amounts specified in collective agreements
• May include additional benefits or extended notice periods

Probationary Periods

Standard Probation Periods:

• Workers: 2 months (renewable once)
• Employees: 3 months (renewable once)
• Executives: 4 months (renewable once)

During probation, either party can terminate with reduced notice (24-48 hours after first month).

Final Pay Requirements

Employers must provide final payment within specific timeframes:

• Resignation: Next regular payday
• Dismissal: Immediately upon termination
• Must include: Outstanding salary, accrued vacation pay, severance, and any applicable bonuses

Termination Documents & Process

Required Documentation:

• Dismissal letter with specific reasons
• Work certificate (certificat de travail)
• Attestation for unemployment benefits
• Final pay statement

Procedural Requirements:

• Pre-dismissal interview (entretien préalable)
• Minimum 48-hour reflection period
• Written dismissal notification
• Respect for collective agreement procedures

Anti-Discrimination & Retaliation Laws

French law provides strong protection against discriminatory dismissals based on:

• Pregnancy or family status
• Union activity or employee representation
• Filing complaints or exercising legal rights
• Protected characteristics (age, gender, religion, disability, etc.)

Violations can result in reinstatement orders and significant damages.

National Public Holidays

France observes 11 national public holidays, most of which are paid days off for employees.

Regional Variations

Alsace-Moselle Region:

• Good Friday (additional holiday)
• St. Stephen's Day (December 26)
• Different religious observances due to historical German influence

Overseas Territories:

• Additional local holidays specific to each territory
• May substitute certain metropolitan holidays with local observances

Holiday Pay Rules

Eligibility Requirements:

• Must have worked at least 3 months with the employer
• Must have worked the day before and after the holiday (unless on authorised leave)

Compensation:

• Full day's pay for public holidays
• If required to work, receive normal pay plus premium (typically 100% extra)

Bridge Days (Ponts)

When public holidays fall on Tuesday or Thursday, many French companies grant "bridge days" (Monday or Friday off) to create long weekends. This practice varies by company and collective agreements.

Required Documents for Employment

Essential Employment Documents:

• Employment contract (Contrat de travail): Must specify job title, duties, salary, working hours, probation period
• Work permit: For non-EU nationals
• Social security registration: Automatic for French residents
• Tax identification: For payroll tax withholding
• Bank details: For salary payments (RIB - Relevé d'Identité Bancaire)

Additional Documentation:

• Medical examination certificate (for certain roles)
• Professional qualifications verification
• Criminal background check (for specific industries)

Language Requirements

French Language Obligations:

• Employment contracts must be in French
• Workplace communications should primarily be in French
• Foreign employees may request translation of key documents
• Collective agreements and company policies must be available in French

Exceptions:

• International companies may use English for certain executive positions
• Technical documentation may be in other languages if industry-standard

Background Checks & References

Permitted Checks:

• Criminal background (casier judiciaire) for specific roles
• Professional reference verification
• Educational qualification confirmation
• Credit checks (limited to financial roles)

Legal Restrictions:

• Must be relevant to the position
• Require explicit candidate consent
• Cannot discriminate based on protected characteristics
• Must comply with GDPR and French data protection laws

Data Protection & Privacy

GDPR Compliance Requirements:

• Explicit consent for data collection and processing
• Right to access, rectify, and delete personal data
• Data minimisation principles
• Secure data storage and transfer protocols
• Privacy impact assessments for high-risk processing

Employment-Specific Obligations:

• Employee data retention limits
• Consent for background checks and monitoring
• Cross-border data transfer restrictions

IP Assignment & Confidentiality

Intellectual Property Rights:

• Employee inventions belong to employer if created during work hours or using company resources
• Must be explicitly addressed in employment contracts
• Compensation may be required for significant inventions

Confidentiality Obligations:

• Non-disclosure clauses are enforceable
• Trade secret protection under French law
• Post-employment restrictions (limited duration and scope)

Probation Period Setup

Probationary Period Management:

• Clearly defined in employment contract
• Regular performance evaluations
• Documentation of any performance issues
• Proper notice procedures for probation termination

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• French employment contract preparation
• Social security and tax registration
• Payroll processing and compliance
• Leave management and tracking
• Termination procedures and documentation
• Local HR compliance and reporting

Worker Classification: Employee vs. Contractor

French law strictly regulates the distinction between employees (salariés) and independent contractors (travailleurs indépendants).

Employee Characteristics:

• Subject to employer authority and control
• Integrated into company organisation
• Provided with tools and equipment
• Regular salary and social security coverage
• Protected by labour law

Independent Contractor Characteristics:

• Operational independence and autonomy
• Own tools and equipment
• Invoice-based compensation
• Responsible for own social contributions
• Limited labour law protection

Misclassification Risks:

• Significant penalties and back-payments
• Social security contribution adjustments
• Potential criminal liability
• Employee rights retroactively applied

Unionisation & Collective Agreements

France has a complex system of collective bargaining and worker representation.

Key Elements:

• Industry-wide agreements: Apply to entire sectors
• Company-level agreements: Specific to individual employers
• Works councils: Mandatory for companies with 50+ employees
• Union representation: Strong legal protections for union activities

Impact on Employment:

• Collective agreements often provide better terms than legal minimums
• Consultation requirements for major decisions
• Strike rights and procedures
• Specific dismissal and restructuring rules

Cultural Norms & DEI Expectations

French workplace culture emphasises formality, hierarchy, and work-life balance.

Cultural Considerations:

• Formal communication styles and titles
• Respect for hierarchy and seniority
• Strong separation between work and personal life
• Lengthy lunch breaks and vacation periods
• Intellectual debate and discussion valued

Diversity & Inclusion:

• Strong anti-discrimination laws
• Mandatory gender pay gap reporting
• Disability accommodation requirements
• Religious accommodation within secular framework

Remote Work Considerations

Remote work (télétravail) gained significant legal framework following COVID-19.

Legal Requirements:

• Written agreement for regular remote work
• Right to disconnect outside working hours
• Employer responsibility for equipment and safety
• Equal treatment with office-based employees
• Voluntary nature (cannot be imposed unilaterally)

Practical Considerations:

• Home office expense reimbursement
• Insurance and liability coverage
• Performance management adaptations
• Team integration and communication protocols

Cross-Border Remote Work:

• Complex tax and social security implications
• Potential permanent establishment risks
• Immigration and work permit considerations
• Collective agreement compliance challenges