France is a beautiful European country rich in history and culture. It has a strong economy and an even stronger talent pool, making it a top destination for employers looking to hire remote employees. However, without existing operations in France, you will need to work with a global Employer of Record (EOR) to ensure you are fully compliant with France’s labor and tax laws.
This guide will explore the role and responsibilities of an EOR, the benefits of working with an EOR when hiring employees in France, what the hiring process looks like when hiring through an EOR, and more.
The Benefits and Challenges of Hiring Remote Employees in France
Hiring abroad has become incredibly popular following the global pandemic as workers and employers are no longer tied to one particular location. France is particularly desirable, as the French tend to be highly educated, skilled, and hardworking. They’re also known to prioritize professionalism and productivity.
While there are many benefits to hiring workers in France, it also poses some challenges. For example, quickly and efficiently hiring remote employees and managing a remote team in a different country can be challenging without existing operations in that country. An Employer of Record is a great solution to this common challenge.
What is An Employer of Record?
Any business looking to hire employees in a country where they do not have an office must set up an entity in that country before they can establish a presence there. This process can be incredibly long and drawn out due to the numerous legal challenges involved. For most companies, the complicated nature of setting up operations in a new country is not worth the trouble. This is why Employers of Record exist.
An Employer of Record is a legal entity in the country you are looking to hire from. It’s a proxy for your business and acts as the legal “employer” on paper. An EORs main responsibility is ensuring your company is compliant with France’s tax and employment laws.
The Benefits of Working With an EOR in France
As previously mentioned, working with an EOR helps you bypass the legal headaches caused by setting up an entity in a new country. It also helps you save a considerable amount of money, as setting up operations abroad can be a costly process. An additional benefit is that you can onboard international employees much more rapidly than if you were doing it without an EOR. In some cases, an EOR can help you onboard French employees in as little as two weeks.
Furthermore, France’s labor code is infamous for being extensive and complex, making compliance difficult for any business, even ones that are based in France. Violating the labor code can lead to serious penalties, so remaining compliant is crucial.
An Employer of Record with experience managing contractors in France will help to mitigate the risk of accidentally violating France’s complex tax and employment laws and regulations, as the EOR will have specialized knowledge when it comes to the law and standard hiring practices.
Areas an Employer of Record Can Help With
Below, we have listed some of the specific tasks an EOR will be responsible for.
Drafting Contracts and Legal Documents
The EOR will help manage the administrative tasks involved in hiring abroad, including collecting banking information, tax documentation, and drafting employment contracts and any other required legal documentation.
Managing and Setting Up Employee Benefits
Under France’s labor code, French workers are entitled to certain benefits, including but not limited to
- Private health insurance
- Pension
- Life insurance
- Public transit expenses
- Work injury compensation
- Profit-sharing
Vacation and Public Holidays
France has 11 official statutory holidays in each calendar year, which can be hard to keep up with when you are based in another country with entirely different public holidays. Furthermore, French employees are entitled to 30 days of annual leave. An EOR will ensure your French teammates are receiving their vacation pay and are taking their allotted time off.
Taxes
In France, employers are required to pay payroll taxes which help fund social security. An EOR will offer global payroll solutions including taking care of all necessary payroll deductions so you can rest assured that your business is compliant with France’s tax laws and regulations.
What an EOR Doesn’t Help With
An EOR simply handles the administrative and HR-related tasks involved in onboarding and managing a team of employees overseas. They will not be responsible for any of the following:
- Managing or overseeing day-to-day operations
- Training employees
- Managing employee communications
- Assigning projects
- Hosting team meetings
- Overseeing employee progress
What to Look For in an EOR
When it comes to choosing an Employer of Record to take care of hiring and managing your staff in France, there are certain features you should be looking for.
Specialized Knowledge in the Country You Are Looking to Hire In
Many Employers of Record operate in a long list of countries worldwide, so it’s important to ask questions and ensure that the one you're considering has a team of legal experts specific to the country you are looking to hire from. It’s also key to ensure they have a track record of successfully managing employees there.
Easy-to-Use Online Solutions
Look for an EOR with an online platform that is user-friendly while still being powerful enough to offer numerous functions.
Services That Meet All Your Needs
An EOR should offer a full suite of services that meet all of your specific needs. Ask lots of questions and make sure the EOR you work with can meet all of your requirements and is equipped to handle complex requests.
A Strong Customer Support Team
When it comes to retaining top talent, ensuring they are being paid on time and administrative tasks are being handled is crucial. Because your EOR will be handling these responsibilities, having 24/7 customer support is essential if any issues arise.
Steps For Hiring and Managing Employees Through an EOR in France
Wondering what the process of hiring and managing workers based in France through an EOR might look like? When you work with the right EOR, it’s actually fairly simple, and involves the following steps:
- Determine the staffing needs of your business
- Begin your recruitment efforts
- Conduct interviews and check references
- Find a reliable Employer of Record
- Have your EOR draft locally compliant employment contracts
- Onboard and train your French employee(s)
- Your EOR will register the new employee with the French authorities
- Your EOR will set up payroll and handle other HR tasks
- EOR will consistently make sure you are compliant with French laws
- Focus your efforts on day-to-day operations, retaining your talent and growing your business
Why Borderless Should Be Your EOR of Choice
Working with an Employer of Record is a requirement for any business looking to hire workers in France without having an office there. However, not all EORs are equipped to satisfy your unique needs and requirements. Always look for an Employer of Record platform like Borderless that has experience hiring and managing workers in France and is well versed in the country’s complex laws and employment practices.
Borderless is an Employer of Record that is set up to help manage employees in over 150 countries, including France. Our platform is designed to help companies like yours grow their team and hire, pay, and manage French workers while ensuring you are fully compliant with France’s tax and employment laws.
If your business is looking to hire workers in France and requires the services of an Employer of Record, contact our team at Borderless today to book a demo.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
