BRIO PAYROLL

Hiring in France as a foreign company: Where to begin?

 

Hiring an employee in France as a foreign company is an exciting but potentially complex endeavor. To succeed, it’s crucial to understand the initial steps involved. In this article, we will guide you through the process, whether you’re a foreign company looking to establish a presence in France or simply expanding your operations in the country.

 

**1. Establish Legal Presence in France:**

Before you can hire, you need to establish a legal presence in France. This can be in the form of a subsidiary, branch, or another appropriate legal entity. This step is critical to comply with French laws.

We can help you obtain NRE status (Non Residents entity: Company Without Establishment in France).

Created in 2004, it allows foreign companies that do not have an establishment in France to hire employees covered by the French Social Security system.

It allows them to more easily comply with French legal obligations without having to be physically on the territory. All procedures can be done remotely.

Tax and social security procedures are simplified. Which implies a reduction in costs compared to the creation of a traditional company in France.

This step is crucial to comply with French laws.

**2. Define Contractual Obligations:**

Create a clear and legally compliant employment contract. It should outline job details, employment terms, compensation, and benefits.

**3. Manage Immigration Requirements:**

Ensure your candidate has the right to work in France. For EU nationals, this can be easier, but for others, work permits may be required. 

**4. Compliance with HR Regulations:**

Familiarize yourself with French labor laws, including applicable collective agreements in your industry. Ensure compliance with standards like minimum wage, leave policies, working hours, and more.

**5. Collect and Pay Social Contributions:**

Calculate and pay employer and employee social contributions, including those related to social security, retirement, and unemployment insurance…

**6. Prepare Payslips:**

Generate payslips that comply with French legal requirements for your employee. They must include all deductions and contributions.

**7. Adhere to Collective Bargaining Agreements 

Collective bargaining agreements (CBA) are agreements concluded between trade union organizations representing employees and employers or groups of employers, applicable to a sector. They define all employment and working conditions and social guarantees.

Your company must adhere to the collective agreement applicable to its sector, its field of activity, because this sets sectoral standards in terms of wages and working conditions.

**8. Tax Control and Accounting:**

Make sure you comply with tax and accounting regulations in France. It may be helpful to work with a local chartered accountant.

**9. Employee Onboarding:**

When everything is in place, welcome the employee, provide training if necessary, and make sure they have everything they need to work effectively.

**10. Compliance Monitoring:**

Stay informed of changes in French labor and payroll legislation, and adjust your practices accordingly.

 

If you want to hire one or multiple employees, we can help you in each step mentioned below, directly or through one of our local partner.

 

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