Employment Law

French Rmployment Contract

France requires all employers to provide compliant employment contracts that set out employee remuneration, employee benefits and termination requirements. France has particularly strong and proactive unions, which means employers often need to negotiate with them and may have to enter into collective bargaining agreements (CBAs) with multiple unions. These factors add to the complexity of business expansion in France, so understanding these procedures is crucial. France requires a formal written employment contract. Any contract should include all relevant employment details such as wages, benefits, termination provisions, and severance pay.

Fixed Term

Indefinite

French Working Hours

French workers cannot work more than 44 hours per week (on average over 12 weeks), and the normal working time per week is about 35 hours. Workers cannot work more than 10 hours a day and 48 hours a week.

Overtime pay is variable and is paid at 125% of the regular rate for the first 8 hours (36-44 hours in the workweek) and 150% of the regular rate for any other hours.

When working overtime, rest days (called RTT days) may be accumulated as additional paid vacation days.

These limits may vary depending on the specific CBA.

Holiday Policy

France Vacation

Every employee in France is legally entitled to paid leave, with a mandatory minimum of five weeks. In certain circumstances, a specific CBA may result in certain employees receiving wages in excess of this, for example, when employees are required to work more than the usual maximum of 35 hours per week.

If an employee's contract is terminated, unused vacation time will be paid as a benefit.

We recommend being clear with employees at the employment contract stage so that employees understand bonus provisions regarding their annual salary and bonus structure.

French Sick Leave

Paid sick leave is not common in France due to the country's generous holiday allowance and RTT days accrual. However, employees do have legal protections related to sick leave. If absent from work due to illness, the employee must provide proof of medical certificate within 48 hours. In most cases, employees who are on sick leave cannot be fired. The exact amount of sick pay provided to employees depends on the individual CBA.

Maternity and Paternity Leave in France

In France, workers who have worked for more than one year can take parental leave. One parent can choose to take up to two years off, and the other can take up to one year, both of which must be completed by the time the child is three years old, and the leave may still include part-time work cases in some places.

Parental leave must be renewed annually and workers must apply at least a month in advance, but employers are legally obliged to accept it. An employee cannot be dismissed during pregnancy, while on parental leave or within ten weeks of returning to work.

Employer compensation (if any) during parental leave is determined by the specific CBA, with employees receiving state-funded benefits as standard.

There are further differences in parental leave laws for different circumstances (such as the birth of twins or triplets), so you should always ensure you fully understand the law.

Employee Severance Pay and Termination of Contract in France

In France, the probationary period for new hires is important because if you need to lay off the employee during this period, severance pay is usually much lower.

For termination within the probationary period, a notice ranging from one day to one month must be provided, depending on how long the employee has been with the organization. For termination after the trial period, one to three months' notice is required. The length of this notice period depends on the period of employment and the CBA (it may even extend to more than three months).

Termination after one year of employment generally requires severance pay at the statutory rate of 20% of the monthly salary for each year of employment for the first ten years and one-third of the monthly salary for each subsequent year.

Termination and severance pay in France can be complex and depend on many different factors. If the proceedings become too unmanageable, legal counsel is often advised and the severance package is agreed with the employee out of court.

At Horizon, our French employment experts can take care of everything for you, helping you stay compliant and making negotiations as easy as possible.

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's French PEOs can reduce risk for foreign companies and provide guidance during the process.  

French Taxes

France has a progressive tax system, so the higher an employee's income, the more tax they pay. The rate ranges from 0% to 45%, depending on factors such as whether they are an individual or part of a married couple, and how many children they have.

The surcharge is 3% on income over €250,000 and 4% on income over €500,000, which is also affected by marital status and the number of children.

There are also various social security contributions covering various state benefits such as health care, pensions, unemployment benefits, etc. Employers are typically required to donate about 45% of their salaries to these causes, while employees' total contributions are about 22%.

Health Insurance in France

Healthcare in France is state-run and employees must pay into a health insurance plan. These contributions are automatically deducted from their paychecks. Depending on the type of care, medical expenses may be partially or fully reimbursed.

Additionally, employers are now required to contribute to private insurance funds to be combined with state medical reimbursements. The amount of contribution is determined by CBA.

Salary and Benefits

French Compensation Law

As of 2020, the minimum wage in France is €1,539.42 per month. If there are provisions in the CBA, the rate may be higher, or additional benefits may be included.

Welfare Management in France

Setting up a French employee benefits system for your employees can be a long and difficult process. With different languages ​​and complex employment laws, ensuring a robust and compliant system can take a lot of time and cost your organization a lot of money (for more information on mandatory employee benefits, see our French employee benefits Employer's Guide).

At Remoly, we specialize in the setup and management of employer of record and PEO employee benefits systems in France, so you don't have to. We will use our knowledge and experience to handle everything to ensure you are compliant and ready to be employed in France.