PEO & Employer of Record in France | INS Global
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PEO in France

Hire Globally, Pay Locally, Expand Effortlessly

Suppose you intend to expand your operations into France. In that case, you may be aware of the complications that can arise when setting up and maintaining a new entity. Company incorporation takes time; going through the required steps means fees and man-hours spent that could otherwise be directed towards company growth. Additionally, ensuring regulatory compliance and managing HR operations such as payroll means hiring new staff pulling staff away from other tasks.   

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Want to have a Team in France TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in France - Summary

5 Advantages of a PEO in France

Expert Legal Compliance

Enjoy the expertise of a team of experienced legal specialists, whatever challenges may arise 

Fewer Overheads

The tasks that would take an entire team or department can be accomplished with just one monthly payment 

Fewer Distractions

Focus on your business goals and leave the complications of day-to-day HR operations to us 

Accelerated Market Entry

Company incorporation in a foreign country can take months, while with a PEO, you can be operating in France in a matter of days  

Streamlined Services Platform

Work with one point of contact to take care of every service necessary from the day you begin 

What Benefits Does a PEO Give Over Company Incorporation?

The cost of opening a new company in a foreign country and then maintaining it can be cumbersome for a business that wants to focus on growth and success in the new market. A PEO offers a way for companies to operate in their market of choice without worrying about all of the downsides involved in Company Incorporation or entering into any kind of Joint-Venture agreement.  

A PEO: 

  • Let’s you maintain control 
  • Gives you more flexibility  
  • Requires less setup costs and time 
  • Ensures full regulatory compliance 
Hiring an Overseas Employee

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How Does a PEO Work in France?

  1. We first arrange a meeting with our expert to discuss your needs. They’ll form a plan based on your individual project requirements and circumstances.  
  2. INS Global will provide you with a local legal entity through which you can bring your operations to France.  
  3. We hire your employees and/or take charge of their HR needs on your behalf as you wish 
  4. You and your staff continue to operate as usual, working towards your company success while we take care of the rest 

How Do PEOs and EORs Differ?

Companies seeking to simplify their HR service needs will likely see references to both Professional Employer Organization (PEO) and Employer of Record (EOR) services. The benefits they provide are similar, but they differ in how they deliver them.   

  • A PEO provides HR services to employees of other companies as a third-party provider.  
  • These services can include any or all HR elements, from onboarding to payroll. 
  • The contract is made between the services provider and the client company in this case.  
  • An EOR provides HR services to employees of other companies as their legal and official employer 
  • The services provided don’t differ from a PEO 
  • In this case, the EOR makes a contract directly with the employee (as directed by the client company) and legally hires them  
 

It’s important to understand the possible differences to choose the type of service that suits you and your needs best. This may depend on the size of your company or whether you already have some presence in the target market and wish to hire workers on a more temporary basis.  

INS Global offers both PEO and EOR services in France according to your needs.  

For a complete breakdown of the differences, you can read our article on the subject.  

Labor Law in France

Employment Contracts

Contracts in France must be first understood alongside the Collective Bargaining Agreement (CBA) that applies to them. This depends on the industry and the type of work involved. 

France allows for two types of contracts, Fixed Term (CDD), and Permanent (CDI).  

A CDD can only be offered for a specific temporary basis with a known end-date, such as temporarily replacing a worker. It must include a written contract.  

France has a minimum wage. In 2022, this is EUR 10.57 (hourly gross). 

Work Hours and Overtime

A Standard work week in France is 35 hours. While this may be the legal standard, this is not necessarily the case in practice.  

According to the labor law, anything outside the standard 35 hours per week is considered overtime.  

For overtime work, the rate is 1.25x standard salary for the first 8 hours and 1.5x standard salary beyond that. 

While legally, an employer only has to offer 20 minutes of break every 6 hours, it should be noted that lunch breaks are expected to be long, potentially 1.5 or 2 hours.  

Holidays and Annual Leave

There are 11 days of annual paid public holidays in France (with 2 additional days in some parts of the country). Ten of these are technically at the discretion of the employer and should be included in the employment contract.  

Many companies may also include “bridge” days to extend public holidays that fall on a Thursday.  

French workers are entitled to 2.5 days of paid annual leave per month worked, or 5 weeks annually, with some restrictions as to when this leave can be taken.  

Sick Leave

Employees who have worked consistently for 90 days or have paid a set amount into their social security for 6 months before falling ill are eligible for up to 6 months paid sick leave in France.  

Employees wishing to take paid sick leave must provide a doctor’s note as proof.  

Sick leave allowance is typically 50% of standard salary, and is paid by social insurance. Some circumstances can raise this, like having 3 or more children, or if the employee has worked for their company for more than a month. In either circumstance, the sick leave allowance is raised to 90% of gross salary.  

Sick leave allowance decreases after 3 months of illness.  

Maternity and Paternity Leave

A Standard work week in France is 35 hours. While this may be the legal standard, this is not necessarily the case in practice.  

According to the labor law, anything outside the standard 35 hours per week is considered overtime.  

For overtime work, the rate is 1.25x standard salary for the first 8 hours and 1.5x standard salary beyond that. 

While legally, an employer only has to offer 20 minutes of break every 6 hours, it should be noted that lunch breaks are expected to be long, potentially 1.5 or 2 hours.  

Tax Law and Other Contributions 

 Individual taxes are paid on a progressive scale from 0 to 45% and also depend on the familial status of a taxpayer.  

For social security contributions, the employer is obliged to contribute around 45% of the employee’s gross salary, while the employee contributes between 20-23%. These payments provide employees with all benefits of medical, unemployment, accident, and pension insurance. 

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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