May's Paying people abroad: Our neighbours across the channel

Paying people abroad: France

Every month here on Ceridian Connection, we'll take a look at employing and paying people abroad - the potential pitfalls and problems, and advice on what to do, where to go, etc. First up, it's France, a country where employees enjoy a number of privileges, and where employers need to be particularly aware of complicated legislation.

Recruiting people

Before recruiting people in France, you have to seek advice regarding your legal structure, as you may need to register officially (if you have not already done so) as a company in France.

There are a number of different types of contract:

• CDI - a permanent contract
• CDD - a fixed-term contract
• Contrat apprentissage - for internships
• CJE - for staff between the ages of 16 and 25

Once you have found staff, and offered them a job, you must declare the new hire to an organisation called URSSAF, at least 24 hours before the new employee starts work. Failure to do this may result in penalties.

You must also register your company with the local medical centre, and every new hire must visit this centre before the end of their trial period for a health check, and every two years thereafter. Again, failure to enforce this could result in fines.

Paying people

You have a responsibility to prepare registration for pensions and life insurance, and you must apply for French National Insurance numbers for employees who do not have them.

Holiday rights are generous compared to the UK. Paid entitlement is usually 5 weeks, although employees have to accrue holiday rights before they can take them. Many organisations have added to the standard 5 weeks' holiday as a result of the law which requires employees to work 35 hours per week. In some cases, employees work 39 hours per week and accrue an extra 2 days per month, called RTT (recuperation of time worked).

According to the law, overtime between the 36th and 39th hours of work per week has to be increased by 25%, and anything over that, by 50%. Any income based on that overtime is not subject to income tax.

Paid sick leave does not apply for the first three days in France, unless you have a specific arrangement. However, from the 4th day of sickness absence, employers are required to pay staff who have been with the business for at least 1 year. Employers can have this reimbursed by an organisation called CPAM.

Approximately 20% of an employee's gross salary will go towards pensions, health insurance, family benefits and life insurance, as well as a number of other charges which must be detailed on the payslip.

Employers must contribute approximately 40% of an employee's gross salary, making France one of the most expensive countries in which to pay people.

*****

Ceridian International Services pays people in over 50 countries around the world, keeping them compliant and ensuring that they manage costs and gain more control over their international payroll wherever they are. For more information on our International services, call us on 0800 0482 737.