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Hiring in France

Background checks in France

Hiring employees in France

Language requirements in France

Corporate presence requirements and payroll setup in France

Employer of record in France

Businesses that want to hire in France typically need to set up a local legal entity, which takes time and money. Employers in France also need to understand the complexities of the payroll system, which means withholding taxes and social security contributions from employee wages and remitting them to the relevant authorities. Plus, strong labour laws and wide-reaching collective bargaining agreements mean there are many limitations on what employers can do in France. Understanding these restrictions is key to ensuring compliance, but there’s a lot to learn.

One alternative option is to take on French workers as independent contractors or freelancers. This approach lets you avoid the complexities of tax withholding and payroll deductions since independent workers are responsible for declaring and paying their own taxes. However, there is a big risk of employee misclassification, which could land your company with serious fines and penalties. The solution? Work with an employment partner like an employer of record (EoR) to engage employees on your behalf.

What is an employer of record?

An employer of record (EoR) is an organisation that hires employees on behalf of other companies. When you work with an EoR, it will be your workers’ official employer for legal and tax purposes. However, you’ll still retain control of your day-to-day operations.

EoRs handle various HR processes on behalf of their clients, including payroll, benefits administration, onboarding and absence management. They’re also responsible for complying with labour laws and regulations, meaning you can simply concentrate on finding the right people for the job.

What is an employer of record in France?

In France, employers of record work a bit differently than in other countries. Legally, this is considered to be the ‘leasing’ of employees from one company to another, which is only allowed under strict circumstances. Companies that offer this service are commonly called ‘entreprises de portage salariale’, or umbrella companies.

When an umbrella company is used, employees continue to be part of the lending company’s workforce, which means that they are entitled to all provisions of the relevant collective agreement. However, the user company is responsible for ensuring acceptable working conditions for the employee. The employee must also have access to any collective facilities available to other employees of the user company.

Hiring in France with or without an EoR

Whether or not you choose to work with an employment partner such as an EoR, hiring employees in France requires a certain level of knowledge of the rules and regulations that apply. In this section, we’ll take you through some of the most important things you should understand before recruiting French employees, including the different engagement options available, legal requirements for employment background checks, and the process of setting up payroll in France.

Hiring in France

France is the third-biggest economy in Europe by GDP, and the seventh-largest in the world. It’s an advanced industrialised country in a strategic location in Europe, boasting a highly educated workforce. All of this means that France is a popular destination for international expansion.

But expanding your business to France (or even just hiring a few local employees) requires a solid understanding of the labour laws, tax regulations, norms, and customs that apply there. We’ll cover some of the basics in this section.

Labour laws and regulations in France

Labour laws in France tend to be favourable to employees and provide them with a good level of protection. While employers and employees are free to negotiate the specific terms and conditions of their employment agreement, employees have certain minimum rights under the law.

The main piece of employment legislation in France is the Labour Code (Code du Travail), which is made up of laws, regulations, and decrees and determines almost every aspect of French employment law. European legal instruments, including EU Treaty provisions, regulations, and Directives, as well as the European Convention for the Protection of Human Rights and Fundamental Freedoms, also play an important role.

Collective bargaining agreements in France

Collective bargaining agreements and collective company agreements play a crucial role in French employment law. They’re agreements between employers (or groups of employers) and trade unions, which can apply to a company, a group of companies or an entire industry. They set minimum terms for things like working conditions, working hours, minimum wages, and holidays. Around 95% of French employees are covered by a collective bargaining agreement.

The cost of hiring in France

The average salary in France was EUR 31,481 in 2023. This is close to the EU average (EUR 28,217). Employers hiring in France also need to take into account the following expenses:

Social security and unemployment contributions.
Health insurance.
Life and accident insurance.
Pensions.
Contributions to the professional training budget.
Recruitment costs.

Risks of hiring in France

Hiring in France comes with many risks, which potential employers and employees need to understand. For example, misclassifying an employee as an independent contractor (whether deliberately or accidentally) carries a significant risk of fines, penalties, reputational damage, and other consequences.

There are also tax risks involved. For example, depending on the nature of your French expansion, your company could be deemed to have a ‘permanent establishment’ in France, which could trigger an obligation for corporate taxes. It’s important to fully understand the tax, business, and compliance risks you might run into before hiring in France.

Background checks in France

Employers in France may carry out background checks to verify information gathered during the recruitment process and confirm a candidate’s suitability for a role. However, there are certain limitations on the background checks that employers can perform, which it’s important to understand before hiring.

Required background checks in France

Employers in France are responsible for checking that the people they engage have the legal right to work in the country. EU, Swiss, and EEA citizens have the automatic right to work in France, while employees from third countries need a valid work permit.

Employers must also perform a preventative and informative medical assessment on each employee within three months of starting work. This is to ensure that they have no underlying health conditions that would prevent them from safely performing the role. It is not required if the employee has already been subject to such a health check in the past five years.

Other possible background checks in France

Here are some of the other types of background checks employers can perform in France:

Criminal background checks: Criminal background checks in France are only allowed when called for by the role the employee has applied for. For example, they may be required for jobs in healthcare or security. Apart from in certain limited circumstances, only the employee themselves can request a copy of their criminal record. Employers are not allowed to use irrelevant or minor offences to disqualify a candidate.
Employment history checks: Verifying a candidate’s employment history is a common type of background check in France. It helps employers to confirm the candidate’s professional experience and reliability.
Reference checks: Following up with an employee’s references is also a common type of background check in France, which gives potential employers insights into the candidate’s work ethic and past performance. Obtaining the consent of the candidate is advised.
Educational verification: Assessing the authenticity of a candidate’s educational qualifications is also a common type of employment background check in France. It usually requires the consent of the candidate.
Financial background checks: Financial background checks (or credit history checks) are only allowed in France under very narrow circumstances. For example, they may be permitted when a role involves a significant amount of responsibility for a company’s finances.
Social media checks: Social media checks are technically possible in France, but employers are advised to be cautious as they could violate an employee’s right to privacy. Obtaining the candidate’s written consent and keeping the focus on job-related aspects of their online presence is best practice.
Health records and drug tests: These are only possible in certain limited circumstances. For example, it may be possible to ask a candidate for their health records if a role requires certain physical abilities. Drug tests may be permitted for safety-sensitive roles.

Limitations on background checks in France

Employment background checks in France are subject to data privacy laws including the General Data Protection Regulation (GDPR) and the French Data Protection Act, as well as sector-specific legislation. Obtaining written consent is typically not mandatory but is recommended for documentation and compliance.

Background checks must always be relevant to the job position in question, and employers may only collect data that’s needed to assess professional skills and suitability for the role. The employer’s right to collect information needs to be balanced against the employee’s right to privacy.

Certain information is always off-limits to background checks in France. For example, collecting information about an employee’s religion, political views, sexual orientation, or union affiliation is not allowed, and refusing a job on these grounds could lead to discrimination charges.

Hiring employees in France

Before hiring employees in France, it’s important to consider whether this is the right engagement structure for your situation. For example, if you only need a worker for a short period to complete a one-off project, it may be better to engage an independent contractor. However, employers in France need to ensure that their workers are correctly classified to avoid fines and legal trouble.

Main hiring options in France

Here are the main options if you want to engage workers in France:

Employee: Employees are workers engaged through employment contracts, who work under the direction and subordination of their employer. In France, the standard arrangement is a permanent (contrat à durée indéterminée or CDI). Fixed-term contracts (contrat à durée indéterminée) can only be used in limited circumstances. Employees can be full-time or part-time.
Independent contractor: An independent contractor in France is a worker who works for a company but is not their employee. They may be engaged directly or through a personal services company. Independent contractors are responsible for managing and paying their own taxes and social security charges and are not entitled to the same rights and protections as employees.
Agency worker: An agency worker is a worker who is employed by a temporary employment agency and leased out to user companies. The use of agency workers is strictly regulated in France. For example, they can only be used for certain fixed reasons, and maximum durations apply.

Employees vs. independent contractors in France

In France, independent contractors are not entitled to the same rights and protections as employees. For this reason, the French government takes issues of employee misclassification seriously.

The contract in place between a worker and an employer is usually a good indication of the worker’s employment status. However, courts will also consider the actual facts of the situation when determining if a worker should be classed as an employee or an independent contractor. These might include:

Whether the worker is responsible for organising their own schedule.
Whether the worker is under the subordination and control of the employer.
Whether the worker uses their own work tools.
Whether the worker can simultaneously work for other employers.
Whether the worker sets their own pay rate.
Whether the worker can delegate or subcontract work.

Penalties for employee misclassification in France

The consequences of misclassifying employees as independent contractors in France could include:

Significant fines and penalties.
Back payment of taxes.
Back payment of employee benefits.
Reputational damage.
Other legal consequences.

Language requirements in France

According to Article L. 1321-6 of the French Labour Code, all employment documents containing employee obligations or that are necessary for the employee to perform their job must be written in French. It’s possible to provide a translated version in another language if needed.

This does not apply to documents received from abroad or provided to foreigners. However, in practice, a judge may consider a document in another language to be inapplicable. Even international companies that operate in English or another language should provide a translated or bilingual version of official documents for French employees to avoid legal trouble.

Language requirements to live and work in France

There are no specific language requirements to live and work in France, as long as the person in question has the right to be there (for example as an EU citizen). However, finding employment and integrating into French society will likely need at least a certain level of written and spoken French.

Language requirements for visas and citizenship in France

The language requirements for visas and permits in France depend on the specific visa or work permit applied for. Some of them carry no language requirements, while others require applicants to prove proficiency up to B1 level on the Central European Framework of Reference for Languages (CEFR).
Applicants over the age of 65 may be exempt from such requirements.

Applicants for French citizenship must prove that they have at least B1-level French unless they have obtained at least a high-school level diploma in France. A recent change to the rules will bring in new language requirements in January 2026, requiring applicants to show they have at least B2-level French.

English language in France

English is not as widely spoken in France as in other European countries. According to Education First’s English Language Proficiency Index, France ranks 33rd out of 35 countries in Europe, and 49th out of 116 countries in the world. Proficiency is higher in large cities such as Paris and in areas that experience a lot of tourism.

Corporate presence requirements and payroll setup in France

Foreign entities can technically engage employees in France. However, they must first register as an employer with the labour authorities and the French national employment agency, France Travail (formerly Pôle Emploi). In many cases, setting up a local business entity is required. There are also various registration requirements required for payroll compliance in France.

Steps to set up payroll in France

Here are the steps to follow to set up and run payroll in France:

Register with the French social security agency (URSSAF): There are several regional centres. Registration should be done in the one closest to the company’s registered address.
File a Declaration Prior to Hiring (DPAE): This declaration is used to report every new employee to URSSAF.
Register employees on a staff register: This is an official document employers must use to record the number of employees within their organisation. Employees must be registered immediately upon hiring.
Register employees with a pension fund: Employers can find out which pension fund applies to them by checking the relevant collective bargaining agreement.
Register with the local tax authority: This can be done on the website of the tax administration.
Draft compliant employment contracts: These must follow minimum standards set out in employment law and any relevant collective agreements.
Organise medical visits: Employers must organise medical visits for each employee within three months of their start date. Employees who have already had such a medical visit in the past five years are exempt.

These are the steps to follow for businesses that are already established in France. Foreign businesses may have to comply with additional requirements.

Do you need a French bank account to run payroll in France?

There is no formal obligation to set up a French bank account for payroll compliance in France. However, it might make things easier administratively.

Easily hire employees in France with our EoR solution

Hiring employees in France usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC.

Through our EoR solution, you can confidently hire employees in France, without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.

Read about EoR services

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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