France has a long tradition of civil law that stems from Roman times. Legislation like the Labor Code, Social Security Code, and French Constitution includes extensive regulations that protect the rights of both employers and employees. Your PEO will ensure that you stay compliant with these regulations, but you should still be familiar with some of the major rules that define employment in France, including:
1. Employment Contracts
Contracts in France can be verbal, but since a written statement of the particulars is also required, full written contracts are preferred. Fixed-term contracts, or contrats à durée déterminée, are only allowed for non-durable work in France. They can normally last for a maximum duration of 18 months, including renewals, though this can be extended to 24 months for work based abroad or to replace a worker who is on leave and whose role will then be discontinued.
2. Working Hours and Overtime
French employees work only 35 regular hours a week. They can work up to ten hours a day, including overtime, 44 hours a week during a 12-week period, and a maximum of 48 hours in any one week. They must normally be paid 125% of their normal wages for the first eight weekly hours of overtime they work, and 150% after that. However, collective agreements may adjust these rates, but not below 110% of normal wages.
3. Minimum Wage
The minimum wage in France was last updated in November 2024, and is set at 11.88 EUR (Euros) per hour (around 13.80 USD) or 1801.80 EUR per month (around 2,095 USD).
While this wage protects nearly all workers, apprentices and workers on professionalization contracts can be paid less, with rates ranging from 486.49 EUR to 1,261.26 EUR per month, depending on their age and year of work experience.
4. Employee Benefits
French employees are entitled to a number of mandatory benefits that include paid annual leave, paid public holidays, and free lunches or meal vouchers. Leaves for sickness, maternity, paternity, and adoption are also required.
5. Payroll Tax and Social Contributions
Employers in France must calculate their employees’ income taxes, withhold them from their paychecks, and remit the funds to the DGFiP. The French tax system is progressive, and employees pay between 0% (on earnings less than 10,777 EUR) and 45% (on earnings over 168,995 EUR).
Employers and employees must also make contributions to social schemes in France. Employees are deducted between 20% and 23% of their earnings, while employers contribute around 45% for health, maternity, disability, death, family, old-age, unemployment insurance, and workplace accident insurance benefits.
6. Termination and Severance Pay
Workers in France cannot be terminated at will. Instead, employers need to provide personal or economic justifications to terminate their employees. Other than in cases of gross misconduct, French workers must give and are entitled to 30 days’ notice once they’ve worked for three months. After working for one year, employees also become entitled to severance pay that is calculated based on the length of their service to the employer.
7. Foreign Workers
You can hire foreign nationals with the help of a PEO in France. European Union citizens may work legally in the country, while workers of other nationalities need to obtain both residence permits and visas for employment purposes. To obtain these permits, the employer normally has to first apply to the French Immigration and Citizenship Office (OFII) to sponsor work permits for their employees.