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» Work and Residence Permits
France is part of the European Union. A foreigner
residing in France who wishes to set up a business or be employed in France must do the
following:
• Citizens from the following EU states do not need any work or residence permit for France: Austria, Belgium, Cyprus,
Czech Republic, Denmark, Estonia, Finland, Germany, Great Britain, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden. This is extended to citizens from the EEE (Iceland, Norway and
Liechtenstein) as well as to citizens from Switzerland.
• Citizens from EU states in the transition period (Bulgaria and Romania) must have a work permit.
• If the foreigner is a citizen of a country that
is not a Member of the European Union, she/he has specific formalities to
carry out. These formalities differ from one country to another and she/he
is advised, foremost, to contact the French Embassy or the French consulate
of his or her original country. In all cases, she/he has to contact the
French Foreign Labor Department.
» Employees' Rights
The Labor Code, collective bargaining agreements, regulations and individual
employment contracts govern relations between employers and employees.
For many years, France has provided for employee rights and protection.
New laws will soon complete the already existing legislation.
Following is a list of the principal measures:
• It is a prerequisite that an employer declare
new employees to the Social Security office.
• The employer must provide a work contract or
a pay slip.
• Every newly-hired employee is subject to an initial
trial period varying from a few days to 4 months, depending on the position
to be held in the company. During this period, the employer as well as
the employee can break this work contract.
• When an employee of a French company wishes to
leave, she/he must give prior notice. The notice can be a few days or up
to 3 months.
• Once the trial period is over, an employer cannot
lay off his or her employee without a real and serious reason. Otherwise,
she/he will have to pay an indemnity to the dismissed employee.
• The employee and the employer areresponsible
for mandatory Social Security coverage. It includes the state
mandatory Social Security Plan covering health, accident, life insurance,
family allowance, and old age pension; the state mandatory Unemployment
Plan; and a private mandatory Retirement Scheme, including a supplementary
pension scheme, and a complementary retirement scheme for executives.
Additional non-compulsory schemes are possible, depending on the agreements
between employers and employees.
• The French law forbids all forms of discrimination
on the basis of race, faith,sex or color.
• Work conditions are subject to governmental control,
and the intent of the legislation is to define the rights and obligations
of the employee and the employer.
• The Work Inspection Bureau, the Health and Safety Commissioner, and "Médecine du travail" (Occupational
Medicine) may operate controls regardless of the business activity.
Other important measures have been taken and are worth mentioning:
• Besides the French National Labor Market, there
exists a collective bargaining agreement for each market sector, which
both employers and employees must abide by and which defines the limitations
on the relations between employer and employee.
• Since January 1st 2000 the legal working period is of 35 hours per
week. Overtime is due by the employer and is subject
to a 25% (from the 36 to 43 hour) to 50%(starting from the 44 hour) increase on the salary base as agreed with the employer.
• An employee cannot be remunerated below the minimum
legal salary requirement (S.M.I.C.), which is revised regularly.
• Every employee benefits from 5 weeks' paid holidays
per year, which is the legal requirement, after one year's presence in
a company. Some businesses and industrial sectors offer additional benefits.
• Social Legislation on companies can also provide
for optional or compulsory employee share taking in company performance,
such as share taking on profits, company savings plan, and incentive bonuses.
Employee share taking is calculated according to criteria defined by law.
» Social Charges
For many years now, France has sought to improve the social security cover
of salaried personnel.
France has a national system of health, unemployment insurance, and retirement
pension fund insurance, which applies to all employers established in
France.
In the absence of a Social Security Treaty or other agreement, an employer
established outside France, but with an employee working in France, is
subject to the French system, as is the employee. In this case, the employee
in France must file and pay his own as well as his employer's French contribution.
Social welfare covers health and life insurance and guarantees insurance
in the event of unemployment, together with the allocation of a retirement
pension. Social welfare is financed by the employer's social contribution
as well as by the employee.
All employers (and this includes foreign employers, unless exempt by treaty)
have a legal responsibility to account for health and unemployment insurance,
and a mandatory and complementary executive pension scheme contribution
relating to all amounts paid to employees.
"All amounts" include: salaries, reimbursements, bonuses and non-cash
benefits.
Employers are liable for the employee's share of contribution as well
as the employer's, since the employers are obliged to withhold employees'
contributions.
Payment of Social Security and Unemployment Insurance is due monthly for
companies with nine or more employees, quarterly for others.
Payment of Retirement Pension Contributions is due quarterly.
In general, employers also have Mutual insurance and Supplementary Schemes
for their employees.
» Compulsory Social Charges - Year 2010
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