Global HR & Payroll

Expanding to France can open the door for your company in Europe and puts you in good company. Over the past five years, France has attracted the most foreign investment in Europe, and presents a good opportunity for growth and success. Among the country’s main exports are:machinery, vehicles, pharmaceuticals, and perfumes & cosmetics. 

After World War II, France grew to become an international hub of business and economics. With its ties to Germany, Italy, Spain, the UK, and the Netherlands, France served as a central place for trade and commerce.

Business owners who choose to expand to France are faced with some of the most complex payroll, tax, and HR regulations, paired with the unique nuances of French culture and style. To correctly navigate through those complexities and avoid fines and fees, you need an international specialist as your partner. That’s where IRIS’s comprehensive HR and payroll services can help.

French employees are subject to payroll taxes that must be correctly withheld and reported by employers. Non-compliance with these regulations will result in fines, fees, and potential legal action. As a bare minimum if you are looking to expand to France you should be aware of French social security (la Sécurité sociale or la Sécu) and French pension (retraite de base).

Employers are also expected to withhold and remit income taxes based on employees’ gross pay. French tax brackets are complex and are determined on a progressive scale. This scale ranges from 0% tax up to 45% depending on the total household income and family size. 

IRIS provides comprehensive coverage for all of your French employees, ensuring that payroll tax calculations are done correctly every time, no matter how complex they might be.

In France a formal job offer must include an official employment contract (“contrat à durée indéterminée,” or CDI). This contract serves as the foundation of the professional relationship, outlining the workplace responsibilities of the employee, the benefits, and compensation. 

A CDI is required for a long-term full-time position, but there are also contracts for temporary workers, apprenticeships, work-study contracts, interim contracts, and part-time contracts. While there are some similarities between contracts, each type has unique criteria that need to be included.

Writing a French employment contract is complex, but with IRIS, we’ll handle it for you. Our international team of experts will create the contract you need and manage the translation of it, ensuring that all necessary elements are included.

French citizens are entitled to a long list of workplace benefits. As you expand to France, it’s important to remember that these standards are the lowest possible offer a company must provide, and most companies offer additional benefits to be competitive in the market. 

Common French benefits include:

• Life insurance (prévoyance) for all managers. If the company does not provide life insurance and there is an accident that results in injury or death, the employer is required to pay out the family three times the annual social security ceiling. 
• Public transportation – If your employees need to commute to work, employers must cover 50% of the employees’ expenses for public transport in their commute. 
• Profit sharing
• Termination indemnities

In addition to these benefits, there are a few common laws that some employers would see as benefits, like France’s 35-hour workweek, maternity leave that can be extended to up to 26 weeks (roughly 6 months), paternity leave, and five weeks of mandatory PTO every year. 

IRIS helps track and manage those benefits, ensuring you are compliant with all French regulations.

The City of Light is known for being a global capital of fashion and cosmetics, but it also is a major city for cybersecurity, aeronautics, fintech, health tech, and renewable energy. Expanding to Paris is a major step for any company, but it’s a major investment that needs to be managed correctly to get the best results.

Like other international cities like New York, Paris has business districts where similar companies and industries are gathered together. When you expand to Paris, it’s important to make sure you are located in the right area.

As the oldest city in France, Marseille is a port town in southern France that sits on the crossroads of trade between Africa, Europe, and the Middle East. Sitting on the Mediterranean Sea, Marseille provides your company with simple and direct access to an international supply chain.

While Marseille is an old city that can feel like you are stepping back in time as you wander the streets, it is simultaneously pushing cutting-edge technology and supporting small and medium-sized businesses that are starting to break out and be innovative. It is dedicated to creative and digital industries and is always trying to help inspire and facilitate the entrepreneurial ecosystem.