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July 4, 2023
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3 mins
France, ranking as the third-largest economy in Europe, showcases strong economic growth and holds the impressive 19th position in terms of GDP per capita. The country's flourishing sectors include tourism, agriculture, and industries, with notable advancements and expansion in these areas.
Employment contracts are a legal requirement in France. If you are looking to hire someone from France, it is essential to have a good understanding of the country's employment laws, benefits, allowances, and other relevant information. This segment provides employers with the necessary knowledge to navigate the French employment landscape effectively.
In France, there are two types of Employment contracts; CDI (Permanent employment) and CDD (Temporary employment). According to the France employment laws, CDI (contrat à durée indéterminée) is provided to an employee for continuing and indefinite service. CDI (contrat à durée déterminée) is provided to an employee hired for temporary employment and can not be extended over 18 months of service.
While French is the preferred language for employment contracts in France, both employees and employers have the flexibility to choose to have the contract translated into other languages if desired.
The probationary period for employees ranges from 1–3 months.
In France, the payroll cycle is typically set on a monthly basis.
The minimum wage in France is based on the age and position of the employee. It ranges from €433 — €1603.12 per month.
The companies are entitled to compensate employees for overtime hours worked in the following structure:
The 13th month’s pay is not mandatory in France. However, the employer can provide it on mutual agreement and is paid at the end of the year.
Here are some of the benefits that employees are provided for by their employer:
The standard rate of Value Added Tax in France is 20%.
The employer can terminate the employment contract based on a valid reason (personal or financial reasons) or mutual consent or if the individual is retiring.
The notice period for employees under the probation period is up to 5 days while regular employees will have up to 3 months.
The severance pay varies based on the individual’s service to the employer. The statutory severance pay is:
Below 10 years — 25% of the monthly salary for each year of service
Above 10 years — 33.33% of the monthly salary for each year of service
For stays exceeding 90 days in France, obtaining a Long-Term Visa is a mandatory requirement. To apply for a long-term visa, individuals need to provide supporting documents related to their stay. It is important to note that long-term visas are generally available to most nationalities, with the exception of EEA and EU nationals.
Based on individual requirements, a Long-Term visa with a residence permit can be granted. It is necessary to submit personal documents and passports issued within the past 10 years. The French Office for Immigration and Integration may request additional information from the individual as part of the process.
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If you're considering hiring employees or contractors in France or seeking compliant payroll solutions, reach out to us or book a demo at http://niural.com. For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in France!