If you are considering hiring in France, it is crucial to understand the social obligations and labor laws that apply.
The French system is known for being strict and highly regulated, which can be a challenge for international companies unfamiliar with
these processes. To ensure compliance and avoid mistakes, it is essential to be well-informed about the steps involved in hiring staff
and meeting your legal obligations as an employer. Hexagone Advisory can assist you in this process by providing tailored advice and support.

Recruitment and Employment Contracts: Strict Rules to Follow

The hiring process in France is governed by specific rules, whether for fixed-term contracts (CDD) or open-ended contracts (CDI). Employment
contracts must meet legal requirements, particularly regarding drafting, probationary periods, termination conditions, and remuneration.

Open-Ended Contracts (CDI)

The CDI is the standard employment contract in France and is generally considered the most stable form of employment. A CDI has no time limit
and offers enhanced social protection to employees. When drafting a CDI, it is important to include the following:

  • Job description and employee responsibilities
  • Gross salary and benefits (e.g., bonuses, health insurance, etc.)
  • Working hours and weekly schedule
  • Probationary period, if applicable, which can last up to 4 months depending on the role
  • Contract termination conditions (notice period, etc.)

Fixed-Term Contracts (CDD)

The CDD, on the other hand, is used for temporary or seasonal positions, or to replace an absent employee. Unlike the CDI, it has a set
end date, and its use is strictly regulated by law. It is important to know that the total duration of a CDD, including renewals, cannot
generally exceed 18 months. It must be justified by a specific reason, such as:

  • A temporary increase in activity
  • Replacing an employee on leave
  • A seasonal job

If a CDD is not renewed within the legal framework, it may be reclassified as a CDI by the courts, resulting in additional
obligations for the employer. Hexagone Advisory can help you draft compliant contracts to avoid such pitfalls.

Pre-Employment Declaration (DPAE)

Before your employee starts working, you must complete a Pre-Employment Declaration (DPAE) with URSSAF, the body responsible for
collecting social contributions. This declaration is mandatory and must be submitted within 8 days before the start of employment.
It serves to:

  • Formalize the hire with the administration
  • Register your employee with Social Security
  • Enroll your employee for retirement and unemployment contributions

Failure to submit this declaration on time may result in penalties, including administrative fines.

Social Contributions: A Significant Employer Responsibility

In France, social contributions represent a substantial part of labor costs. These contributions fund the social protection system,
including Social Security, pensions, family allowances, and unemployment benefits. As an employer, you are responsible for paying these
charges, which are deducted from your employees’ gross salaries.

Components of Social Contributions

  • Employer contributions: Borne by the employer and can account for up to 45% of the gross salary. They cover:

    • Social Security (health, maternity, disability, death)
    • Basic and supplementary pension contributions
    • Unemployment insurance
    • Family allowances
    • Professional training contributions
    • Solidarity fund for disabled workers
  • Employee contributions: Deducted directly from the employee’s gross salary, representing about 22% of the gross salary.

Managing and Paying Contributions

Each month, it is necessary to prepare a payroll statement in compliance with French legislation, detailing the contributions and
dues for each employee. At the end of each period, these contributions must be declared and paid on time to the relevant organizations.

Hexagone Advisory: Your Partner for HR Compliance

Hexagone Advisory supports you every step of the way to manage your hires in France with ease and compliance with
legal obligations. We take care of:

  • Drafting employment contracts compliant with French labor laws
  • Completing the Pre-Employment Declaration (DPAE) and related administrative formalities
  • Managing and declaring social contributions to relevant organizations
  • Optimizing social charges through tailored aid mechanisms

By partnering with Hexagone Advisory, you benefit from tailored support to focus on building your team and growing your business
in France.

Contact us