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How to hire employees in France (2026)

James Kelly

Author

James Kelly

Last Updated

13 April 2026

Read Time

11 min

Hiring employees in France gives you access to one of Europe’s strongest talent markets, with particular depth in engineering, technology, pharmaceuticals, and professional services. France also has some of the most detailed employment regulations in the EU, and getting things wrong carries real consequences.

This guide covers the practical steps, from choosing your employment structure to understanding contracts, employer costs, and the obligations French labour law imposes from the first day of employment.

For companies that want to hire in France without setting up a local entity, an Employer of Record can handle the legal and compliance infrastructure. See our complete guide to Employer of Record in France for a detailed explanation of how that works.

Before you hire, you need to decide how you will employ people. There are three main routes.

Set up your own entity

You can register a French company, typically a Société par Actions Simplifiée (SAS) or SASU. This gives you full control over employment, contracts, and the applicable collective bargaining agreement. The process involves registration with the Greffe du Tribunal de Commerce, obtaining a SIRET number, registering with URSSAF as an employer, opening a French bank account, and establishing payroll infrastructure. Expect the full process to take three to six months and cost €15,000-€40,000 before you employ anyone.

This route makes sense when you are building a large, permanent team in France. For smaller teams or market testing, the cost and complexity are hard to justify.

Use an Employer of Record

An Employer of Record legally employs workers on your behalf through a compliant French employment structure. You retain full control over the employee’s day-to-day work. The EOR handles contracts, payroll, social security contributions, benefits, and compliance.

In France, most EOR providers operate through portage salarial, a regulated employment framework that provides workers with full statutory rights. Portage salarial arrangements are capped at 36 months. Some providers use their own French entity instead, which avoids this time limit.

This is the fastest route to hiring in France. Most providers can onboard an employee within one to two weeks. For a comparison of providers, see our guide to the best Employer of Record providers in France.

Engage independent contractors

You can work with self-employed professionals (auto-entrepreneurs or freelancers operating through portage salarial). This is appropriate for genuinely independent, project-based work. It is not appropriate for people who work exclusively for your company, follow your schedule, and report into your management structure. France takes misclassification seriously, and reclassification by the authorities means back-payment of social contributions, penalties, and potential criminal liability.

French employment law defaults to open-ended employment. Every hiring decision starts with the question of contract type.

CDI (Contrat à Durée Indéterminée)

The CDI is France’s standard employment contract and the legal default. It has no fixed end date. It can only be terminated through resignation, mutual agreement (rupture conventionnelle), dismissal for cause, or economic redundancy. Each of these termination routes has specific procedural requirements.

If you are hiring someone for an ongoing role, a CDI is almost always the correct contract type.

CDD (Contrat à Durée Déterminée)

The CDD is a fixed-term contract that can only be used in specific, legally defined circumstances. These include replacing an absent employee, a temporary increase in business activity, seasonal work, and certain other situations listed in the Code du Travail. You cannot use a CDD simply because you want a trial period or flexibility.

CDD contracts have strict rules on maximum duration (generally 18 months, including renewals), the number of permitted renewals (two), and mandatory waiting periods between successive CDD contracts for the same position. A CDD that does not meet the legal requirements will be reclassified as a CDI by a labour court.

What the contract must contain

All French employment contracts must be in writing and in French. They must include the job title, description of duties, salary, working hours, the applicable collective bargaining agreement, probationary period (if any), notice periods, and the workplace location. For CDD contracts, the specific legal grounds justifying the fixed-term arrangement must be stated.

The total cost of employing someone in France goes well beyond the gross salary.

Social security contributions

Employer social contributions total approximately 42-45% of gross salary. These cover health and maternity insurance, old-age pension, supplementary pension (AGIRC-ARRCO), unemployment insurance, family allowances, workplace accident insurance, and several smaller levies. The exact rate varies by salary level, company size, and collective bargaining agreement.

The monthly social security ceiling (PMSS) for 2026 is €4,005. Some contributions are capped at this ceiling, while others apply to the full salary.

Mandatory benefits

On top of social contributions, employers must provide mutuelle health insurance (covering at least 50% of the premium), reimburse 50% of the employee’s public transport pass, and comply with any additional requirements from the applicable collective bargaining agreement. Some agreements require meal vouchers (titres-restaurant), 13th-month salary, or enhanced leave entitlements.

Minimum wage

The SMIC increased to €12.02 per hour gross on 1 January 2026, equating to €1,823.03 per month for a standard 35-hour workweek. Many collective bargaining agreements set minimum salaries above the SMIC for specific roles and experience levels.

What this adds up to

For an employee on a gross annual salary of €60,000, total employer costs typically reach €87,000-€90,000 once you add social contributions, mutuelle, and other mandatory costs. Use the Boundless employment cost calculator to model the full cost at any salary level before making an offer.

The 35-hour workweek

France’s legal working week is 35 hours. Hours beyond 35 are overtime, compensated at 125% for hours 36-43 and 150% beyond that. Many companies negotiate different arrangements through collective bargaining agreements, including annualised working time or RTT (Réduction du Temps de Travail) days that give employees additional time off in exchange for slightly longer standard weeks.

Annual leave

Employees are entitled to 25 working days (five weeks) of paid annual leave per year, plus 11 public holidays (13 in Alsace-Moselle). Many collective bargaining agreements provide additional leave beyond this statutory minimum.

Parental leave

Maternity leave in France is 16 weeks (six before the due date, ten after) for the first two children, extending to 26 weeks from the third child. Paternity leave is 25 calendar days plus the three-day birth leave. The LFSS 2026 introduced a new birth leave of one or two months per parent, available from 1 July 2026 for children born or adopted from 1 January 2026. This is taken after existing maternity or paternity leave is exhausted.

Sick leave

Employees on sick leave receive daily allowances from the Sécurité Sociale after a three-day waiting period, typically covering 50% of their daily salary up to a ceiling. Many collective bargaining agreements require the employer to top up sick pay to a higher level, sometimes maintaining full salary for a specified period depending on length of service.

Additional benefits

French employees expect a well-rounded benefits package. Common additional benefits include meal vouchers (titres-restaurant, typically split 50-60% employer and 40-50% employee), supplementary health insurance beyond the mandatory mutuelle, and profit-sharing schemes. Companies with 50 or more employees must establish a works council (Comité Social et Économique, or CSE) and may be required to implement profit-sharing (participation) or voluntary profit-sharing (intéressement). For a detailed breakdown, see our guide to employee benefits in France.

France has over 700 conventions collectives that cover virtually every sector. These agreements sit on top of the Code du Travail and can set higher minimum salaries, additional leave, longer notice periods, specific classification systems for roles and seniority, and enhanced benefits. The applicable agreement is determined by the employer’s primary business activity (code APE/NAF), not by the employee’s job title.

Understanding which collective bargaining agreement applies is not optional. It affects what you must pay, what benefits you must provide, and what procedures you must follow for termination.

Under portage salarial (the model used by most EOR providers in France), the portage salarial collective bargaining agreement applies rather than a sector-specific agreement. This is an important distinction for companies using an EOR. For more detail on how this works, see our guide to portage salarial in France.

Before you start

Confirm your employment structure (entity, EOR, or contractor). If using an EOR, select your provider. If setting up an entity, complete registration with the Greffe, URSSAF, and your bank before attempting to hire.

Make an offer

Agree on salary, role, start date, and benefits. Factor in the full employer cost (gross salary plus 42-45% social contributions plus mandatory benefits) when setting the budget. A good EOR or payroll advisor will help you model the total cost before you commit.

Draft the employment contract

Prepare a compliant French-language contract that includes all mandatory clauses. If you are using an EOR, the provider drafts the contract. If you have your own entity, work with a French employment lawyer or HR specialist to ensure compliance.

Complete pre-employment formalities

Before the employee starts, file the Déclaration Préalable à l’Embauche (DPAE) with URSSAF. This is a mandatory pre-employment declaration that must be submitted no earlier than eight days and no later than the day before the start date. Register the employee for social security and enrol them in mutuelle health insurance.

Onboard the employee

Set up payroll, provide the signed contract, and complete any administrative requirements. On the relationship side, introduce them to the team, arrange equipment, and cover your internal onboarding process. If the employee is a non-EU national, ensure their work authorisation is in place before they start.

Ongoing obligations

Each month, process payroll including income tax withholding (prélèvement à la source), employer and employee social contributions, and DSN filing with URSSAF. Issue a compliant French pay slip. Track working time, manage leave entitlements, and stay current with legislative changes. For a full overview of French payroll mechanics, see our guide to payroll in France.

Hiring in France with Boundless

For companies that want to hire employees in France without the cost and time of setting up a local entity, Boundless handles the full employment infrastructure.

Boundless operates in France through portage salarial, providing every employee with full statutory employment rights under French law. You keep control of the day-to-day work. Boundless handles contracts, payroll, social contributions, mutuelle, and compliance with the Code du Travail.

Every customer gets a dedicated account manager with genuine knowledge of French employment law. When you need to understand how a collective bargaining agreement affects your employee, or how to budget for the full employer cost at a given salary, you are talking to someone who knows the answer.

Pricing is €175 ($199) per employee per month, with full visibility into employer costs. No hidden charges.

Talk to our team about hiring in France, or see a full breakdown of French employer costs in our France country guide.

FAQs

Through an EOR, most employees can be onboarded within one to two weeks. Setting up your own entity first takes three to six months for company registration, URSSAF registration, bank account setup, and payroll infrastructure. The entity route delays your first hire considerably.

Beyond gross salary, employer social contributions add approximately 42-45%. You must also cover mandatory mutuelle health insurance (at least 50% of the premium), transport allowance (50% of public transport pass), and any collective bargaining agreement obligations. Total employer cost for a €60,000 salary is approximately €87,000-€90,000.

The CDI (open-ended contract) is the default and correct choice for most ongoing roles. CDD (fixed-term) contracts can only be used in legally defined circumstances and have strict duration and renewal limits. Using a CDD without valid legal grounds risks reclassification as a CDI by a French labour court.

Employment contracts must be in French. Communications with French labour authorities and URSSAF are in French. If you are using an EOR, the provider handles all French-language compliance documentation. Your day-to-day working relationship with the employee can be in any language you agree on.

Portage salarial is the regulated employment framework most EOR providers use in France. It provides employees with full statutory rights but caps the arrangement at 36 months. The portage salarial collective bargaining agreement applies rather than a sector-specific agreement. For more detail, see our guide to portage salarial.

Yes, for genuinely independent, project-based work. If the person works exclusively for you, follows your schedule, and reports into your management structure, French authorities will likely reclassify them as an employee. Reclassification triggers back-payment of social contributions, penalties, and potential criminal liability. When in doubt, employ them properly.

Non-compliance with French employment law can result in fines, back-payment of social contributions and taxes, reclassification of contractor relationships, and labour court claims for unfair dismissal or breach of contract. France has specialised labour courts (Conseils de Prud’hommes) and active enforcement by labour inspectors.

The applicable convention collective is determined by the employer’s primary business activity, not the employee’s role. If you use an EOR that operates through portage salarial, the portage salarial CBA applies. If you have your own entity, the sector-specific CBA for your registered activity applies.

Yes. Employers must provide mutuelle (complementary health insurance) and cover at least 50% of the premium. This is a minimum requirement under the ANI (Accord National Interprofessionnel). Many collective bargaining agreements specify higher employer contribution rates or specific coverage levels.

France has strong employee protections. Dismissal requires valid legal grounds and specific procedures, including a pre-termination meeting and formal notification. Most negotiated departures use rupture conventionnelle, requiring both parties’ consent and labour inspectorate approval. The LFSS 2026 increased the employer contribution on these payments from 30% to 40%.

The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.

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