What is Portage Salarial?
Portage Salarial is a distinctive tripartite employment arrangement found in France. It offers a unique combination of the flexibility associated with freelancing and the security typically found in traditional employment. This system is particularly well-suited for companies based outside of France that wish to engage French resident workers, providing a compliant structure for such arrangements.
Central to Portage Salarial is the "Portage Salarial Company," which acts as an intermediary, connecting independent consultants with client companies. While the consultant provides services to the client company on a contractual basis, they are technically employed by the portage salarial company. This arrangement ensures the consultant's access to social security benefits and other protections while also allowing them the freedom to operate independently. It involves three key participants: the independent professional offering their expertise (the salarié porté), the portage salarial company, which acts as the employer and handles administrative tasks, and the client company that requires the consultant's services. Notably, an Employer of Record can assume the role of the portage company in this setup.
A closer look at the mechanics of Portage Salarial
The operational framework of Portage Salarial can be further understood by examining its key components:
The arrangement involves two separate agreements: an employment contract between the worker (salarié porté) and the portage company (which could be an Employer of Record), and a commercial agreement between the portage company and the business benefiting from the worker's services.
The financial flow is as follows: The client company pays the portage salarial company for the services provided by the consultant. The portage salarial company then deducts its service fees and the required social security contributions. Finally, the remaining amount is paid to the consultant as a salary.
The portage salarial company takes on a significant administrative load. This includes managing payroll, calculating and distributing salaries, handling social security contributions, and issuing payslips. It also encompasses invoicing and payment collection, drafting and managing the two agreements mentioned above, ensuring compliance with French labour laws, and often providing professional indemnity insurance for the consultant.
The advantages of portage salarial
Portage Salarial offers a range of benefits for all parties involved and affords full statutory employment rights to the worker.
For consultants (salariés portés), it provides access to the French social security system, including unemployment benefits, healthcare, and pension contributions. They also benefit from paid time off, access to unemployment benefits, workload revision meetings, the right to disconnect, various forms of paid leave, and a host of other protections. Administrative tasks are taken care of, allowing consultants to focus on their core work. Being associated with a reputable portage company can enhance their professional standing, and their accounting obligations are simplified. Taxation is aligned with regular full-time employment in France, and the portage company makes social security, health insurance, and compulsory pension contributions on the worker's behalf.
Client companies gain access to a pool of highly skilled professionals without the complexities and commitments of direct employment. They can adjust their workforce size based on project needs and avoid the administrative burdens of hiring and managing employees. The portage company assumes employer responsibilities and liabilities, thus mitigating risks. Invoicing and payments are also streamlined, as the client deals with a single entity.
For global employers, particularly when using an Employer of Record (EOR), Portage Salarial provides a compliant method for engaging independent contractors in France, adhering to local regulations and simplifying the management of a geographically distributed workforce. It also mitigates legal risks related to employee misclassification and provides access to a wider array of French talent, including those who prefer the autonomy that Portage Salarial offers.
Termination of employment under Portage Salarial
All standard end-of-employment rules apply when working under Portage Salarial, including the mutually agreed termination (rupture conventionnelle), 1 which gives the worker access to unemployment benefits. This typically requires a 45-day notice period.
The role of an Employer of Record (EOR) in Portage Salarial
An Employer of Record can provide valuable assistance to global companies navigating the intricacies of Portage Salarial. An EOR can manage the employment of those working under a portage arrangement for a foreign company, acting as the portage company in the tripartite arrangement.
An EOR can also collaborate with a reputable portage company in France to engage consultants on your behalf. This ensures adherence to regulations, simplifies workforce administration, and creates a seamless experience for both your organisation and the consultant.
New classifications for ported employees (Salariés Portés)
A new four-level classification system for ported employees (salariés portés) is now in effect (since July 2024). This system impacts minimum wages and eligibility for certain working time arrangements.
Classification levels
- Entry: For employees performing simple services based on direct client negotiations. Employees can’t remain at this level for more than 24 months for the same type of assignment.
- Junior: For employees who take initiative and responsibility in negotiating and carrying out services, including identifying client needs and proposing changes.
- Senior: For employees negotiating complex services requiring high initiative, responsibility, and significant prior experience.
- Expert: For employees negotiating particularly complex services demanding very high levels of initiative, responsibility, and specialised expertise.
Important notes on classification
- These classifications serve as guidelines.
- Employees may perform work at different levels for various clients.
- Discrepancies between the initial service level and the actual work performed do not automatically alter an employee's classification.
- Changes to an employee's classification require an amendment to their portage employment contract.
Key implications of the new classification
- Minimum wages: Specific minimum wages apply to each classification, as detailed below:
Classification Monthly (Gross €) Entry €2,472.75 Junior €2,747.50 Senior €3,043.75 Expert €3,336.25 - Working time arrangements: Only "Senior" and "Expert" salariés portés are automatically eligible for the "working time in days" arrangement. "Entry Level" and "Junior" employees may be eligible if they hold "Executive" status and demonstrate high autonomy in organising their work.
How Boundless can help
As your Employer of Record in France, Boundless acts as the "portage" company, simplifying the process and ensuring full compliance. We establish and maintain the legal employment relationship with the worker (salarié porté), while they maintain a level of independence in their work with you.
Every month, we calculate payroll, deduct all mandatory contributions, and provide the worker with a payslip and a detailed cost breakdown. This includes the total amount billed to you, our service fees, employer and employee social security contributions, paid holiday reserve, financial reserve for the end of employment, and the net sum the worker will receive. We also file all necessary taxes and pay mandatory contributions to the respective authorities.
This means you can confidently engage top talent in France through the Portage Salarial model, knowing that all legal, administrative, and compliance aspects are expertly managed. We handle the complexities, allowing you to focus on your core business and benefit from the expertise of your French team members.
Contact us today to learn more about how we can support your global expansion goals.