For those unfamiliar with doing business in France, the process of hiring employees is often challenging. A highly regulated employer/employee relationship, with legislation offering favoring the interests of the employee, can make things complicated for a business planning an international expansion.
The Code du Travail is the primary basis for labor law in France, but since the country is part of the European Union, employers are also subject to even more laws and regulations. Additionally, individual employment contracts, collective bargaining agreements and a company’s internal rules of conduct can all impact the hiring of employees for international operations.
If you’re considering expansion to France, here are some key points to consider:
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Employers must heed strict rules regarding employee discipline, termination, health and safety, work hours, holiday and sick pay, continuing
education , discrimination and mandatory profit-sharing. - French law protects unions and mandates the creation of employee representative institutions.
- A system of collective bargaining agreements, which tend to dictate the scope and detail of the employment relationship, is mandatory.
- Employees have the right to become members of unions, and those unions have the right to be represented on a national level in order to negotiate national and local labor agreements with employers. The right to strike is also protected.
- There is no concept of “at will” employment in France. A written service agreement or contract of employment is highly recommended for any employee resident in France, regardless of nationality.
- Most employment contracts are for an open term.
- Medical examinations are required of all new hires.
- All employment-related documentation must be in the French language.
- All non-EU hires must hold valid and current residence and work permits.
- There are civil and criminal penalties for employers in France found to be in violation of anti-discrimination laws.
- In general, employees are always entitled to the application of the most favorable legal provision, whatever its source.
- Working time is highly regulated.
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There is a significant legal distinction between
management level employees and lower grade staff. - France has generous employee rights regarding maternity, paternity, family leave etc.
- Employee terminations are difficult, lengthy and expensive, subject to extensive bureaucratic process.
- It is very easy for an employee to begin legislation against an employer before various labor courts.
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Employee profit-sharing schemes are encouraged through
tax and social security contribution exemptions. - Staff delegates must be elected in any company employing at least 11 employees. The number of staff representatives to be elected depends on the size of the workforce of the company.
- Companies employing at least 20 employees are required to set out specific internal rules of conduct (règlement intérieur) regarding health and safety, discipline, employee rights, prevention of harassment etc. Strict procedures around the implementation and modification of this documentation apply.
- French companies that employ 50 or more employees are required to organize elections to set up a works council. They are also required to set up a joint health and safety committee (CHSCT – Comité d’hygiène, de sécurité et des conditions de travail), and to pay employees an additional profit-related bonus when dividends payments are made to shareholders.
Despite the increased attention required by these legal and