Expanding your business into France is an exciting opportunity. But to make it a success, you’ve got to understand the local hiring landscape.

France is the world’s seventh-largest economy and the second-largest in the European Union, making it an attractive destination for international business. France has a highly skilled workforce and well-developed infrastructure, and is home to many global industries, particularly in the energy, technology and automotive sectors.

As such, it is an exciting place to do business, but dealing with French employment laws, hiring processes, and cultural differences can be complex. This guide will provide you with key information you need to know about hiring employees in France, such as employment regulations, contract types, visa requirements, cost consideration and more.

Let us help you simplify the process and make your expansion into the French market a success.

Three ways to hire in France

When hiring employees in France, businesses have several options depending on their goals, timeline, and resources. Here are three primary ways to hire in France.

1. Setting Up a Legal Entity

Establishing a legal entity in France is the traditional and most common method for hiring employees. The process is straightforward, you need to register your business with the French authorities, obtain the necessary permits, and ensure compliance with French labor laws. This includes payroll taxes, social security contributions, and health benefits.

While this option provides complete control over your workforce and business operations, it also comes with administrative and financial costs. Setting up an entity requires considerable time and resources, including navigating French regulations, understanding labor laws, and establishing systems for employee benefits and payroll.

Key Considerations:

• Long setup time and substantial costs.

• Full control over operations, but also full responsibility for compliance.

• Ongoing administrative work related to payroll, benefits, and taxation.

2. Using an Employer of Record (EOR)

An Employer of Record (EOR) is an efficient solution for businesses looking to hire employees in France without establishing a local entity. The EOR acts as the official employer while you manage day-to-day operations and work assignments.

This is where WTS Energy can help you.

Our EOR services in France helps with:

• Payroll management to ensure accuracy and compliance with French regulations.

• Employee benefits administration, including health insurance, retirement plans, and paid leave, in line with local requirements.

• Full legal compliance with French labor laws.

• A seamless, risk-free hiring solution.

3. Hiring Independent Contractors

Hiring independent contractors is a flexible and cost-effective option, particularly for short-term projects, specialized roles, or temporary needs. Contractors work on a project basis and are responsible for their own taxes, insurance, and benefits.

Key Considerations:

• Flexibility and cost savings for short-term or specialized roles.

• No need to provide employee benefits or protections.

• Risk of misclassification, leading to legal and financial consequences if not properly handled.

• It can be difficult to retain independent contractors on a long-term basis.

What to know before hiring in France

Expanding your team into France requires a deep understanding of the country’s employment laws, immigration procedures, and cultural considerations. To ensure a smooth and compliant hiring process, you should know who is eligible to work in France, the mandates of employment laws, and the types of contracts available to employers.

Who can work in France without a work permit?

In general, foreign nationals must obtain a valid work permit to be employed in France. However, exceptions include:

• European Economic Area (EEA) and Swiss Nationals: Citizens from EEA countries and Switzerland can work in France without a separate work permit.

• Monaco, Andorra, and San Marino Nationals: Individuals from these countries are also exempt from obtaining a work permit for employment in France.

For all other foreign nationals, employers are responsible for securing the necessary work authorization before the employee begins work.

Employment Laws and Regulations

France has comprehensive labor laws designed to protect both employers and employees. Key regulations include:

• Working Hours: The standard workweek is 35 hours. Overtime is regulated and must be compensated accordingly.

• Leave Entitlements: Employees in France are entitled to a minimum of five weeks of paid annual leave per year. In cases of illness, employees may be eligible for daily allowances from the French Social Security system, provided certain conditions are met. Maternity leave entitles mothers to 16 weeks of paid leave, while fathers are granted 25 days of paternity leave.

• Probation Periods: The duration varies by contract type and employee category but typically ranges from one to four months for permanent contracts.

• Termination and Notice Periods: Notice periods in France depend on the employee’s status, length of service, and the terms outlined in the employment contract or applicable collective agreements. Typically, it is 1 month for employees after one year of service, 2 months for supervisors or technicians, and 3 months for managerial or executive staff.

• End-of-Service Benefits: Employees dismissed under certain conditions may be entitled to severance pay, depending on their length of service and the terms of their contract.

Types of Employment Contracts in France

French labor law recognizes several types of employment contracts:

• Permanent Employment Contract (CDI): This is the standard form of employment contract with no predetermined end date. It must be provided in writing and include essential terms of employment.

• Fixed-Term Employment Contract (CDD): Used for temporary positions, this contract has a specified duration and can only be renewed under strict conditions. The total duration, including renewals, generally cannot exceed 18 months.

• Temporary Employment Contract: Typically used for short-term assignments, often facilitated through a temporary work agency.

• Apprenticeship and Professionalization Contracts: Aimed at combining work and training, these contracts are used for vocational education and skill development.

• Internship Agreements: For students seeking professional experience as part of their studies. Internships are strictly regulated, including the requirement of a formal agreement between the employer, the intern, and their educational institution.

What your company needs to hire foreign employees in France

Hiring foreign employees in France can open doors to international talent, but it also comes with strict legal and administrative requirements. Before anything else, your company must have a legal presence in France. This can be done in two ways:

• Register a legal entity in France and handle all employment obligations directly.

• Partner with an Employer of Record (EOR) like WTS Energy to hire foreign employees without setting up a local entity.

Once you’re set up to hire, here are the essential steps to bring in foreign talent.

Determine Work Permit Requirements

If the candidate is not a citizen of the EU/EEA, Switzerland, Monaco, Andorra, or San Marino, you’ll need to apply for a work permit. Employers must typically advertise the role locally first to ensure no available workers in France or the EU can fill the position.

Become a Recognized Sponsor

For certain long-term or specialized positions, becoming a recognized sponsor can streamline future hiring. It demonstrates your commitment to compliance and improves trust with authorities.

Apply for the Appropriate Visa

Once the work permit is approved, your future employee must apply for the correct work visa (typically at a French embassy or consulate). They’ll need to gather documents such as the job contract, proof of qualifications, and a valid passport.

Handle Employee Registration and Taxes

After arrival in France, employees must validate their visa, complete medical checks, and register with the social security system. As the employer, you must register them with the appropriate tax and social bodies and handle monthly contributions.

Ensure Compliance and Smooth Onboarding

Employment in France is governed by strict labor laws, including minimum wage (SMIC), working hours, social contributions, and mandatory benefits. Having clear contracts and a structured onboarding process is key to a smooth start for your international hires.

Not sure where to start or how to manage compliance

With complex visa rules, licensing requirements, and compliance checks, the process can feel overwhelming. That’s where WTS Energy’s Employer of Record (EOR) or Recruitment and Headhunting services makes a difference.

We handle the legal, administrative, and onboarding steps, so you can focus on growing your team.

Direct Hiring vs Employer of Record (EOR): Which is Right for you? 

When entering the French market, companies face a key decision: establish a local entity to hire employees directly, or work with an Employer of Record (EOR) to simplify the process. Each route offers distinct benefits, and the best approach depends on your business objectives, internal capabilities, and desire for regulatory accountability.

Which Option is Right for You? 

• Long-term expansion & full control? → Set up a French entity 

• Fast, compliant hiring with no local entity? → Use an EOR like WTS Energy 

• Need flexibility & project-based work? → Hire French contractors carefully 

How much does it really cost to hire an employee in France?

The cost of hiring an employee in France is, on average, roughly 45% of an employee’s base salary due to mandatory employer contributions to social security in France.

In addition to social security contributions, employers must also contribute 6.26% or 14.82% of their employee’s monthly earnings to a supplementary pension called Agirc-Arcco based on their employee’s income.

Still, total employee cost in France varies widely based on additional factors like the number of employees hired, entity type, and applicable collective bargaining agreements (CBAs).

The cost of hiring an employee in France averages approximately 40%-60% of the employee’s base salary due to mandatory employer social security contributions. In addition to these contributions, employers must also consider the cost of pensions, health insurance and other mandatory benefits.

Some of the key cost components include:

• Social security contributions: typically around 45% of the employee’s base salary, covering healthcare, retirement, and unemployment benefits.

• Agirc-Arcco pension contributions:  6.26% to 14.82% of the employee’s monthly earnings, based on their income

• Unemployment insurance: required employer contributions.

• Additional local taxes and fees: may vary depending on the region or sector.

Businesses expanding into France should also plan for other costs such as:

• Legal or HR expert fees.

• Establishing a legal entity (if applicable).

• Ensuring compliance with local labor laws and collective bargaining agreements (CBAs).

• Recruitment and onboarding expenses, such as advertising job vacancies and conducting background checks.

Compliance risks when hiring in France

Hiring in France requires careful attention to labor laws, collective agreements, social security obligations, and employee rights. Non-compliance can lead to fines, legal disputes, and reputational damage.

Below are key compliance risks employers should be aware of when hiring in France:

Misclassification of Employment Contracts

France recognizes several types of employment contracts, and each comes with specific rules. Misclassifying a fixed-term role as a freelance agreement or using temporary contracts outside of legal limits can result in penalties and claims for permanent employment status, along with backdated benefits.

Violation of Working Time Regulations

The legal workweek in France is 35 hours. Exceeding this limit without proper compensation or contractual agreements can breach labor laws. Overtime is to be documented and paid according to legal or collectively bargained rates.

Non-Compliance with Collective Bargaining Agreements (CBAs)

Collective bargaining agreements (conventions collectives) govern most sectors in France and often impose stricter rules than the general labor code. Employers must identify and apply the correct agreement, covering everything from wages to working conditions and termination procedures.

Improper Termination Procedures

France has highly regulated dismissal processes, particularly for permanent employees. Terminating a contract without following the proper notice periods, documentation, and justification can lead to wrongful dismissal claims and legal proceedings at the Labour Court (Conseil de Prud’hommes).

Data Protection and Privacy Breaches

Employers must comply with GDPR regulations when handling employee data. This includes securing consent, ensuring transparency in data use, and safeguarding personal records. Breaches can result in significant fines from data protection authorities.

Streamline your France hiring with WTS Energy’s recruitment and talent solutions

Hiring in France means navigating complex labor laws, collective bargaining agreements, social security contributions, and strict compliance standards. At WTS Energy, we simplify the process, connecting you with the right talent while managing every step of recruitment and onboarding for you.

• Full compliance with French labor regulations and collective agreements

• Access to top-tier local and international professionals

• Complete recruitment support (from sourcing and interviews to onboarding)

• We take care of contracts, payroll setup, work permits, and social contributions

Frequently asked questions

*The content provided is for general informational purposes only and is based on publicly available sources deemed trustworthy at the time of writing. However, we do not guarantee its accuracy, completeness, or ongoing relevance. For the most up-to-date guidance or advice tailored to your specific situation, please reach out to our team directly*