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Undoubtedly, payroll is a critical process for any organization. Pay cycle in France refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll cycle in France is monthly. While there is no fixed date when salaries must be paid, it is common to pay employees at the end of the month. It is also possible to have a pay date outlined in a collective labor agreement.

The 13th and 14th month payments are not legally required in France, but they are commonly provided to employees by their employers. The 13th month payment is typically paid out in December, and the 14th month payment is typically paid out in June.

As of May 1, 2023, the minimum wage in France has been increased by 2.22%. The minimum hourly gross wage is now €11.52, representing a monthly wage of €1,747.20 on a weekly basis of 35 hours

In France, work done beyond the weekly 35 hours falls under the category of over time work. With an established agreement, overtime pay must be no less than 110% of the regular wages.

If no agreement is in place, overtime pay is 125% of the regular pay for the first 8 hours of overtime and 150% for every hour after.  

Flat-rate Assessment Scales for Specific Employer Benefits in Kind 

Effective from April 6, 2023 

• Flat-rate scales for meal benefits provided to various types of employees for 2022 and 2023.
• Flat-rate scales for housing benefits, based on the monthly social security ceiling and the number of rooms in employer-provided accommodation, for 2022 and 2023.
• The extended application, through Dec. 31, 2024, of the valuation method for employer-provided electric vehicles for purposes of calculating social security contributions.
• The valuation method for employer-provided electric vehicle charging stations for purposes of calculating social security contributions between January 1, 2023, and Dec. 31, 2024.

All documents depend on their type, and it can vary from one year to 30 years. The time frame to store the documents is listed below.• 

• The relevant inspection authorities can ask to see any of the documents within the time limit. Documents related to tax, such as income tax, business taxes, local taxes, VAT, etc., have to be stored for six years. 
• Employees’ contracts and documents concerning their salaries, bonuses, and retirement schemes must be kept for five years. So must all commercial contracts and correspondence, banking including cheque stubs and statements, and transport documents.

Hiring employees in France can be difficult because litigation and collective bargaining agreements are common. The best way to employ and onboard a new worker is through a strong, written employment contract, keeping employee’s pay slips and documents, saves from any kind of legal trouble in future.

There is no proper legislation for onboarding employees in France. After hiring an employee going through employment contract, documents and code of conduct is important. An employer can discuss his expectation and any additional work can be preached to employees. In case of foreign employees, employers would be required to look into their travel and stay till they are customized with office. Onboarding is basically done for comfort of employees and explaining to employees what is expected from them during work.

Documents required while onboarding new hires in France are listed below:

• Identity card or Passport

• CV

• Diploma or qualification certificate (if you have one)

• Signed fixed-term employment contract with a French company

• Confirmation from the French employment authority that the job has been advertised for at least 4 weeks

• An explanation and proof of why your employer can’t fill the role from the French labor market

• Corporate registration certificates (Extrait Kbis) for the French company

• Proof that the French company is paying social security

• Residence permit: Foreign talents who are citizens of a country outside the European Union, the European Economic Area, and Switzerland must apply for a residence permit specific to the position being sought and their profile

Probation periods in France generally differ based on the criteria of employee and their seniority:

• Blue-collar employees must work two months ‘of probation,
• technicians and supervisors receive three months, and
• management receive four months

During the probation period, the employment contract may be freely terminated by the employee or by the employer, without the need to state reasons and without compensation unless otherwise provided for in the agreement.

Working Conditions

Effective as of March 9, 2023, EU directives on transparent and predictable working conditions and on work-life balance:

• All new employees must be given a contract describing the fundamental terms of their employment relationship.
• Obligation to inform the employee under a fixed term or temporary contract about open-ended positions to be filled.
• End of exemptions to the statutory maximum duration of the probationary periods.
• Paternity leave to count as a “period of presence” at work.
• Taking into account paternity leave in the calculation of the employee’s seniority.
• Extension of the benefit of the parental education leave.
• Retention of benefits acquired before paternity, childcare, parental education leave, and parental presence leave.

Payslips

Effective from July 1, 2023, employers will have to include the “Montant Net Social” amount in Pay slips. This is to make it easier for employees with lower incomes to avail themselves of benefits.

There is a total of 11 public holidays in France however in the Alsace region or the Moselle region there’s additional 2 days.

• Jan 1: New Year
• Apr 9: Easter Sunday
• Apr 10: Easter Monday
• May 1: Labor Day
• May 8: Victory in Europe Day
• May 18: Ascension Day
• May 29: Whit Monday
• Jul 14: Bastille Day
• Aug 15: Assumption of Mary
• Nov 1: All Saints Day
• Nov 11: Armistice Day
• Dec 25: Christmas Day

The remaining holidays differ from state to state.

Sickness reimbursements are made by the Social Security office to all employees from the fourth day of absence due to sickness.

Additional compensation from the employer is common and is detailed within the collective/company agreements, with at least three months’ service, all monthly paid employees are entitled to continued payment in proportion to their regular salary for up to 90 days.

Expectant mothers are entitled to up to 16 weeks of maternity leave, six weeks before birth and ten weeks after birth. Maternity leave can be extended to 26 weeks when expecting a third child, extending further to 34 weeks for multiple births (twins) and 46 weeks when expecting triplets or more.

The maternity leave can be extended even further should the expectant mother be unwell, with an additional two weeks before the birth and four weeks after.

Maternity pay is made by the Social Security to entitled employees. To be entitled, the employee must have been affiliated with the Social Security for a minimum of 10 months before the due date, have taken at least eight weeks maternity leave, and have worked at least 150 hours in the 90 days preceding the leave.

The amount paid each day is based on the average salary received three months before the leave and paid every two weeks.

Paternity Leave entitlement is 28 days, where at least 1 week is mandatory. This leave also covers same-sex (female and male) couples. Employers are responsible for paying 3 days of the leave, while social security covers the rest.

As of April 17, 2023, employees who voluntarily abandon their position and do not return to work within the time limit set by their employer may now be presumed to have resigned.

There are several different ways that an employment contract can be ended. In addition to redundancy or resignation, in France, there is an option to negotiate departure through mutual agreement. All these ways require specific procedures that the employer must follow.

Regardless of the type of job contract, when it comes to ending employment, the employer has to provide a certificate stating the position held, a document for the pole emploi, which is a governmental agency that registers unemployed people, helps them find jobs and provides them with financial aid. Allowing the person to claim unemployment benefits, and a document stating everything the employer needs to pay the employee. During the probation period, employment can be terminated by either the employer or the employee with five days of notice.

Notice periods within France are as follows:

• 1 month’s notice is required for employees leaving within the first six months and two years of service.
• 2 months’ notice is required for employees leaving after completing two years’ service employment.
• 3 months’ notice is required for executives

Employment Updates

• The collection of AGIRC-ARRCO (supplemental pension) contributions by URSSAF has been postponed until January 1, 2024.
• The bonus-malus of unemployment insurance contribution application has been extended until August 31, 2024.
• Unemployment insurance bonus-malus extended until August 31, 2024. The collection of AGIRC-ARRCO (Supplemental Pension) contributions by URSSAF has been postponed until January 1, 2024.

The employer must pay the dismissed employee the minimum legal severance pay, provided that the employee has been employed for a minimum of one year by the company for dismissals notified before 23 September 2017 and eight months for dismissals notified since 24 September 2017. This severance pay is paid whether the grounds for dismissal are personal or economic. For dismissals notified before 26 September 2017, the severance pay was equal to one-fifth of a month’s salary for each year of service, increased by 2/15 of a month’s pay per year of service after ten years (i.e., one-third of a month’s pay per year of service after ten years). For dismissals notified since 27 September 2017, the severance pay is equal to one-quarter of a month’s salary per year of service for each year of service up to 10 years and one-third of a month’s salary per year of service for each year of service after ten years.

Termination of Fixed term contract(CSD) Termination pay is equal to at least 10% of the total gross remuneration paid during the contract. However, this percentage may be limited to 6% by collective agreement. In this case, compensation must be offered to the employee, in particular in the form of privileged access to vocational training (training action, skills assessment).

If the employee is from the EU/EEA or Switzerland, they do not need a work permit.

In France, there are two main types of visas, a short stay which is required for visits of 90 days or less where the employer applies to the French Ministry of Labor, and the authorization then goes to the French embassy.

A long stay work visa is also a residence permit. The work contract is sent to the local division of the French Ministry of Labour for approval. Once approved, it is sent to the Office Francais de l’Immigration et de l’Integration (OFII) for secondary approval.

Once this is approved, the contract confirmation is sent directly to the French embassy in the employee’s home country. After 18 months in a long-stay residence permit, applications can bring family members to France.

In addition, applications for a four-year renewable visa can be made for a passport talent which is aimed at executives, independent professionals, or employee-level people who have the potential to make a significant contribution to the French economy, especially in intellectual, scientific, cultural, sporting, or humanitarian fields.

Background checks in France are limited to the strictly necessary verifications of a candidate’s qualifications, experiences, and references.

Criminal background checks are limited to certain professions that entail security responsibilities or that involves working with children or sensitive information or materials.

Credit background checks do not exist in France.