A French employer of record (EOR) is a company that acts as the official employer for a worker, even if the worker may be working for another company. The EOR basically plays the role of the middleman in this situation. It is also known under the name of “employee leasing” or PEO (“professional employer organization”)
The EOR takes on all the administrative responsibilities and even deals with the recruitment and payroll process.
An Employer of record is usually needed when a company wants to hire a worker but doesn’t want to deal with the administrative and legal responsibilities of being an employer.
What are the advantages of employing through an Employer of Record in France?
- There is no need for hiring a HR team for the recruitment and payroll process or the overloading of an existing Administrative department
- The selection and recruitment process can also be taken care of by the EOR
- Handling payslips, payrolls, health insurance, sick leaves, paid leaves, contracts and compensation are no longer the responsibility of the company that hired the EOR
- It is easier to hire someone in a foreign country for a short term or a temporary /seasonal job positions
- The chance of hiring more qualified people due to the fact that EORs already have a database of resumes at their disposal
- It can be a cost saving option for those who want to spend less money on the administrative side, but still want good results
- It can also be time saving because the client company does not have to deal with recruitment and local legislation and regulations.
We can also help you if you need to open this type of company in another country, such as Turkey, where the time frame for incorporation is up to 3-8 days compared to France where it takes 2 weeks.
Steps to become a Employer of record in France
The general steps of becoming a France employer of Record are:
- Register your company: To become an EOR in France register your company with the French Trade and Companies Register (Registre du Commerce et des Sociétés)
- Get a SIRET number
- Obtain a VAT number: apply for a VAT number at French Tax Authority (Direction Générale des Finances Publiques)
- Obtain a business license (licence d’entreprise). If you need assistance with the legal part of the process, it is advisable to contact an experienced law firm in France.
- Obtain a social security number (numéro de sécurité sociale)
- Register with the French social security system (Caisse Primaire d’Assurance Maladie (CPAM)
- Register with the French labor office (Pôle Emploi)
- Obtain insurance (assurance responsabilité civile/ assurance accidents du travail)
- Recruit your employees
It is important to note that this is just a general overview of the process. If you need navigating the legal process and filling in all the documents, it is recommended that you seek professional advice from our attorneys in France. We can also help you if you want to open this type of company in Azerbaijan, through our local partners.
The responsibilities of a EOR in France
The following duties apply:
- Being up to date with all the workforce regulations
- Making sure that all the local regulations are taking into consideration
- Screening and Recruitment process
- Drafting and signing of the employment contracts
- Providing health benefits
- Issuing payslips
- Processing payroll
- Distributing the salaries and the compensations
- Handling unemployment
- Terminating contracts
- Dealing with all the employment taxes
The services offered by a Employer in France are usually the best choice for start-ups that do not have the necessary resources or enough Human Resources Staff members to hire workers directly.
It is important to note that EORs are not suitable for everyone. So if you have doubts related to this, do not hesitate to contact one of our specialists from our experienced law firm in France.