For companies looking to hire talent in France, there’s a lot to navigate when it comes to labor laws, payroll and tax regulations, statutory benefits, and more. France is known for strong employee protections, ranging from right-to-disconnect laws and collective bargaining agreements to notice periods and termination requirements. Navigating such compliance requirements can be daunting for international employers, who sometimes turn to EORs in France to help manage the legal and administrative burden.
One way to simplify hiring talent in France is by using the portage salarial employment model. This is a unique and flexible employment model that makes it easy for companies outside of France to work with French talent while remaining compliant with French employment law and ensuring a good employee experience.
In this article, we’ll explain how the portage salarial model works, and how it’s beneficial for both employers and employees.
What is portage salarial?
Portage salarial is a recognized employment framework in France based on a tripartite relationship between a client company, an independent contractor or consultant (the team member), and a portage company. In this arrangement, the team member is legally hired by the portage company to provide services to the client company.
The portage company takes care of taxes, benefits, and payroll, which reduces the administrative burden on the client company. As for the team members, they’re able to enjoy full employment benefits and protections, such as health insurance and social security.
How does the portage salarial model work?
In the portage salarial model, the team member provides services to the client company while being employed by a portage company. To formalize this arrangement, two contracts are established: (1) an employment agreement between the portage company and the team member, and (2) a commercial agreement between the portage company and the client company. The length of a specific portage salarial assignment with a client company can last up to 36 months.
Throughout the engagement, the portage company invoices the client company on the team member’s behalf and converts the billing into a payslip. The payslip issued to the team member contains all typical aspects of a salaried employee, including social security contributions and wage-tax deductions.
Additionally, the portage company sets aside 10% of the team member’s salary as a “salary reserve” in a separate activity account set up for each team member. These funds will be available during periods when the team member is not actively engaged with a client company, providing financial stability between assignments.
What are the benefits of portage salarial?
From compliance and risk management to flexibility and worker protections, the portage salarial model offers numerous benefits to both companies and team members.
For companies looking for talent in France, portage salarial reduces administrative complexity while ensuring compliance and enabling speed and flexibility.
- Legal compliance and risk mitigation: Since the portage model is a recognized employment framework in France, companies using this model can benefit from the services of talent in France, in compliance with French labor laws.
- Reduced administrative burden: Since the portage company handles all the HR admin, including payroll, tax compliance, and social security contributions, it frees up the client company’s time to focus on their core business activities.
- Speed and flexibility: The portage model makes it fast and compliant for companies to onboard talent—without the time, effort, and expense of establishing a local entity.
- Simplified offboarding process: The portage company manages the entire termination process, ensuring compliance with local regulations.
For team members, the portage model is beneficial because it provides employee protections and benefits while also giving them the flexibility of an independent contractor or consultant.
- Employee benefits and protections: Since this is a legally recognized employment model, portage employees receive full rights and protections under French labor regulations.
- Access to social benefits: Portage employees are entitled to French social security benefits, including health insurance, unemployment benefits, and retirement contributions.
- Flexible employment: The portage model offers team members the flexibility of engaging with clients as an independent contractor while also giving them employment rights and privileges, such as supplemental healthcare coverage and social security benefits.
Start hiring in France with Oyster
If you’re looking to onboard talent in France under the portage salarial model, the good news is that you can do so easily and compliantly with Oyster. Our global employment solution empowers you to expand into new markets while maintaining full compliance with local labor laws. Oyster handles contracts, payroll, taxes, and benefits, so you can focus on growing your business.
Reach out today for a personalized consultation and learn how Oyster can transform your talent strategy.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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