France – New Order to Prevent Secondment and Illegal Work Related Fraud

What has changed

On March 30th, 2015 an application decree was issued to allow the implementation of the July 10th, 2014 law on social unfair competition.

This order clarifies and lists the obligations of any foreign employer posting foreign nationals to France and that of any customer or project owner as part of outsourcing services or services agreements.

Who is affected?
What to expect

  • Employers posting foreign nationals to France and customers or project owners part of outsourcing services or services agreements

This application decree is geared towards any kind of posting/secondment, for example: services agreements, intra-group transfers, own-account services agreements or temporary work/ secondments via a temporary work agency.

The new obligations are as follow:

  • A more detailed declaration of secondment

The declaration that any foreign employer sends to the French Labor authorities must include more information on the foreign employer, the receiving company in France, the identity of the seconded individual, the scope of their assignments, the travel and food allowances paid, and the accommodation expenses taken by the employer.

  • New documents to be provided to the French labor authorities

In addition to the usual documentation (work permit, medical certificate and payslips, proof of social security registration/proof of compliance with social security obligations), any document related to the actual payment of the salary, to the daily schedule, and a copy of the document appointing a representative in France by the foreign employer are now needed. These documents have to be kept centrally and available to the appointed French representative.

  • Obligation to appoint a representative in France

The foreign employer must appoint a representative responsible for communicating with and providing all necessary documentation to the tax authorities, police, customs, or labor office during the assignment.

  • Obligation of the host company’s representative to hold each declaration of secondment on file 

A copy of each declaration of secondment has to be stored in a personnel file/ the staff register and must be made available to the tax, police, customs, or labor officers.

  • Customer or Project Owner’s obligation to check that the declaration of secondment has been duly made

The customer or project owner, as part of outsourcing services or service agreements, now has the obligation to check that the foreign employer has sent the declaration of secondment to the relevant French authorities and appointed a representative in France prior to the assignment’s start date.

Administrative penalties:

  • If the foreign employer does not send the declaration of secondment or appoint a representative in France they may be liable to a fine of up to 2,000 euros per seconded assignee (the total amount of the fine not exceeding 10,000 euros).
  • The customer or project owner may be liable to a fine of up to 2,000 euros per seconded assignee (the total amount of fine cannot exceed 10,000 euros) if they fail to hold a copy of the declaration.

The customers or project owners are now accountable to ensure that:

  • The salary paid to the co-contractor or sub-contractor meets the French legal or conventional minimum salary.
  • The co-contractor or sub-contractor respects the French labor law toward the secondee(s).
  • The secondee(s)’ living conditions respect human dignity.

What you need to do
Planning ahead

  • Employers need to ensure that they meet their obligations to avoid possible penalties.
  • Contact your Emigra Worldwide attorney or representative for further details on how these updates may impact you or your clients.

    The information above was provided by Emigra Worldwide, our global network partners, and relevant government authorities. The information herein is for general purposes only and not intended as advice for a particular matter. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work.

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