Employer of Record in France

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
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Why companies build teams in France

Lundi's French base — Paris for finance, tech, and luxury; Lyon and Toulouse as engineering secondary hubs. Built for companies needing French market presence, French-language talent, or the CIR/JEI/BSPCE tax structures — accepting Western Europe's highest employer cost and one of the world's most protective labor codes.

Languages

French

Payroll Frequency

Monthly

Currency

EUR

Capital City

Paris

Employer Tax Rate

50.00%

France is for companies that need a French-speaking team, French market presence, or access to France's specific tax incentives for innovation and R&D (CIR and JEI). It is Western Europe's highest-cost employer market — cotisations sociales add roughly 40–45% to gross. The labor law (Code du travail) is among the world's most protective: 35-hour week, conventions collectives sector-by-sector, very limited at-will termination. For companies needing scale at lower cost, Poland is 50–60% cheaper. For companies building teams of 10+ in France, not individual hires.

Why companies build teams here

France offers exceptional senior engineering, design, and technical talent — particularly in deep tech, AI, aerospace, luxury, and finance. The French startup ecosystem (Mistral AI, Doctolib, OVH, Datadog founders, Criteo) has matured significantly. The flip side: France is Western Europe's most expensive employer market and one of its most rigid on labor law.

Three operating hubs, three different specializations.

Paris concentrates the senior talent across functions. Strong fit for finance (BNP Paribas, Société Générale alumni), tech and product (the Station F ecosystem, Mistral AI, Doctolib, Qonto), luxury and consumer (LVMH, Kering), and senior consulting. International by default in tech and finance roles — many operate in English.

Lyon is the secondary tech and industrial hub — strong engineering with chemistry, biotech, and software at meaningfully lower cost than Paris (typically 20–25% below).

Toulouse is the aerospace and deep-tech hub — Airbus, Thales, plus a growing space-tech ecosystem. Strong fit for engineering teams in aerospace, defense-adjacent, or deep-tech specializations.

Sophia Antipolis (Côte d'Azur tech park) is a fourth specialised hub — historic semiconductor and telecoms (ST Microelectronics, Amadeus) with growing software depth.

Operating context. France is on CET — full European overlap, morning overlap with US East Coast. English proficiency in French tech, finance, and senior consulting is strong (often the working language in international firms); customer-facing and administrative roles generally require French. France vs UK: UK wins on English-native and senior fintech depth, France wins on engineering specialization and access to CIR/JEI tax benefits. France vs Spain: Spain is ~40% cheaper at senior tech tier and has Beckham Law for inbound hires; France wins on deep-tech and luxury talent depth.

Employer cost reality. Total cotisations sociales run roughly 40–45% above gross salary — the highest in Western Europe. This covers sécurité sociale, retraite (Agirc-Arrco), unemployment, CSG/CRDS, training, transport contribution, plus sector-specific charges. Mandatory: 5 weeks paid leave, RTT compensation for 35+ hour work, 13th month customary in many sectors. All-in employer cost typically lands ~50% above gross. Mid-level engineers in Paris run €55,000–€80,000/year gross; senior engineers €80,000–€130,000; engineering leads €120,000–€180,000+.

Employment Structure: EOR, Entity, or Build–Operate–Transfer

French employment is governed by the Code du travail plus extensive case law and sector-specific conventions collectives. It is one of the world's most protective regimes — termination requires either faute grave (gross misconduct, narrowly defined), licenciement économique with strict procedural compliance, or rupture conventionnelle (mutually-agreed termination with indemnity).

EOR works well up to 10–15 headcount. Lundi's French employment infrastructure handles full URSSAF registration, prélèvement à la source income tax withholding, mutuelle (mandatory complementary health) administration, RTT tracking, and convention collective compliance. The EOR ceiling in France is lower than most European markets given the operational complexity of French employment administration at scale.

SAS (Société par Actions Simplifiée) entity makes sense at scale or when CIR/JEI matter. A French SAS unlocks the ability to grant BSPCE (Bons de Souscription de Parts de Créateur d'Entreprise) — France's flagship employee stock option scheme with significantly more favourable tax treatment than standard option plans. SAS also enables CIR and JEI claims.

CIR (Crédit d'Impôt Recherche) — France's R&D tax credit. 30% of qualifying R&D personnel and operating costs are reimbursable as a tax credit (up to €100M qualifying base; 5% above). For engineering-heavy teams, this is materially significant — a senior French engineer at €100K cost can be net 30% cheaper after CIR. Lundi advises on CIR qualification at entity-setup.

JEI (Jeune Entreprise Innovante) status. Qualifying R&D-intensive companies under 8 years old can claim Jeune Entreprise Innovante status — reduced social charges (exemption on R&D personnel) plus CIT exemption for the first profitable year and 50% for years 2–3. Significant for early-stage tech companies.

BSPCE option schemes. France's BSPCE is the equivalent of UK EMI — a tax-favourable employee stock option scheme available to French SAS that have been generating at least €34K revenue, are under 15 years old, and meet other criteria. Capital gains tax at 12.8% (versus 30% standard PFU); no income tax/social charges at exercise. Critical for attracting senior French talent.

Why HRBP infrastructure is non-negotiable in France. Performance management, conventions collectives compliance, RTT tracking, and termination negotiation (rupture conventionnelle vs licenciement) require French-law-literate operators. Every Lundi France team includes a named HRBP from day one — French-fluent, present in your Slack or Teams. For 10+ headcount teams, this scales to a dedicated in-country HR partner.

Cost of Employment in France

In France, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in France below.

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Employer Tax Costs in France

Employers of French employees are required to pay health tax, autonomy solidarity contributions, old age insurance, family benefits, unemployment insurance, occupational health service tax, and a working from home allowance.

Employee Income Taxes in France

Employees in France are taxed between 0% and 13.6% depending on their income bracket. Old age insurance and social security are taxed on top of this.

Employee Probation in France

In France a probation period has a maximum duration that varies based on the type of contract (fixed term or indefinite term) as well as the professional category of the team member.

Employee Overtime in France

In France, maximum working hours differ depending on the type of contract you have: worker (salarie) or executive (cadre).For workers, the legal length of the working week is 35 hours. A work day should not exceed 10 hours, and employees may not work for more than four and a half hours without a break. The maximum working day may be extended to 12 hours under a mutual agreement between employer and employee.For executive contracts, the minimum amount of rest hours between working days must be 11 hours, and the minimum time off in a week must be 35 hours consecutive (this works out to at least one day off per week). In a year, the maximum number of days they can work is 214. Executive employees are also entitled to a minimum of 15 "RTT" days to compensate for overtime worked. Executives employees also have a statutory notice period of three months.For all employees in France, the first eight hours of overtime are subject to the payment of a premium of 25% overtime pay. After 43 hours, an employee is subject to an overtime premium of 50%.

Employee Notice in France

The notice period in France depends on the classification of the employee. For workers, one month's notice is required for an employment period of six months to two years. Two months’ notice is required for employment over two years or for supervisors. Executives are required to give three months’ notice.

Termination in France

France has strict rules around termination, and not adhering to those can lead to excessive legal costs. Employees with eight months of seniority or more for the same employer, on an open-ended contract, are legally entitled to severance compensation in case of dismissal on economic grounds or for personal reasons. However, employees are not eligible for severance compensation in case of dismissal for misconduct or negligence.‍For employees with up to 10 years of seniority, severance pay equals 25% of the employee’s gross monthly salary times years of seniority. For employees with 11 years of seniority or more, severance pay is 33% of the employee’s gross monthly salary. If employees are classified as an executive (cadre), they will also receive compensation for any unused annual holiday allowance and RTT.

How Lundi works in France

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.