Companies established outside France can post workers temporarily in France. To do so, the company must necessarily perform several conditions and compulsory formalities, and apply to posted employees the forecasted provisions of the labor code in certain matters.

 

Employers and employees, find here all the useful information concerning posting in France.

 

When a company with activities relating to Public Works posts employees to France, it is required, with the exception of exhaustively listed exceptions, to affiliate to the CNETP [National Fund for Public Works Contractors in France and Overseas].

 

This situation gives rise to specific formalities vis-a-vis its relationship with the Fund.

 

For more information on, cf. Foreign company posting staff to France.

 

The applicable formalities are strictly identical to those of national companies, subject to some modifications to facilitate the procedures of foreign companies. The following supporting documents must be submitted to finalise CNETP affiliation :

• The Identification form that provides information on the actual activity of the company and checks whether it does come under the CNETP,
• The membership form,
• A K-Bis [business register] extract from the company if such registration exists in its country of origin,
• The form of commitment to pay charges to the social security body in the country of origin,
• A RIB (bank identity statement) of the company and of each of the posted employees.

And the following documents to access online services on our website :

• ANET agreement
• TDP agreement  (see Online filing and payment (TDP) for more informations).

Like any national member, a foreign company must inform the fund before the 25th of each month, on a statement provided by it, of total wages earned by the declared staff of its company for the previous month.

 

At the same time, it must pay the corresponding contribution to the fund.

 

Just like French companies, foreign companies will have to pay legally and statutorily mandatory contributions, i.e., contributions for paid leave, seasonal and weather-related employment and the OPPBTP [French Organisation for Prevention of Occupational Hazards in the Construction Industry].

 

The rates applicable to foreign companies are exactly the same as those applicable to French companies.

 

Other contributions that the funds collect (Professional Federations, APAS, etc.), which are mostly optional, are not payable, as a foreign company is not intended to benefit from the resulting services given its temporary operations in France.

 

1.    Does legislation specific to funds apply to foreign companies ?

Yes, the French Labour Code expressly provides that :

• the conditions of subjection to the Funds form part of the “social nucleus” that a foreign company posting employees to France is required to comply with (Art. L.1262-4 of the French Labour Code);
• the application of the paid leave funds scheme to these foreign companies is legally provided for (Art. D.3141-14 of the French Labour Code).

Consequently, any company not established in France and comes to the country to perform a contract must, in principle from the first day of posting of its employees in France, affiliate and register its posted staff to the CNETP. It will therefore be required to pay the fund contributions for paid leave, seasonal and weather-related employment and the OPPBTP [French Organisation for Prevention of Occupational Hazards in the Construction Industry] for the entire period of posting.

In return, posted employees will be able to claim the benefits corresponding to each of these contributions.

2.      Are there any exceptions to the obligation for foreign companies to affiliate to the funds ?

YES, are 2 exceptions, provided for by the French Labour Code (Art. D.3141-26 and D.3141-27):

• a foreign company able to prove that posted employees benefit in their country of origin from leave rights equivalent to those provided for by French law may be exempted from the obligation to affiliate to the CNETP ;
• a foreign company able to prove that in its country of origin there are institutions equivalent to paid leave funds and that it is up to date with its obligations vis-a-vis these institutions likewise may be exempted from the obligation to affiliate to the CNETP.

To this end, CIBTP France (Réseau des Caisses de congés payés) [Paid Leave Funds Network] has signed agreements with various European paid leave funds to organise exemption rules vis-a-vis French funds if a foreign company can certify that it declares employees temporarily posted to France to a national paid leave fund and that it will continue to contribute to it for the entire duration of the posting.

3 agreements were signed with :

• ULAK (German Paid Leave Fund),
• BUAK (Austrian Paid Vacation Fund),
• CNCE (Italian Paid Leave Fund).

3.      With which paid leave fund should foreign companies affiliate to ?

This will depend in particular on whether the foreign company is located within the European Union or outside it and whether posted employees are affiliated with French social security or not.

As In principle, European regulations for the coordination of social security systems allow workers from an EU Member State posted to another Member State to remain affiliated to their social security system of origin.

The rules for determining the relevant paid leave fund are as follows :

Foreign company in the EU / EEA *		Foreign company outside the EU / EEA *
Application of the European regulation for the coordination of social security systems		Bilateral social security agreement	No bilateral social security agreement
If posted employee continued with social security of origin (possible for 24 months, with exceptions)	If posted employee affiliated to French social security (Urssaf Bas-Rhin one-stop centre)	The employee remains affiliated to social security of origin	The employee is affiliated to French SS (Urssaf Bas-Rhin one-stop centre)
The competent fund is the CNETP if the project concerned is a public works project	The competent fund is the CI-BTP one-stop centre, i.e., the CIBTP Ile-de-France fund, regardless of the project’s location	The competent fund is the CNETP if the project concerned is a public works project	The competent fund is the CI-BTP one-stop centre, i.e., the CIBTP Ile-de-France fund,regardless of the project’s location

* EEA (European Economic Area): 28 EU Member States + Iceland, Lichtenstein, Norway and Switzerlan

4.      Can a foreign company called on to operate on building projects maintain its affiliation with the CNETP ?

For the purposes of simplifying management and in order not to complicate the procedure for affiliation of foreign companies the funds, a foreign company may maintain the first fund of affiliation for its future postings, even if it is required to operate within projects whose activity does not come under the aforementioned fund.

In practice, a foreign company that has been affiliated to the CNETP under a posting for a Public Works activity must use this fund again for its further postings even if they concern a Building activity under a Building fund.

5.      How is the leave entitlement of posted employees calculated ?

It is calculated strictly according to the same methods as those applicable to French employees under the applicable legal and contractual provisions, whether in terms of generating or calculating paid leave entitlement.

Indeed, the 3 collective agreements governing Public Works (Workers, Employees, technicians, supervisory management and Executives) are extended, they apply to employees posted to France in the Public Works sector from on the 1st day of their work, including with regard to the relevant stipulated provisions.

6.      Do paid leave allowances paid to posted employees come under a specific social security scheme ?

YES, the specific aspect concerns social security charges applicable to paid holiday allowances paid by the CNETP, in terms of both employers and employees.

Foreign companies employing posted workers are not affiliated to social security contribution collection bodies (including URSSAF), since affiliation to the social security system of origin continues. Also, when the CNETP pays paid leave allowances to employees, it also pays their employer a contribution to the employer's social security charges relating to it so that the foreign company can make the necessary adjustments with the social security system of origin.

Likewise, no employee social security charge is deducted from paid leave allowances paid to posted employees and it the company’s responsibility to make the necessary adjustments in its country of origin. The gross amount of paid leave allowances paid to posted workers is equivalent to the net amount.

7.      When are paid leave allowances paid to posted employees ?

As an exception to the normally applicable rule which requires that payment of the paid leave allowance be made at the end of the reference period concerned and by the earliest in May, the paid leave allowances of posted employees are paid to them at the end of their posting.

By definition, posted employees are required to work temporarily in France and are supposed to return to their country of origin at the end of the posting.

1.      How is my leave entitlement calculated ?

Whenever a foreign company, your employer, is required to affiliate to the CNETP, your paid leave entitlement is calculated in the same way as those of permanent French employees.

2.      Can I receive a holiday bonus ?

Yes, under the same conditions as other employees, provided that the conditions set by the collective agreement for the category in which you belong are met, namely :

• an effective working time of 1 200 hours (or 7.90 months) over the reference period for workers,
• an effective working time of 6 months over the reference period for Employees, technicians, supervisory management / Executives.

3.      When are my paid leave allowances paid ?

BY EXCEPTION to the normally applicable rule which requires that the payment of a paid leave allowance be made at the end of the reference period concerned and by the earliest in May, your paid leave allowances are paid to you at the end of your posting.

In fact, by definition, posted employees are required to work temporarily in France and are required to return to their country of origin at the end of the posting.

4.      How are my paid leave allowances paid ?

As for French employees and for security reasons, your paid leave allowances are paid by bank transfer only.

Having foreign bank details does not pose any difficulty as long as it contains the BIC and IBAN codes required for payment by transfer.

5.      Are my paid leave allowances subject to social security charges ?

You remain affiliated to your social security system of origin during the period of posting in France. As a result, no social security charges, whether employee or employer charges, are deducted from your paid leave allowances.

Thus, the gross amount of your paid leave allowance will be equivalent to its net amount.

6.      Are my paid leave allowances taxable ?

If the posting in France lasted less than 183 days, and in accordance with the tax provisions provided for in Article 182 A of the French General Tax Code, the remuneration received in this regard is not taxable in France.

If the duration of the posting has exceeded this threshold, a withholding tax for French income tax will be applied to you. As such, a certificate must be completed by your employer and returned to the CNETP.