Expanding into France is one of the most attractive moves for an international group — and one of the most legally dense. French employment law is protective, codified, and unforgiving of improvisation. The good news: you do not need a French company to employ someone in France. But you do need to do it the right way from day one.
This guide explains, for a foreign employer, the three legal routes to hiring in France, your core obligations, and the mistakes that most often turn a simple hire into a costly dispute.
Can a foreign company hire in France without a local entity?
Yes. A company with no establishment in France can legally employ staff there. You have three routes, depending on your ambitions and appetite for administration.
Route 1 — Register as a foreign employer with URSSAF
A company based abroad, with no establishment in France, can register directly with URSSAF’s dedicated service for foreign firms (“entreprise étrangère sans établissement en France”). You become the direct employer: you run French payroll, pay French social contributions, and the employee is fully covered by French labour law. This is the cleanest route when you want a genuine, lasting French workforce without incorporating.
Route 2 — Use an Employer of Record (EOR)
An Employer of Record becomes the legal employer of your worker in France, while the person works for you day-to-day. It is the fastest way to onboard one or two people and test the market, with the EOR handling contracts, payroll and compliance. The trade-off is cost and less direct control over the employment relationship.
Route 3 — Incorporate a French entity (subsidiary or branch)
For scale, a hub, or client-facing operations, setting up a subsidiary (filiale) or branch (succursale) is the structural answer. It is heavier to establish but gives you full autonomy and local substance.
Rule of thumb: 1–2 hires to test the market → EOR. A stable French team without a company → foreign-employer registration. Real local operations → a French entity.
Your core obligations once you employ in France
Whichever route you choose, employing someone on French soil means French law applies. The essentials:
- A written contract, in French. French law does not require a written contract for a permanent full-time role (a CDI is presumed), but the applicable collective agreement almost always requires one — and fixed-term (CDD) and part-time contracts must be in writing. Under the Loi Toubon, the employee is entitled to a French-language version.
- The applicable collective bargaining agreement (convention collective). French sectors are governed by conventions collectives that set minimum pay grids, classifications, notice periods and benefits — often more favourable than the Labour Code. Identifying the right one (by IDCC code) is step zero, not an afterthought.
- Minimum wage and working time. The statutory minimum wage (SMIC) applies, the legal working week is 35 hours, and employees accrue 5 weeks of paid leave per year.
- Social contributions. Employer social charges add roughly 40–45% on top of gross salary — budget for this from the start.
- Mandatory complementary health insurance (mutuelle). Since 2016, employers must offer and co-fund a collective health plan.
- The pre-hire declaration (DPAE). You must file a Déclaration Préalable À l’Embauche with URSSAF before the employee’s first day. Skipping it exposes you to serious penalties.
- Occupational health and payslips. Enrolment with an occupational-health service and compliant monthly payslips are mandatory.
What surprises international employers the most
If your reference point is US or UK employment, three things will feel very different:
- No at-will employment. You cannot dismiss “for any reason or no reason.” Every dismissal must rest on a real and serious cause (cause réelle et sérieuse) and follow a strict procedure. Get it wrong and you owe damages set by the Barème Macron (Article L.1235-3).
- Notice periods and procedure are non-negotiable. Statutory minimums apply and the convention collective often extends them, especially for executives (cadres).
- Probation is capped and framed by law. The maximum initial probation is two months for employees, three for supervisors, and four for executives — renewable once only if the agreement allows.
The pitfalls that cost the most
- Hiring before the DPAE — a formality that becomes a liability if missed.
- Ignoring the convention collective — applying the Labour Code alone underpays or under-protects, and creates back-pay exposure.
- Copy-pasting a foreign contract — clauses valid abroad (broad non-competes, at-will language) are void or dangerous in France.
- Underestimating the true cost — the ~40–45% employer charges and mandatory benefits change the business case.
- Treating dismissal as a decision, not a procedure — the biggest source of litigation for foreign employers.
Frequently asked questions
Do I need a French company to hire in France? No. You can register as a foreign employer with URSSAF, or use an Employer of Record.
In which language must the contract be written? French. The employee is entitled to a French version, even if a bilingual contract is used.
How much do employer social charges cost? Roughly 40–45% on top of gross salary, depending on the role and sector.
Can I dismiss an employee freely during the trial period? More freely than after, but not without limits: the reason must relate to professional skills, and notice rules apply.
Start with the right structure — talk to a French employment lawyer
Most costly disputes we see with international employers trace back to a decision made at the hiring stage — the wrong route, the wrong collective agreement, a foreign contract dropped into a French context. Getting the foundation right is far cheaper than fixing it later.
DAIRIA Law advises international companies on French employment law, in your language. Schedule a free 30-minute consultation — or ask DAIRIA AI your first question instantly.
This article is general information on French employment law as of 2026, not legal advice on a specific situation.