Readers may recall our report on the particular complexities of posting workers into France.
Recent legislation imposes additional controls and duties on companies in France which use posted workers (a “Host Company”):
- Suspension of work: As we previously reported, any foreign employer posting an employee to France (the “Home Company”) must submit a declaration of posting to the French labour authorities before the employee starts working in France. In compliance with a law passed in May 2017, should the Host Company not receive a copy of the posting declaration within 48 hours after the employee starts working in France, the contract may be suspended, until the registration is received.
- New notification duties towards posted workers on building sites: In the event of a work-related accident, the Host Company is responsible for declaring the incident. To do so, the Host Company shall fill in the dedicated form available online (n°14463*02).
Tax exemption for posted workers
There is good news for posted workers, however, which may encourage continued use of posted arrangements despite the complex rules. A new special taxation scheme was put in force in 2003 and allows posted workers to be tax-exempted under certain conditions. A new law this year increased the duration of this tax privilege from 5 to 8 years.
What does this mean for employers?
Even short term cross-border postings into France can trigger these obligations. It is therefore essential that international employers track international assignments or postings into France, as an inadvertent breach of the rules could carry significant sanctions for both Home and Host Companies. See our previous report for details.
The regulation of posted worker arrangements remains a hot topic in France, with calls from President Macron to limit the period of residency of posted workers to avoid undercutting French workers.
For more information about this please contact Stéphanie Le Men-Tenailleau of Galahad on +33 1 40 06 28 29 or Marie-Claire Pottecher of Fidere on +33 1 85 08 84 55.