Employer with no establishment in France: Hire with Ease

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Employer with no establishment in France: Your Obligations in France

What are the obligations of a foreign company without a permanent establishment in France?

As soon as you hire an employee in France, you are subject to the same obligations as any employer established in France. Health insurance, employee benefits (provident insurance), and supplementary pensions: your employees’ social protection must comply with French regulatory requirements. 

You must register each employee with the French Social Security system, regardless of their nationality or place of residence. This affiliation requires the payment of social contributions (health, pension, unemployment) to URSSAF.

ESEF: Which employees are concerned?

Any company based outside France, without an establishment in the country, is subject to specific social obligations when employing staff in France. 

This applies to employees for whom French Social Security legislation is applicable, particularly in the following situations: 

  • The employee works permanently in France and is therefore subject to the French system 
  • The employee is temporarily assigned to France without qualifying for detached worker status and is therefore affiliated with the French system 
  • The employee works across multiple EU Member States but is affiliated with the French system due to residence in France

Registration with the Foreign Companies Department (URSSAF)

For employees based in France, you must declare and pay social contributions to the Foreign Companies Department of URSSAF. Registration must be completed with the Centre National des Firmes Étrangères (CNFE) by submitting the E0 form. This process allows you to obtain a SIRET number and open an employer account with URSSAF. 

If you employ fewer than 20 employees, the Titre Firmes Étrangères (TFE) scheme can simplify hiring and reporting procedures. 

Certain cases are excluded from the “foreign companies” scheme, including : 

  • Companies established in Monaco (which report to URSSAF Provence-Alpes-Côte d’Azur) 
  • Occasional event organizers hiring performers or technicians (via GUSO) 
  • Professionals in the bullfighting sector (subject to specific declarations)

How to Hire an employer with no establishment in France's employee: Key Steps

Pre-employment declaration and tax obligations 

Before the employee’s first working day, you must submit a Declaration Prior to Hiring (DPAE) to URSSAF. This mandatory step ensures the activation of the employee’s social rights. 

You must then : 

  • Pay monthly social contributions 
  • Submit the Déclaration Sociale Nominative (DSN)

Drafting an employment contract compliant with French law 

The employment contract must be written in French (or bilingual if requested by the employee). It must include: 

  • Workplace 
  • Salary (at least the legal minimum) 
  • Working hours 
  • Applicable collective bargaining agreement (if any) 

These elements ensure compliance with French labor law and protect the employee.

Payroll and unemployment insurance compliance 

Salaries must be paid in euros, with income tax withheld at source. 

You must contribute to unemployment insurance via URSSAF at a rate of 4% (since May 2025), fully borne by the employer. 

These contributions are in addition to other mandatory charges (health, pensions, family benefits) and must be declared monthly via the DSN.

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Working in France for a Foreign Company: Employee Rights

Affiliation to French Social Security 

From the moment they are hired, employees benefit from mandatory affiliation to French Social Security, granting access to: 

  • Healthcare reimbursements 
  • Daily allowances in case of sick leave 
  • Full benefits under the general scheme 

This protection applies regardless of nationality.

Mandatory supplementary pension contributions 

All private-sector employees must contribute to the Agirc-Arrco supplementary pension scheme. 

  • Contributions are deducted from gross salary 
  • Pension points are accumulated throughout the career 
  • Cost sharing: ~60% employer / ~40% employee

Health insurance and employee benefits (provident insurance): Employer with no establishment in France’s obligations

Foreign companies employing staff under the French Social Security system must comply with the same obligations as French employers regarding supplementary benefits. 

Health insurance (mandatory) 

You must provide collective health coverage in line with the National Interprofessional Agreement (ANI): 

  • Covers all employees (unless exemptions apply) 
  • Must be a “responsible” contract (tax and social advantages) 
  • Minimum 50% employer contribution

Provident insurance (prévoyance) 

Requirements vary depending on employee status and collective agreements: 

  • Executives: mandatory death coverage 
  • Non-executives: coverage may be required depending on the applicable collective agreement 

These benefits cover major life risks: 

  • Sick leave 
  • Disability 
  • Incapacity 
  • Death

Solutions for Employers Based Outside France 

Malakoff Humanis offers a full range of health and provident insurance solutions tailored to foreign companies without a presence in France. 

You benefit from the same advantages as French companies: 

  • Level of coverage 
  • Employee services 
  • Personalized support 

Our solutions include: 

Entreprises Santé + 

  • Customizable reimbursements 
  • Alternative medicine coverage 
  • employee assistance services 

Entreprises Prévoyance +

  •  Coverage for sick leave, disability, and death 

Subscription can be completed directly from your headquarters, anywhere in the world. 

Our bilingual experts support you to ensure full compliance with French regulations.

Benefits of choosing Malakoff Humanis: 

  • Immediate compliance with French regulations 
  • Dedicated bilingual support 
  • Simplified management from your headquarters 

  • Tax and social advantages: 

    Contributions are tax-deductible 

    Partial exemption from social charges

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ES+

  • Posted worker is temporary and allows the employee to remain affiliated with their home country’s system for a limited period. 

    Under ESEF status, the employee is mandatorily affiliated with French Social Security, with no time limitation.

  • You can rely on: 

    • Specialized international payroll/accounting firms 
    • Malakoff Humanis, offering dedicated bilingual support 

    Our advisors help you: 

    • Secure your social obligations 
    • Select appropriate health and provident coverage 
    • Ensure full regulatory compliance