Effective 1st July 2017, foreign employers transferring employees to France on assignment, under detachment status (i.e. remaining on home payroll), regardless of their nationality, will be required to indicate the country where the employee will be covered for social security. In addition, a decree (No. 2017-751) of 3rd May 2017 has fixed the administrative fee which will have to be paid by the employer on making a detachment declaration, at EUR 40. The fee will be implemented sometime before 1st January 2018.
Social security coverage
If the transferee is coming from a country which has a social security treaty agreement with France, and the employee is therefore remaining on “home country” social security, this must be indicated. Should there not be a social security treaty agreement between the home country and France, then it is mandatory for the employee to be registered for French social security at least two working days prior to arrival in France. As of 1st July 2017, this information must be indicated on the prior detachment declaration.
Who is affected?
This applies to all foreign companies transferring employees (both EU and non-EU nationals) to France for assignments: intra-group transfers, temporary detachment as service providers, independent self-employed workers and temporary employees working for a temporary employment agency.
Record-keeping compliance for assignments
To be compliant the French host company (usually the onsite HR manager) must receive the following documents before the employee starts the assignment:
- A copy of the filed prior detachment declaration
- A copy of the letter designating the legal representative, who must be in France, and proof of submission of the letter with the labor inspection
- A copy of the employee’s ID
- If applicable, a copy of the approved work permit
The legal representative in France, must have at the disposal of the French labor inspection the following documents:
- A copy of the employee’s ID and, if applicable, a copy of the approved work permit
- A copy of the prior detachment declaration filed
- The letter designating the legal representative, and proof of submission of the letter with the labor inspection
- A copy of the employee’s pay slips
- A copy of time sheets, that we suggest should be signed by the employee and the home country manager;A copy of the proof of payment of the salary (this can be a copy of a wire transfer or cheque)
Employers sending employees on assignment to France on detachment status must ensure that they submit a prior detachment declaration including all the required information, designate a legal representative in France and provide them with access to the documents required for inspection.
Companies in France hosting these assignees must ensure that they maintain the required documents ready for inspection.
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