France enforcing new documentation requirements
13 May 15
IMPACT – MEDIUM
What is the change? France is enforcing new rules that place documentation requirements on foreign employers seconding workers to France.
What does the change mean? Affected employers should keep employees’ work permits, medical clearance records and pay slips, among other documents, at their French work sites.
- Implementation time frame: Ongoing.
- Who is affected: Companies headquartered outside France that are doing business in France; companies in France that are contracting with companies headquartered outside France.
- Business impact: The requirements add new administrative procedures for businesses.
- Next steps: Employers should make sure they are complying with the new requirements and review internal procedures and put appropriate record-keeping practices in place.
Background: The new rules are outlined in a March 31 decree that provides guidelines on the implementation of a law passed on July 10, 2014.
The decree in part covers documentation requirements, which apply to companies headquartered outside France that do business in France. Among the documents employers must keep at the workplace of seconded employees in France are work permits, copies of employee contracts, medical clearance records, proof of compliance with social insurance laws (for companies headquartered outside the European Union), a copy of an affidavit naming a representative for the company in France, timesheets, documents certifying actual payment of wages, and, in cases where the secondment is at least one month, pay slips. The pay slips should include information about wages, premium pay, and holiday and paid leave remunerations.
The decree also covers “watchfulness requirements,” which apply to companies in France that are contracting with companies headquartered outside France. Under the decree, these companies are required to ensure that foreign employers follow established rules for seconding employees to France, including naming a company representative inside France.
BAL Analysis: Employers should make sure they are in compliance with the new requirements. Contact a BAL attorney with any questions about the new rules.
This alert has been provided by the BAL Global Practice group and our network provider located in France. For additional information, please contact your BAL attorney.
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