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WORKING IN FRANCE

EXPLAINED: What you should know if you want to quit your job in France

You may have heard that getting a permanent contract job in France is like finding the golden egg, but what if you want to quit? Here is what you need to know:

EXPLAINED: What you should know if you want to quit your job in France
Photo by Nick Fewings on Unsplash

Quitting your job in France is not that tricky, but there are a few things foreign workers you should be aware of. 

The first is that a “resignation” (la démission) in France is technically reserved for people that were on permanent work contracts. If you were on a fixed-term contract (CDD) then it is a bit trickier to resign – in most cases, you will need to prove you have been hired for a permanent contract job (a CDI). 

The second is to use ‘lettres recommandé‘ whenever possible – this is the type of letter where the recipient must acknowledge receipt. 

As alluded to, how to quit depends on which contract you were previously on, so the first step is to check which type of contact you have:

For employees on a permanent contract (CDI)

For salariés (or employees with the CDI contract) – you can technically “decide to leave [your] job at any time.”

Your resignation does not have to be ‘accepted’ by your employer, but you do have to give formal notice. The amount of time for the notice period depends on your contract – typically it is between one to three months prior to your final work date. For some professions, the notice period is set by a collective agreement and is listed in your employment contract; for others, the notice period is set by the law. 

You can check to see whether your industry has a ‘collective agreement’ regarding the notice period for resigning by using this simulator created by the French Labour Ministry. 

You can only be exempted from the notice period if you fall into one of the following categories:

  • You are pregnant or just gave birth – resignations motivated by pregnancy only require 15 days notice to the employer. Keep in mind your pregnancy must be “medically certified” (I.e. you’ll likely need to show documentation)
  • You wish to resign in order to raise your child after taking parental leave 
  • If you have already taken a leave of absence to create your own company 
  • If you are a journalist, and you are resigning due to the ‘conscience clause’
  • If your employer has exempted you from needing to respect the notice period. If this is the case, it is recommendable to get the exemption in writing.

You should keep in mind that this applies to anyone with a CDI job – which can include minimum wage workers.

What happens if you don’t respect the notice period?

You can be required to pay compensation to the company caused by your ‘rupture brutale.’

Keep in mind that once you submit your resignation, it is typically not retractable. If you wish to withdraw your resignation, you would have to do so within a short period of time after submitting it. The form of withdrawal depends on your company and contract. 

After resigning, your employer must give you specific documents, including your work certificate, a certificate of employment for the pôle d’emploi, a receipt showing your final salary, and finally a summary statement of any savings plans or profit-sharing schemes you took part in as an employee.

What about my paid leave?

Employees are entitled to payment in lieu of paid leave if they have been unable to take all their leave before the contract termination date.

However, if you are looking to take your paid leave after sending your resignation letter, then you could risk having your notice extended by as many days as you left for holiday. While your employer might waive this and allow the notice period to continue running while you are on vacation, keep in mind that they do not have to.

Any agreement – whether the period is extended or remains the same – would need to be communicated in writing between employer and employee.

Finally, your employer cannot force you to take paid vacation during your notice period if you have outstanding days. 

Can I qualify for unemployment benefit after quitting the job?

According to official French government websites, “Employees who resign are not, in principle, eligible for unemployment allowance known as the Allocation de retour à l’emploi (ARE) or le chômage as most people refer to it in France.”

That’s because le chômage, which is paid out for a certain period of time and of which the monthly amount is linked to the previous job’s salary, is basically only those who have lost their jobs through no fault of their own are entitled to this particular unemployment benefits.”

In some cases, you might be able to apply for unemployment insurance if you can prove that you”

  • Moved house (to accompany their spouse, civil partner, etc.).
  • Left your job to complete a training course that would offer a certification or a qualification
  • Plan to set up or take over a business.
  • Plan to enroll in a vocational retraining program.
  • If you are “engaged in a civic service or volunteering activity”

What about a “Rupture conventionnelle“?

This is when a permanent contract is terminated via mutual consent between the employer and the employee. Either party can request a rupture conventionnelle, but it cannot be imposed or forced on an employee by the employer.

Some critiques are that this option is a means of amicable dismissal for the employer, but it offers benefits for both the employee and the employer. 

The primary benefit to the employee regarding the rupture conventionnelle is the ability to access unemployment benefits afterwards, as well as a severance package (as negotiated with the employer). It can offer an alternative to simply resigning.

Severance pay cannot be less than the legal minimum, though if you are in a field that has collectively negotiated for severance pay standards, the minimum might be higher.

There is a specific legal procedure that must be followed for a rupture conventionnelle. The termination agreement must begin with a series of interviews, and then a written contract will be drawn up, which will then be validated by the DDETSPP (essentially the employment offices for your département). 

There is no notice period – the employee leaves on the agreed date.

If your employer rejects your request for a rupture conventionnelle, then you would follow the procedure listed above to resign.

Employees with a fixed-term contract (CDD)

If you are still in the ‘période d’essai‘ (trial period) then you can terminate your contract at any moment without needing to provide any justification. 

Outside the trial period, a CDD job may be terminated before the end of the contract under the following circumstances:

  • The employer and employee have made an agreement (best to get this in writing)
  • If the employee can prove they have been hired on a permanent contract (CDI). You should indicate in writing your intent to terminate the contract as well as showing proof of hiring (a promise of hiring, promesse d’embauche, or an employment contract, for instance). 
  • Serious misconduct (faute grave) – this is if the employer chooses to terminate the employee’s contract due to wrongdoing. Some examples of serious misconduct might be drunkenness during working hours, unjustified absences or an abandonment of post, insubordination (refusal to perform a work task provided for in the contract), harassment or violence towards the employer or other employees, or theft. You can learn more about what constitutes serious misconduct HERE.
  • Force majeure” – this is if the employee can demonstrate that they are going through an “unforeseeable and insurmountable” event that is “beyond their control” and makes continuing the employment contract impossible. Learn more HERE.
  • Incapacity to perform the job, accompanied by a doctor’s note

Technically, when quitting a CDD job, you must still respect a notice period, unless your employer waives it. Usually, the duration is calculated on a rate of one day of notice per week worked. This might be specified in your contract, but your notice period should not exceed two weeks. 

If there is ‘termination by mutual agreement’ then it is not mandatory to provide a notice period. You can also attempt to negotiate this with your employer.

How do I resign?

The best way to resign is by sending a ‘recommended’ resignation letter. You can find a template on the service-puclic.fr website HERE.

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WORKING IN FRANCE

URSSAF: What is it, how it works, and how it affects you

if you are working as a freelancer, contractor or have set up a business in France you will need to become familiar with the social security collections agency Urssaf. Here's what it is and how it works.

URSSAF: What is it, how it works, and how it affects you

Unions de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiales – more usually known, because that’s a mouthful, by the acronym Urssaf – are the administrators who collect social security contributions that fund a large part of France’s labyrinthine social security system, including, notably, health insurance.

It is responsible for collecting some €534.4 billion from 9.8 million users every year to help fund social security in France.

If you’re an employee in France, you will probably have nothing directly to do with Urssaf, because – for the most part – dealing with it will fall into the realms of Somebody Else’s Problem (ie your employer). 

But if you are freelance, a contractor or set up your own business you will almost definitely have to deal with Urssaf. 

Type of regime

Many people working for themselves in France use the simplified Micro Entrepreneur regime – often still referred to as auto entrepreneur – which sets up a basic sole trader-style business. 

Its advantage is (relative) simplicity but it has limits on earnings as well as other limitations like being able to write off business expenses.

Micro-entrepreneur: How to set up as a small business in France

Other options for freelancers or sole traders include the Entrepreneur individuel à responsabilité limitée (EIRL – basically a limited liability sole trader); Entreprise unipersonnelle à responsabilité limitée (EURL – another sole trader option), Société par Actions Simplifiée Unipersonnelle (SASU); or Société à Responsibilité Limitée (SARL).

These allow for higher earnings but are more complicated and may require an accountant to set up.

If you start off as a micro-entrepreneur but then your earnings go over the threshold you can switch to another regime without attracting a penalty.

How to register 

These days the whole registering a business thing can be done online. For a simple micro enterprise, you can create an account on autoentrepreneur.urssaf.fr, then give details of the business you intend to run, and your social security numbers. 

If you’re looking to set-up a more complex business structure such as a EURL, SARL, SASU, or SAS, you should start with the portail e-procédures at procedures.inpi.fr.

You must then send off the declaration, which is registered with the relevant Centre de formalités des entreprises;

  • For commercial businesses eg shops or bars, this is the Chambre de commerce et d’industrie;
  • For artisans, craftspeople, tradespeople and some other commercial businesses, it is with the chambre de métiers et de l’artisanat;
  • For professions libérales – including, for example, freelance journalists – it is with Urssaf.

Within 15 days of registration, you should receive your business registration number, known as the SIRET number.

Notice that you have been signed up to the relevant social security regime should follow in a few weeks. 

Since 2020, all independent workers belong to the Assurance Maladie health regime, and a few professionnels libéraux are signed up to the standard Assurance retraite for their pensions. 

How much does it cost to set up a business?

That depends on your business. Setting up as a micro entrepreneur (auto entrepreneur) costs nothing administratively and is the simplest way for freelancers to set up for themselves. 

Technically speaking it is a tax status rather than a business structure. 

Then what?

Once you’re up and running, the most regular contact with Urssaf should be when you file your earnings online, which – for micro entrepreneurs – can be done monthly or quarterly using the auto entrepreneur website.

You will then be informed how much you owe in cotisations, (social security contributions) which will be taken out of your bank account around a month later.

 If you have a French-incorporated business, such as EURL, SARL, SAS or SASU, you will use URSSAF’s main website www.urssaf.fr, or get your accountant to do so. Some business set-ups in France require you to use an accountant.

READ ALSO Ten tips for working as a freelancer in France

Banks

Note that you will need to set up a dedicated bank account for your business. As a micro entrepreneur, despite claims from banks, it does not have to be a business account (which attract larger fees). But it should be separate from your personal bank account, and just used to pay your charges, for any business expenses (which you cannot claim for, if you’re a micro entrepreneur). 

Other business regimes, such as the Entrepreneur individuel à responsabilité limitée (EIRL – basically a limited liability sole trader); Entreprise unipersonnelle à responsabilité limitée (EURL – another sole trader option), Société par Actions Simplifiée Unipersonnelle (SASU); or Société à Responsibilité Limitée (SARL), have certain advantages on allowable earnings, compared to the very basic micro-entrepreneur regime – but will incur a sliding scale of charges on set-up, and require different book-keeping and accounting systems. Some will also require you to be registered for VAT.

Do I need an accountant?

This is really a personal choice – the micro-entrepreneur regime is designed to be simple and to be used by individuals, but some people still prefer to use an accountant.

The business structures for higher earners are a little more complicated and may require an accountant to set up. Most people use accountants if they are within these structures, unless they are confident in both their French and their book-keeping abailities.

If you have an accountant you can nominate them to be your representative in any dealings with Urssaf, although note that you are still responsible for any fees and charges, even if they are incurred by your accountant making a mistake.

Okay — how much do you pay in charges?

For micro-entrepreneurs, social charges can be paid monthly or quarterly. They are calculated as a fixed percentage of your earnings, depending on the type of work.

Rates are 12.8 percent for the sale of goods, 22 percent for artisanal and commercial services, 22 percent for professions libérales attached to the standard Assurance Retraite for retirement, and 22.2 percent for a small number of professions libérales attached to Cipav. 

A levy of 0.1 percent to 0.3 percent is also charged. It goes to the CPF fund giving all workers the right to a financial contribution for training.

Note, micro-entrepreneurs are limited in the amount they can earn: for business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €188,700.

For service and professional activities, the threshold is €77,700.

Micro entrepreneurs will be obliged to step up to another business regime if they break these earnings thresholds.

For other business types, these maximum earnings thresholds do not exist, but bosses will have other requirements, for example, they may need to use the services of an accountant, and will have to be audited once they cross a certain earnings threshold.

Taxes

It’s important to note that Urssaf deductions are only part of the story – there are also other taxes to consider.

Personal income tax is covered in the annual income tax declaration, while businesses taxes fall under a range of tax regimes, depending on your type of business.

Commercial, industrial, or manual/trades/crafts businesses fall under the Bénéfices Industriels et Commerciaux (BIC) system. Professional businesses fall under the Bénéfices non Commerciaux (BNC) system. Agricultural businesses use the Bénéfices Agricole (BA) system.

Don’t forget, either, the Contribution Fonciere des Entreprises (CFE) property levy, a local tax payable by any company or self-employed person earning more than €5,000 per year, even if they conduct their business at home, at the kitchen table. This one is due every December.

What if I have a problem?

You can contact Urssaf staff online via the website, or arrange an appointment for a face to face meeting at their offices, if you prefer. Contrary to popular opinion, they’re there to help you.

Urssaf, in the past, had a poor reputation. But, as with all French bureaucracy, it’s better to work with it rather than try to fight or resent it.

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