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Professionalisation Contracts and Hiring Incentives

Claire Molina — Mon, 30 Jun 2025 16:39:51 +0000

In a constantly evolving economic context, companies aim to balance performance and social responsibility. The professionalisation contract has become a strategic tool for training, integrating, and retaining new talent.

In 2025, France Travail is strengthening its support for employers through several targeted financial aids.

What is a Professionalisation Contract?

The professionalisation contract is a work-based training agreement (either fixed-term or permanent) that allows employees to gain a recognised professional qualification while working within a company. It is aimed at:

Young people aged 16 to 25 seeking to complete their initial training;
Job seekers aged 26 and over;
People with disabilities.

This contract alternates between theoretical training (minimum 150 hours) and practical experience in the company, with the support of a training mentor.

Hiring Incentives in 2025

With all recruitment aids now centralised under France Travail, companies have easier access to various financial supports when hiring under a professionalisation contract. These aids are designed to help cover the cost of training and wage-related costs while promoting the recruitment of young people, job seekers, or people with disabilities.

1 – The “Aide forfaitaire à l’employeur” (AFE) for Hiring Job Seekers Aged 26 and Over

Amount:

Up to €2,000

Conditions:

The employee must not have worked for the company in the previous six months;
The position must not have been made redundant due to economic reasons in the last six months;
The company must be up to date with social security and unemployment insurance contributions;
The aid is paid in two instalments, provided the contract is still active at the time of the second payment.

Formalities:

Apply via the France Travail employer portal within three months of the contract start date;
Submit a signed copy of the professionalisation contract (Cerfa no. 12434*05);
Provide the OPCO’s financial approval or proof of submission;
Submit the company’s bank details.

2 – State Aid for Hiring Job Seekers Aged 45 and Over

Amount:

Up to €2,000 in addition to the AFE

Conditions:

Subject to contract validation by the OPCO;
The employee’s age is assessed on the contract start date;
Managed by France Travail;
Application must be submitted within three months of the contract start date.

Formalities:

Automatically granted if the online AFE application is submitted and the age condition is met.

3 – Aid for Hiring People with Disabilities

Amount:

From €500 (6-month contract) up to €3,000 (permanent contract)

Conditions:

Contract must last at least six months and include 24 hours of work per week;
Cumulative with France Travail and Agefiph aids;
May be extended or renewed in the case of a repeat or additional qualification, and is renewable in the case of preparation for a higher-level qualification.

Formalities:

Application via Agefiph’s website within three months of contract signature;
Required documents:
- Signed professionalisation contract (Cerfa no. 12434*05);
- Proof of disability status (RQTH);
- Company bank details;
- OPCO financial approval or proof of submission.

Professionalisation vs Apprenticeship Contract

Although both contracts share the concept of combining theoretical learning with practical training, their terms, target audiences, and financial implications differ significantly.

Criteria	Apprenticeship Contract	Professionalisation Contract
Target Audience	Young people aged 16 to 29 (with possible exceptions)	People aged 16 and over (no age limit)
Training Objective	Initial training (diploma or professional qualification)	Continuing training (vocational qualification)
Duration	1 to 3 years depending on the diploma	6 to 12 months (up to 36 months in some cases)
Trial Period	45 working days in the company, excluding CFA time	As per standard labour law short term/permanent contract rules

Salary in case of Apprenticeship Contract

% of SMIC or SMC depending on age and contract year

Important note: When an apprentice signs a new apprenticeship contract, their salary cannot be lower than that which they received during the last year of their previous apprenticeship contract, if the latter is more advantageous. It is therefore essential to check whether there was a previous apprenticeship contract in order to be able to accurately assess the cost of taking on a new apprentice.

Salary in case of Professionalisation Contract

% of SMIC (or 85% of SMC if more advantageous)
depending on age and training level

Criteria	Apprenticeship Contract	Professionalisation Contract
Employee contributions	If the gross salary is less than 50% of the minimum wage, the exemption remains total. The part of the gross salary exceeding 50% of the SMIC is subject to standard employee contributions, including CSG/CRDS.	The employee’s gross salary is subject to standard employee contributions, including CSG/CRDS.
Employer contributions	Gross salary subject in full to standard contributions (social security, pension, unemployment, etc.) General reduction of contributions is applicable	Gross salary subject in full to standard contributions (social security, pension, unemployment, etc.) General reduction of contributions is applicable
Hiring Aids	One-off apprenticeship aid for the first year of the contract only: – Up to €6,000 for the recruitment of disabled apprentices, regardless of the size of the company (can be combined with other specific aid); – Up to €5,000 for companies with fewer than 250 employees; – Up to €2,000 for companies with 250 or more employees. The total amount of aid is prorated if the duration of the contract is less than one year or if the contract is ended during the first year. It is paid only for an apprenticeship contract preparing a diploma or professional qualification up to Master’s level (bac +5 / level 7 of the national framework of professional qualifications).	– Aide forfaitaire à l’employeur (AFE) for the recruitment of a jobseeker aged 26 or over: up to €2,000; – Aide de l’Etat for those aged 45 and over: up to an additional €2,000, which can be combined with the AFE; – Aid for people with disabilities: up to €3,000 via Agefiph.
Employer contribution to funding training	Compulsory flat-rate contribution of €750 for contracts for a degree of Bac+3 or more (level 6) 20% reduction in the cost of the course if more than 80% of it is run remotely	No compulsory flat-rate contribution to training costs
Training schedule	At least 25% of the total duration of the contract	150 hours minimum and between 15% and 25% of the total duration of the contract
Company target audience	Young people with no professional experience or just starting out in a particular area	Adults or young people undergoing retraining or looking for further qualifications

An online simulator is available on the government website, which you can access using this link to determine the cost of hiring. It is important to note that these costs may vary depending on the applicable collective agreement.

When to Choose a Professionalisation Contract?

In the work-study landscape, two main options coexist: the apprenticeship contract and the professionalisation contract. While they share the same principle—combining theory and practice—their frameworks, target groups and financial outcomes differ greatly.

The apprenticeship contract is best suited to young people aged 16 to 29 and prepares them for a recognized diploma or title. It benefits employers through lower wage costs and generous aid, particularly in the first year, this contract represents a cost-effective solution for companies wishing to train a young person over several years. However, it also implies a stricter framework, longer duration, and close monitoring by a training centre.

By contrast, the professionalisation contract stands out for its flexibility. Open to a wider audience, with no age limit, it can be used to take on jobseekers and adults undergoing career transition. Although the wage cost is higher, due to lower state aid, it is an effective lever for targeted, short-term recruitment. It will enable employees to acquire specific, practical skills that are directly in line with the company’s needs, thereby boosting its competitiveness by providing rapid access to trained, high-performance talent.

In short, the apprenticeship contract is ideal for a long-term investment in a young profile, while the professionalisation contract is a flexible and strategic solution for meeting immediate skills needs.

Conclusion

For companies, the professionalisation contract represents a strategic opportunity, combining flexibility and financial advantages, particularly with the new measures for 2025. It is a way of training talented people quickly, while meeting immediate needs for specific skills.

It should also be noted that the reduction in social contributions often promoted as part of the apprenticeship contract only really has an impact on the employee’s net pay, without significantly reducing the total cost of salary for the company. This situation can lead to disparities in the net pay of the company’s employees and can cause difficulties when the employee is recruited on an open-ended contract at the end of the apprenticeship contract, particularly when it is a question of maintaining an equivalent level of pay or responding to a request from the employee for higher net pay.

In view of the rising cost of apprenticeships, particularly for contracts aimed at diplomas at Bac+3 level and above, the professionalisation contract can become a more advantageous alternative. Less restrictive and better suited to short-term recruitment, it enables companies to control their costs while benefiting from qualified profiles. In short, this contract offers employers an effective solution for boosting their competitiveness, while benefiting from attractive financial incentives.

If you need more details or any support on this topic, feel free to contact our Payroll Department!

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L’article Professionalisation Contracts and Hiring Incentives est apparu en premier sur FBA - French Business Advice.

Hiring Underage Employees During the Summer Period

Claire Molina — Tue, 24 Jun 2025 10:18:28 +0000

Article of 02/06/2023 updated on 24/06/2025

Are you planning to hire an underage employee during the summer?

Here are the main rules to follow!

I – Minimum Working Age

A – General principles

1. 1. 1. As a general rule, a minor must be at least 16 years old to be employed (Articles L. 4153-1 et seq. of the Labour Code).
    2. School holiday exception: It is possible to employ a minor from the age of 14 during school holidays, provided stricter conditions are met (Article L. 4153-5).

B – Penalty for non-compliance with minimum age

1. 1. 1. Fine of €1,500 for an individual employer.
    2. Fine of €7,500 for a legal entity (company, association, etc.).

II – Pre-employment Formalities

A – Necessary authorizations

- - Minors under 16 (14–16 years old)
    - Mandatory written parental consent: one of the legal representatives (father, mother or legal tutor) must provide written authorisation for the employer to take on the minor.
    - Labour inspector’s authorisation:
      > To be requested at least 15 days before the expected date of hire.
      > The Labour Inspectorate checks that health, safety and management conditions are satisfactory.
  - Minors aged 16–18
    - Parental consent optional: if the minor is aged 16 or over, parental authorisation is no longer strictly required under the Labour Code, but is still strongly recommended to avoid any disputes (and is sometimes required under collective agreements).
    - No need for labour inspector’s authorisation for 16-18 year-olds, except in special cases.

B – Medical Check-up

Obligation: before taking up the position, the minor must undergo an information and prevention visit to the occupational health service (occupational medicine).

- For under-16s, this visit must be scheduled before they start work, even for short-term contracts.
- For 16-18 year-olds, the medical check-up is also compulsory before they are assigned to work, and is then repeated at intervals set by the occupational health department (generally every one or two years).

⇒ Tips

Plan your visit well in advance: the summer period is a busy one for occupational health services, so make an appointment as soon as possible.
Keep your proof of visit in a safe place so that you can submit it in the event of an inspection by the Labour Inspection Department.

III – Working Conditions and Health & Safety

A – Prohibition on exposing minors to risks

Prohibited work for all minors (article D. 4163-1 of the French Labour Code):

- Exposure to hazardous substances, intense noise, or radiation…
- Use of dangerous machinery or tools (syrups, presses, turbines, etc.), sharp or motorised tools (excluding activities under special supervision).
- Heavy manual handling.
- Working in hyperbaric environments (chambers) or at depth (underground).
- Work in a confined atmosphere.
- Work on building and civil engineering sites (except in the case of very restricted exemptions).

B – Working Time and Daily Rest

Rules vary by age group:

Minor’s age	Maximum daily duration	Maximum weekly duration	Minimum daily rest period	Prohibited times
Under 16s (14-16 years)	7 hours a day	35 hours	12 onsecutive hours	No work before 7 a.m. or after 9 p.m.
16-18 fully years	8 hours a day	35 hours	12 onsecutive hours	No work before 6 a.m. or after 10 p.m.

- - Minors aged 14-16 (school holiday period)

1. 1. - Maximum 7 hours of actual work per day.
    - Maximum 35 hours per week (calculated over a single calendar week).
    - Prohibition on working before 7 a.m. and after 9 p.m.
    - A break of at least 30 minutes for every 4 consecutive hours worked.

- - 16-18 year old minors

- - - Maximum 8 hours of effective work per day.
    - Maximum 35 hours per week.
    - It is forbidden to work before 6 a.m. and after 10 p.m., except by special dispensation (e.g. in the agricultural and performing arts sectors), but these dispensations are subject to strict conditions.
    - Break of at least 30 minutes for every 4 hours 30 minutes of consecutive work.
  - Special warning: weekly rest period

Young people must have two consecutive days off (generally Sunday and one other day), unless there is a specific exemption for certain sectors (hospitality industry, etc.).

IV – Minors’ compensation

Unless there is a more favourable collective agreement, minors’ wages are determined as a percentage of the minimum wage.

Rates vary according to age and seniority:

Age category	Seniority in the company	Percentage of the SMIC (minimum wage in France)
Under 17 years	Up to 6 months	80 %
	More than 6 months	90 %
17-18 fully years	Up to 6 months	90 %
	More than 6 months	100 %

V – Specific conditions depending on the sector of activity

Certain activities subject to collective agreements or specific regulations require additional rules:

A – Hospitality (HCR collective agreement)

- - - Extended working hours (ending at 11 p.m. possible for over-16s, subject to conditions).
    - Possible exceptions to the ban on Sunday working, particularly for beach establishments, hotels, etc.

B – Agriculture

- - - Possibility of allowing certain minors (from the age of 14) to work earlier in agricultural activities during the harvest, with prefectoral authorisation and compliance with stricter health and safety conditions.
    - Staggered working hours linked to the agricultural seasons (early harvest, outdoor work, etc.).

C – Retail

- - - 16-18 year olds can work until 10 p.m. if the store closes at that time (subject to prefect approval).

VI – Penalties for non-compliance

Failure to comply with the rules governing the employment of minors may give rise to the following sanctions:

A – Penal and administrative sanctions

- - - Fines
    - Possibility of administrative closure of the establishment for illegal employment

There are many rules to be complied with regarding the recruitment and employment of minors, and failure to do so may result in penalties.

Reach out to Claire Molina, Payroll and Social Security Manager at French Business Advice, to help you with your procedures.

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Understanding Bank Holidays in France

Claire Molina — Sun, 15 Jun 2025 16:13:43 +0000

Bank holidays play an essential role in the organisation of work in France. They offer employees valuable time off and provide an opportunity to celebrate historical, religious or civic events. For employers, however, they represent a strategic issue in terms of human resources management, productivity, and compliance with employment law.

Understanding how bank holidays work is vital to avoiding mistakes that could result in sanctions, while maintaining a balance between economic imperatives and employee well-being.

What are employers’ rights and obligations regarding bank holidays? How much flexibility do they have in managing them?

This article offers clear answers to help businesses plan and manage these specific periods efficiently.

I – List of Bank Holidays in France

France counts 11 legal bank holidays, which are as follows:

January 1^st New Year’s Day
Easter Monday Variable date
May 1^st Labour Day
May 8^th Victory in Europe Day
Ascension Day Variable date (Thursday, 40 days after Easter)
Whit Monday (Pentecost Monday) Variable date
July 14^th Bastille Day (National Day)
August 15^th Assumption of Mary
November 1^st All Saints’ Day
November 11^th Armistice Day (1918)
December 25^th Christmas Day

Some regions benefit from additional bank holidays:

Alsace-Moselle:
- Good Friday (only in municipalities with a Protestant church or mixed congregation)
- December 26^th St Étienne’s Day
Overseas territories (Guadeloupe, Martinique, French Guiana, Réunion, Mayotte, Saint Martin, Saint Barthélemy):
- Commemoration Day of the Abolition of Slavery (date varies by territory)

II – Legal Status of Bank Holidays

Only May 1^st is a compulsory paid day off for all employees, except in sectors where work cannot be interrupted (e.g., hospitals, transport, emergency services).

The 10 others bank holidays are not automatically days off. Their status depends on:

The applicable collective agreement within the company
The employer’s decision, who may choose to grant a day off or require work

If a bank holiday is granted as a day off, it must be paid for employees with at least three months’ seniority:

If it falls on a normal working day, the employee is entitled to their salary
If it falls on a non-working day, there is no entitlement to extra pay or time off
If an employee works on a bank holiday, a pay supplement may be provided under the collective agreement
If May 1^st is worked, it must be paid at least double rate

III – May 1^st: A Strict Obligation

Labour Day (May 1^st) has a unique legal status in France. Unlike other bank holidays, it is a mandatory paid day off for all employees, according to Articles L.3133-4 and following of the French Labour Code.

No employee may be required to work on May 1^st, except in sectors where work cannot be suspended (e.g., hospitals, transport, essential services). There is no predefined list of such sectors; decisions are made case-by-case depending on necessity.

The opening of a shop or establishment is not, in itself, sufficient justification for asking employees to work.

If a business opens, employees may not be involved in operations. Activity must be carried out by:

The business owner or legal representative
Non-salaried partners
Spouses, civil partners or family members, within legal limits

IV – The Solidarity Day

The Solidarity Day was introduced in 2004 to help fund services supporting the autonomy of elderly and disabled people. It consists of one unpaid day of work for employees, to offset the employer autonomy solidarity contribution (CSA), which represents 0.3% of gross payroll, paid monthly to URSSAF.

All private sector employees are required to complete this day.

Originally set on Whit Monday, since 2008 companies may choose a different date. Some continue to use Whit Monday, others spread the hours over the year, or select another bank holiday.

This additional work time must:

Correspond to a maximum of 7 hours for a full-time employee
Be prorated for part-time employees based on their contract

If the employer selects a bank holiday for the Solidarity Day, employees may request to take paid leave or use a reduction of working time (RTT) day. However, the employer may refuse this request if work organisation does not allow it.

V – Economic, Social and Cultural Impact of Bank Holidays

Bank holidays have a direct impact on the economy and company productivity. Some sectors (e.g., industry, construction) may face output losses, while others (e.g., tourism, retail) may benefit from increased activity.

Beyond economics, bank holidays are deeply embedded in French culture. They commemorate important historical events (e.g., 14 July, 8 May) and religious observances (e.g., Easter, Christmas).

These days are also valuable for rest and family time, helping to strengthen social bonds and improve overall well-being.

For employers, it’s crucial to anticipate the impact of bank holidays on operations and to communicate clearly with staff about which days are worked or off. Good planning helps maintain productivity while respecting employees’ expectations.

Conclusion

Bank holidays are an integral part of work organisation in France, with significant effects on team management and business operations.

While May 1^st is the only legally mandated paid day off, the treatment of other holidays depends on collective agreements and employer discretion.

To avoid confusion and disputes, employers must inform employees clearly about:

Bank holiday arrangements
Pay entitlements
How the Solidarity Day is handled

Transparent communication ensures smooth operations and stronger trust within the company.

If you have any further questions or need additional guidance, feel free to contact us — we’re here to help!

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2025 Apprenticeship Updates

FBA team — Thu, 12 Jun 2025 15:45:39 +0000

Apprenticeship funding is evolving, and several key measures have already come into effect or will take effect as of July 1, 2025. These adjustments have a direct impact on the cost and administrative management of your apprenticeship contracts.

Here is a clear summary to help you anticipate!

> What has already changed

Reduction of the single aid (since February 24, 2025)

Amount of the single aid for employers with fewer than 250 employees:
➤ €6,000 €5,000

Decrease in social contribution exemptions (since March 1, 2025)

The exemption threshold for social charges on apprentice wages has been lowered from 79% to 50%.

Example: 26-year-old apprentice paid 100% of the minimum wage (SMIC)

> From July 1, 2025: New measures

Flat contribution for Bac+3 level and above

Amount: €750 per contract
Concerned: Apprentices in training at Bac+3 level or higher
Payment: by the employer directly to the training center (CFA)

A measure to better target labor market needs.

Daily funding calculation

Removal of the “month started = month due” principle
Funding calculated based on actual training days

More precise administrative monitoring will be required.

Reduction for mostly remote training

If more than 80% of the training is remote
➤ 20% reduction in funding

Final payment conditional on contract completion

10% of funding will be paid only if the contract is fully completed

Goal: avoid overpayments in case of early termination

Enhanced security of the apprentice’s pathway

Strengthened support before and during the contract
Mandatory active monitoring by employer and CFA
3-month deadline to sign a contract after training starts

A more structured framework to prevent pathway disruptions

We are here to help you to better understand these changes and optimize the management of your apprenticeship contracts. Contact us now!

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Clarify, Protect, Unite – The importance of company rules of procedure

Claire Molina — Thu, 15 May 2025 08:31:29 +0000

What are company rules of procedure?

The company’s rules and procedures are an official document drawn up by the employer, specifying the rules applicable within the company. They define the rights, obligations and behavior of employees in the context of their work. This document is essential for maintaining a clear, structured framework for professional relations.

What’s it for?

Rules of procedure have several key functions:

Defining rules of behaviour: It can specify expected behaviors, remind employees of their obligation to respect work schedules and the work organization set by the company’s management, as well as safety instructions.
Setting disciplinary measures: It describes the types of sanctions applicable in the event of non-compliance with the rules (e.g. warnings or dismissals).
Ensuring legal compliance: It includes measures to prevent harassment and discrimination, as well as health and safety in the workplace.
Prevent disputes: By clarifying the rules, it reduces the risk of misunderstandings and disputes.

Is it mandatory?

In France, rules of procedure are mandatory for companies with at least 50 employees. They must be drawn up in compliance with the requirements of the French Labor Code, and submitted to employee representatives for review. The employer must consult the Comité Social Economique (CSE) and submit the rules to it for its opinion. The rules of procedure apply even if the CSE has not approved them. On the other hand, if the CSE is not properly involved, the rules of procedure cannot be used against employees.

For small companies with fewer than 50 employees, this is not compulsory, but it is strongly recommended in order to establish a clear framework. They must be drawn up under the same conditions as in companies with at least 50 employees.

It applies to all company employees, whether hired before or after its implementation.

Trainees, temporary workers and subcontractors are subject to the user company’s rules and regulations concerning health, safety and general discipline. They are not, however, subject to the provisions concerning the nature and scale of sanctions and disciplinary procedure.

What the Rules of Procedure can offer to your small business

Although not mandatory for companies with fewer than 50 employees, having a set of internal rules can bring a number of significant benefits:

1. Clarification of expectations

In a small organization, it’s easy to assume that everyone is on the same page. However, a set of internal rules clearly defines rules, responsibilities and expected behavior. This avoids misunderstandings and establishes a common framework, even in a small team.

1. Dispute prevention

Internal regulations act as a preventive tool, specifying how to handle tricky situations (absences, lateness, behavior at work, etc.). This reduces tensions and prevents minor conflicts from getting out of hand in the absence of clear rules.

1. Legal protection

Even a small company is not free from disputes. Internal regulations that comply with employment law can serve as a protective measure in the event of disputes. For example, they may include provisions against harassment or discrimination, demonstrating the employer’s dedication to legal and ethical standards.

1. Strengthening corporate culture

Internal rules can reflect the company’s values and mission, strengthening the group’s identity and unity. This helps create a harmonious and productive work environment, where every employee feels involved in a common project.

1. Growth support

If the company is growing or hiring more employees, having a set of internal rules from the beginning ensures a smooth transition. This avoids having to improvise rules as the organisation grows.

What should it contain?

When drawing up rules and procedures, it is important to comply with legal requirements (article L.1321-1 of the French Labor Code).

It is a written document in which the employer sets out exclusively:

Measures for applying health and safety regulations in the company or establishment, in particular the instructions provided for in Article L. 4122-1;
The conditions under which employees may be called upon to participate, at the employer’s request, in the re-establishment of working conditions that protect the health and safety of employees, where these appear to have been compromised;
General and permanent rules on discipline, including the nature and scale of sanctions that may be imposed by the employer.

The internal regulations also contain the following information:

Employees’ rights of defence in disciplinary proceedings (defined in articles L. 1332-1 to L. 1332-3);
Harassment, sexual harassment and sexist behaviour;
Protection of whistleblowers (Chapter II of Act no. 2016-1691 of December 9, 2016).

Rules of procedure may not contain the following clauses:

Clause contrary to laws, regulations or provisions of collective agreements applicable in the company or establishment, for example, breach of the right to strike;
Clause restricting individual or collective freedoms that is not justified or proportionate to the aim pursued;
Discriminatory clause (linked, for example, to the employee’s ethnic or religious background, state of health, disability or gender).

The internal regulations must be drafted in French and may be supported by translations into one or more foreign languages.

What are the formalities to be complied with?

The employer must complete the following formalities:

Submission of rules of procedure to the clerk’s office of the labour tribunal to which the company or establishment belongs;
Forwarded to the labour inspection authority in 2 copies, along with the opinion of the works committee (CSE), if applicable;
Advertising, by any means (posters, intranet, etc.), to all persons with access to the workplace or premises where the employee is hired.

These formalities also apply in the event of modification of the rules of procedure or withdrawal of clauses therein.

The rules of procedure indicate the date from which they apply within the company.

This date must be at least 1 month after the filing and distribution formalities have been completed.

The date on which the last of the advertising and filing formalities was completed determines the starting point of this minimum 1-month period.

Rules and regulations, even for companies with fewer than 50 employees, are an essential tool for establishing clear rules on work organisation, rights and duties.

They define expected behavior, regulate working hours, absences and breaks, and lay down rules for the use of work tools. It helps to prevent conflicts, ensure fairness between employees and guarantee a working environment that complies with the law, especially in terms of safety and the fight against discrimination or harassment.

Although it is not mandatory, it strengthens corporate unity and prepares the company for future growth.

Don’t hesitate to contact us if you need more information!

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Main provisions included in the Social Security Financing Law for 2025

FBA team — Wed, 30 Apr 2025 14:01:06 +0000

The Social Security Financing Act (LFSS) for 2025 introduces significant reforms, such as a reduction in employer contribution exemptions. These provisions reflect the legislature’s desire to control social and health spending while adapting financing mechanisms to current challenges.

This law is presented in three main points:

Measures relating to payroll contributions
Measures relating to self-employed workers
Some miscellaneous measures

It should be noted that we present below only the provisions that mainly concern companies.

I – Measures relating to payroll contributions

Apprentice pay: reduction in exemptions from employee contributions and CSG/CRDS

For apprenticeship contracts entered into on or after March 1^st 2025, the exemption limit for employee contributions is reduced from 79% to 50% of the minimum wage (SMIC). The portion of apprentices’ remuneration exceeding 50% of the minimum wage is now subject to CSG/CRDS.

General reductions in employer contributions

The Social Security Financing Act organizes the merger in two stages (2025 then 2026) of general reductions in employer contributions.

As of January 1^st 2025, the eligibility ceilings for rate reductions on employer health insurance and family allowance contributions are reduced as follows:

reduction in the rate of employer health insurance contributions on salaries not exceeding 2.25 times the minimum wage (instead of 2.5 times the minimum wage);
reduction in the rate of employers family allowance contributions on salaries not exceeding 3.3 times the minimum wage (instead of 3.5 times the minimum wage).

From 2026, reconfiguration of the reduction in employer contributions (RGCP) and elimination of the two other general reductions.

In addition, for contributions and payments due for periods of activity starting from 1^st January 2025, value sharing premiums (PPV) are included in the calculation of the RGCP, both in terms of the coefficient calculation formula and the reduction basis (even for PPV amounts exempt from contributions).

Increase in the employer contribution due for free share allocations (AGA)

Under certain conditions, joint-stock companies may grant bonus shares to their employees or managers, or to those of their affiliated companies, under preferential social and tax regimes.

The rate of the specific employer contribution due for AGA will be increased from 20% to 30% as of March 1^st 2025.

Agricultural sector: sustainability, strengthening and extension of the TO-DE exemption

Farmers hiring casual workers (TO) on fixed-term contracts may, under certain conditions, benefit from a monthly exemption from employer contributions. The maximum duration of the exemption is set at 119 working days, whether consecutive or not, for the same employee and per calendar year. Under certain conditions, job seekers (DE) are considered casual workers when they are recruited under a permanent contract by a group of employers carrying out one of the eligible activities.

The law extends the TO-DE exemption, which was due to end in December 2025. In addition, the exemption ceiling is raised from 1.20 to 1.25 times the minimum wage, retroactively from May 1^st 2024.

Finally, the TO-DE exemption is extended to:

agricultural equipment cooperatives (CUMA);
agricultural cooperatives and their unions, for fruit and vegetable packaging activities.

Young innovative companies (JEI)

Companies with JEI status can, subject to meeting several conditions, benefit from an exemption from employer social security and family allowance contributions.

As of March 1^st 2025, the law raises the research expenditure intensity threshold to a minimum of 20% (instead of 15%) for eligibility for JEI status.

II – Measures relating to self-employed workers

Provisions relating to the unified social security contribution base for the self-employed

The 2024 Social Security Act (LFSS) provides for a reform of social security contributions payable by non-agricultural self-employed workers not covered by the micro-social security scheme. Social security contributions are calculated on a single simplified basis corresponding to the self-employed worker’s professional income, from which professional expenses, excluding social security contributions, are deducted, and reduced by a rate set at 26%. This 26% reduction cannot be less than 1.76% nor more than 130% of the annual social security ceiling.

Entry into force: The reform will apply from the regularization applied to contributions due for the 2025 financial year. In practice, it will therefore be implemented during the regularization of these contributions in 2026. Consequently, the provisional contributions for 2025 should be calculated on the basis of the provisions prior to the reform of the contributions base.

Provisions concerning “auto-entrepreneurs”

Gradual increase in the contribution rate for liberal self-employed workers covered by the independent regime: The overall rate is raised to 23.10% on July 1^st 2024, then to 24.60% in 2025 and to 26.10% in 2026.
Towards mandatory collection of contributions by digital platforms: The 2024 Social Security Finance Act (LFSS) has established a mandatory system for digital platforms to declare and withhold social security contributions from self-employed workers covered by the micro-social security scheme who operate through their intermediary. Thus, by 2027, their social security contributions will be collected directly by the networking platforms.
Clarification: This obligation also concerns platform users who have chosen to be affiliated with the general scheme (short-term furnished rentals and rentals of movable property).
The 2024 LFSS provided that these provisions will come into force from January 1^st 2027. It also provided that this system could, however, be gradually applicable from January 1^st 2026 to platform operators who meet certain criteria to be provided for by decree (according to the 2025 LFSS).

Exemption from retirement contributions for certain physicians in underpopulated areas

Physicians who combine full employment and retirement and practice in an area characterized by insufficient healthcare provision, are exempt (based on their professional activity as physicians) from retirement insurance contributions due on income earned in 2025.

To benefit from this exemption, their annual non-salaried professional income must be below a certain amount (set by decree). Furthermore, physicians benefiting from this contribution exemption will not accrue any basic pension rights for a second pension for the periods in question.

These provisions will only apply to physicians who have drawn their personal retirement pension before March 1^st 2025.

III – Some miscellaneous measures

Among the various measures to be noted, we cite below:

Reform of compensation for functional damage linked to work accidents and occupational diseases: From a date to be set by decree (no later than June 1^st 2025), the permanent disability pension in the event of an accidental injury (AT/MP) will compensate not only for the professional deficit, but also for the functional deficit. These increases will apply in the same way in the event of inexcusable fault on the part of the employer.
Change in the rules for determining “social security” staff numbers from January 1^st 2025 concerning employees made available by a group of employers: From now on, employees made available to a company are no longer taken into account in the group’s “social security” workforce (except for AT/MP pricing). Companies hosting employees made available by a group of employers therefore continue not to include these employees in their “social security” workforce. Thus, as of January 1^st 2025, employees made available by a group of employers are neither counted in the workforce of the group (except for AT/MP pricing) nor in that of the user company.

Certificate of life to receive a retirement pension: To receive a retirement pension, insured persons residing abroad must provide their pension fund with a certificate of life every year. In practice, the insured must have this document completed by the French consulate or the relevant local authorities.
The law summarizes the methods of proving this certificate of life (in addition to the possibility of using biometric recognition):
- an automatic exchange of data between the pension-paying organization and a civil status agency in the beneficiary’s country of residence;
- an on-site inspection by a trusted third-party organization;
- the provision of a certificate of existence endorsed by the consular service of the beneficiary’s country of residence.

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France Travail Reform | What changed on April 1, 2025, for business founders and business buyers

FBA team — Fri, 04 Apr 2025 12:54:32 +0000

Here are the main regulatory changes, taking account of the last France Travail reform:

Capping of aid at 60% of rights

Regardless of your choice (ACRE or maintaining ARE)
With preservation of the remaining rights

ARCE (Aide à la Reprise et à la Création d’Entreprise)

Allows a jobseeker eligible for ARE (Allocation d’aide au Retour à l’Emploi) to receive in capital 60% of the remaining amount of their unemployment rights (compared to 45% before July 2023).

Payment in two installments:

The first payment (50% of the aid) is made once all eligibility conditions are met (including obtaining ACRE).
The second payment(the remaining 50%) paid 6 months later, provided the company is still active at that time.

If a full-time permanent employment contract (CDI) is taken up in the meantime, the second payment is forfeited.

Possibility of resuming ARE rights after ARCE:

In case of project failure, the jobseeker can reopen their residual ARE rights. Unused rights to benefits (the remaining 40% of the capital) remain available for 3 years (extended by the initial rights period) from the initial opening of rights.

Partial maintenance of ARE in case of business creation/Takeover

An entrepreneur can choose to maintain the payment of their unemployment benefit (ARE) while creating their business.

Unlike ARCE, it is not necessary to obtain ACRE to combine ARE and creation income.

REMINDER: Since 01/01/2025, the terms of monthly payments vary depending on the legal and social status of the entrepreneur.

For assimilated employee directors (e.g., SAS, minority managers of SARL):

With remuneration: monthly information and adjustments;
Without remuneration (supported by the minutes of the general assembly): full maintenance of ARE.

For self-employed directors (e.g., sole proprietors, majority managers of SARL):

Receipt of a flat-rate monthly allowance of up to 70% of ARE;
Annual regularization retroactively upon receipt of supporting documents (submission of income declaration – Cerfa 2042).

_______________________

Glossary:

ARCE Aide à la Reprise et à la Création d’Entreprise

ACRE Aide aux Créateurs et Repreneurs d’Entreprise

ARE Allocation d’aide au Retour à l’Emploi

_______________________

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2025 aid for hiring an apprentice

FBA team — Thu, 13 Mar 2025 10:15:01 +0000

How much aid can you claim for hiring an apprentice in 2025?

Change in 2025: Lower amounts of aid depending on the number of employees in the company and regardless of the level of diploma prepared.

I – Aid amounts

II – Details of the conditions for obtaining aid

No later than 6 months after conclusion of the apprenticeship contract: transmission to the skills operator and submission to the Minister responsible for vocational training.
You must not already have benefited from hiring aid for the same apprentice and the same vocational certification.

Don’t hesitate to contact our payroll manager, who will be able to answer all your questions!

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Compliance with founding acts in terms of provident schemes and health insurance

FBA team — Mon, 03 Feb 2025 15:08:59 +0000

– Amendment of objective categories –

Employers, are you up to date with your obligations regarding provident schemes and health insurance?
Check your agreements or Unilateral Employer Decision (DUE)!

We remind you that companies that have implemented collective provident and health insurance schemes must ensure their compliance with current regulations. This includes defining the objective categories of employees covered by these schemes.

Indeed, non-compliance could lead to the questioning of the social security exemptions relating to these schemes, both for the employer and the employees.

With the merger of the AGIRC-ARRCO schemes, the objective categories in terms of complementary social protection based on the executive/non-executive distinction, and on the salary levels of the above schemes, have become obsolete.

The founding acts (collective agreements, DUE) of a health and/or provident cover scheme must now relate to the national agreement of November 17^th 2017.

Does your company comply with these requirements?

Objective categories to modify

The distinction between executive and non-executive referring to the 1947 CCN, AGIRC, or ARRCO, should no longer appear in the act that establishes complementary social protection in your company. It must be replaced by the distinction resulting from belonging or not to articles 2.1 and 2.2 of the national interprofessional agreement of November 17, 2017, relating to executive provident schemes.

In the same way, the distinction made based on brackets A and B or brackets 1, 2, and 3 should be replaced by reference to a salary threshold equal to 1, 2, 3, 4, or 8 PASS.

Compliance procedures

If, after reviewing the act that establishes complementary social protection within your company, you are concerned by the obligation to comply, you must amend your legal acts. The compliance procedures vary depending on the founding act within your company:

Sanctions incurred

In the event of non-compliance, the contribution you pay to finance the health insurance and/or provident scheme should be subject to Social Security contributions, failing to meet the collective nature which is one of the conditions for its exemption.

> Our Support

Our firm is at your disposal to assist you in:

Analyzing existing health and provident schemes in your company;
Reviewing and ensuring compliance of founding acts;
Drafting or amending necessary legal documents;
Communicating with your employees to ensure smooth implementation.

Compliance Schedule

We recommend proceeding with this compliance as soon as possible to avoid any risk of inspection or sanction.

For any questions or to initiate this process, do not hesitate to contact Nathalie Ferrère, head of the HR & Social Law department at French Business Advice, for personalized support.

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New value sharing obligation in companies with at least 11 employees

FBA team — Wed, 29 Jan 2025 14:09:18 +0000

Employers (excluding sole proprietorships) are subject to a new value-sharing obligation that applies to fiscal years beginning on or after January 1, 2025.

These provisions are experimental and will last for five years.

Which employers are concerned?

On one hand, the main companies concerned are those with at least 11 employees that have achieved a net fiscal profit of at least 1% of their turnover for three consecutive fiscal years.

This refers to the “Social Security” workforce (average annual workforce calculated as of December 31 of the previous year). The rule of neutralizing the crossing of the threshold for five consecutive years does not apply.

On the other hand, companies with at least 11 employees operating in the social and solidarity economy sector are also concerned if an extended branch agreement allows it and if they have achieved a surplus result of at least 1% of their revenues for three consecutive fiscal years.

This includes cooperatives, mutual societies, foundations, or associations governed by the law of July 1, 1901, or, where applicable, by the local Civil Code applicable to the departments of Bas-Rhin, Haut-Rhin, and Moselle.

What is the content of the new obligation?

Companies meeting the conditions related to workforce and net fiscal profit (or surplus result) must implement one of the following mechanisms for the following fiscal year:

A profit-sharing or incentive scheme;
A contribution to the employee savings plan;
A payment of the value-sharing bonus (PPV).

Companies that implement and apply one of these mechanisms for the fiscal year in question are deemed to comply with the legal obligation.

When does it come into effect?

The new value-sharing obligation applies to fiscal years beginning on or after January 1, 2025.

For application in 2025, the previous three fiscal years (2022, 2023, and 2024) are taken into account to assess compliance with the condition related to achieving net fiscal profit (or surplus result).

**Feel free to contact Nathalie Ferrère, head of the HR & Social Law department at French Business Advice, for personalized support.**

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Archives des Staff & Social field - FBA - French Business Advice

Professionalisation Contracts and Hiring Incentives

What is a Professionalisation Contract?

Hiring Incentives in 2025

1 – The “Aide forfaitaire à l’employeur” (AFE) for Hiring Job Seekers Aged 26 and Over

2 – State Aid for Hiring Job Seekers Aged 45 and Over

3 – Aid for Hiring People with Disabilities

Professionalisation vs Apprenticeship Contract

When to Choose a Professionalisation Contract?

Conclusion

Hiring Underage Employees During the Summer Period

I – Minimum Working Age

A – General principles

B – Penalty for non-compliance with minimum age

II – Pre-employment Formalities

A – Necessary authorizations

Minors under 16 (14–16 years old)

Minors aged 16–18

B – Medical Check-up

⇒ Tips

III – Working Conditions and Health & Safety

A – Prohibition on exposing minors to risks

B – Working Time and Daily Rest

Minors aged 14-16 (school holiday period)

16-18 year old minors

Special warning: weekly rest period

IV – Minors’ compensation

V – Specific conditions depending on the sector of activity

A – Hospitality (HCR collective agreement)

B – Agriculture

C – Retail

VI – Penalties for non-compliance

A – Penal and administrative sanctions

Understanding Bank Holidays in France

I – List of Bank Holidays in France

II – Legal Status of Bank Holidays

III – May 1st: A Strict Obligation

IV – The Solidarity Day

V – Economic, Social and Cultural Impact of Bank Holidays

Conclusion

2025 Apprenticeship Updates

> What has already changed

> From July 1, 2025: New measures

Clarify, Protect, Unite – The importance of company rules of procedure

What are company rules of procedure?

What’s it for?

Is it mandatory?

What the Rules of Procedure can offer to your small business

Clarification of expectations

Dispute prevention

Legal protection

Strengthening corporate culture

Growth support

What should it contain?

What are the formalities to be complied with?

Main provisions included in the Social Security Financing Law for 2025

I – Measures relating to payroll contributions

Apprentice pay: reduction in exemptions from employee contributions and CSG/CRDS

General reductions in employer contributions

Increase in the employer contribution due for free share allocations (AGA)

Agricultural sector: sustainability, strengthening and extension of the TO-DE exemption

Young innovative companies (JEI)

II – Measures relating to self-employed workers

Provisions relating to the unified social security contribution base for the self-employed

Provisions concerning “auto-entrepreneurs”

Exemption from retirement contributions for certain physicians in underpopulated areas

III – Some miscellaneous measures

France Travail Reform | What changed on April 1, 2025, for business founders and business buyers

Capping of aid at 60% of rights

ARCE (Aide à la Reprise et à la Création d’Entreprise)

Partial maintenance of ARE in case of business creation/Takeover

2025 aid for hiring an apprentice

How much aid can you claim for hiring an apprentice in 2025?

I – Aid amounts

II – Details of the conditions for obtaining aid

Compliance with founding acts in terms of provident schemes and health insurance

– Amendment of objective categories –

Employers, are you up to date with your obligations regarding provident schemes and health insurance?Check your agreements or Unilateral Employer Decision (DUE)!

Objective categories to modify

Compliance procedures

III – May 1^st: A Strict Obligation

Employers, are you up to date with your obligations regarding provident schemes and health insurance?
Check your agreements or Unilateral Employer Decision (DUE)!

**Feel free to contact Nathalie Ferrère, head of the HR & Social Law department at French Business Advice, for personalized support.**