Generic EOR and portage salarial: two models, only one recognised under French law
Two solutions exist for hiring in France without a local entity : portage salarial/wag portage and EOR-Employer of Record. Only one is explicitly governed by the French Labour Code.
The Employer of Record (EOR) — a global model with no legal footing in France
An Employer of Record is an international employment model in which a third-party provider acts as the legal employer of a worker, on behalf of a client company.
The model is widely used around the world: it allows a company to hire in a foreign country without opening a local subsidiary. The EOR provider manages payroll, tax filings, social contributions, and employment contracts. The worker operates under the operational direction of the client company, but is formally attached to the EOR.
The model is attractive in principle.
In practice, its application in France raises a fundamental legal problem. Article L.8241-1 of the French Labour Code explicitly prohibits any profit-making operation whose sole purpose is the lending of labour — a provision known as the prohibition of unlawful lending of labour (« prêt illicite de main-d’œuvre »). International EOR platforms — Deel, Remote, Oyster, Velocity Global — hold no specific legal status in France that authorises them to carry out this activity.
They operate in a legal grey area that exposes their clients to serious consequences:
- reclassification of the consultant as a permanent employee (CDI),
- back-payment of unpaid URSSAF contributions,
- labour tribunal claims, and
- potential criminal liability for the company’s directors.
Under Article L.8243-1 of the French Labour Code, unlawful lending of labour is a criminal offence punishable by up to two years’ imprisonment and a fine of €30,000.
A further risk, often underestimated, concerns contract termination. Under a standard EOR arrangement, ending an employment relationship in France requires either a formal redundancy procedure or a mutually agreed termination (rupture conventionnelle) — which requires the worker’s consent. If the worker refuses the proposed terms, the client company can face a prolonged negotiation, significant financial settlement demands, and legal proceedings before a French labour tribunal (conseil de prud’hommes).
Portage salarial (wage portage) — the only legally recognised framework in France
Portage salarial is an employment arrangement created and codified by French law. It is governed by Articles L.1254-1 to L.1254-31 of the French Labour Code and regulated by a dedicated national collective bargaining agreement (Convention Collective IDCC 3219, in force since 2017).
It is t an adaptation of the EOR model to the French context: it is an autonomous employment framework with its own rules, protections, and obligations — specifically designed for the French legal environment.
The structure is tripartite and clearly defined. The portage company — such as Didaxis — is the legal employer of the consultant. It signs two separate contracts: an employment contract with the consultant (salarié porté — the « carried employee »), and a commercial service agreement with the client company. The client company is not an employer.
It benefits from the consultant’s intellectual work, billed through the portage company under a straightforward B2B commercial arrangement. The client company owes no URSSAF registration, no payroll filings, and no employer social contributions. When the assignment ends, closing the commercial agreement is sufficient to bring the employment contract to a close — with no redundancy procedure and no labour tribunal risk for the client.
Portage salarial applies exclusively to intellectual and advisory services:
- IT and software development, project management,
- business consulting, financial analysis,
- marketing and communications,
- engineering consulting, training and
- coaching, legal and compliance advisory, and research.
It does not apply to manual trades, healthcare professions, domestic services, construction, or any activity constituting the core operational business of the portage company itself.
The consultant must hold a minimum level-5 qualification (equivalent to a two-year post-secondary degree, Bac+2) or at least three years of professional experience in the relevant field, and must operate autonomously — sourcing their own assignments and managing their own schedule. In return, they benefit from the full rights of a salaried employee under French law: health insurance, unemployment insurance, pension contributions, income protection (prévoyance), and paid leave.
Why portage salarial is the right solution for foreign companies hiring in France
Beyond legal compliance, portage salarial offers international companies a contractual framework that is clear, cost-predictable, and operational within 48 hours.
A pure B2B relationship — with no administrative burden on your side
The relationship between the client company and the portage company is a commercial relationship between two legal entities. The client company receives a monthly service invoice — a single, straightforward accounting entry, with no social declarations to file, no French employer registration to maintain, and no payslip to issue.
All employer obligations fall entirely on the portage company as the legal employer: monthly URSSAF declarations, payment of social contributions, management of sick leave and absences, payslip production, and end-of-contract procedures. For a foreign finance or legal team, the administrative overhead is close to zero.
Structurally lower legal risk than a generic EOR arrangement
The primary risk of using a generic EOR in France is reclassification. If a French court determines that a worker placed by an unlicensed EOR provider is in fact operating under the direction and authority of the client company, that provider may be prosecuted for unlawful lending of labour — and the client company for undeclared work (travail dissimulé).
URSSAF audits can reach back up to three years, and amounts owed include all unpaid employer social contributions, plus late-payment penalties.
With portage salarial, this risk is structurally eliminated: the tripartite arrangement is explicitly provided for by law, the portage company is licensed and registered, and the collective agreement protects all parties.
Purpose-built flexibility for project-based and B2B work
Portage salarial is designed for project-based, mission-driven work. A fixed-term portage contract (CDD de portage) can be concluded for a specific assignment, for up to 18 months, renewable once. An open-ended portage contract (CDI de portage) is available for longer-term relationships, subject to a 36-month cap on the commercial mission with the same client.
In both cases, terminating the commercial agreement between the client company and the portage company automatically brings the consultant’s employment contract to a close — without a redundancy procedure, without a mutually agreed termination process, and without severance liability for the client. This makes portage salarial particularly well suited to companies testing the French market before committing to a local subsidiary, or to companies with recurring but time-limited needs for specialist expertise.
Transparent, predictable costs from day one
Portage salarial is priced simply. The client company pays an agreed daily or monthly rate, set in negotiation with the consultant. This all-in rate covers the consultant’s gross salary, employer social contributions (approximately 42 to 45% of gross salary), the mandatory salary reserve (10% of gross salary, held by the portage company and paid out to the consultant at the end of the assignment), and the portage company’s management fee (typically between 5% and 10% depending on volume and duration).
There are no hidden charges, no platform subscription fees, and no setup costs. The total cost of the engagement is known before the contract is signed. By way of comparison, staffing agencies and IT services companies (ESN — Entreprises de Services du Numérique) typically charge margins of 20% to 35% on the employment cost — substantially higher than portage salarial management fees.
When portage salarial is not the right answer
Portage salarial is the most appropriate framework for engaging independent consultants in France on a B2B basis, for intellectual assignments, over periods ranging from a few weeks to three years. It is not designed for the full-time, ongoing employment of workers in directly supervised roles within an organisation.
If your project requires hiring several people in France on a permanent basis, with internal operational functions — finance, operations, sales teams — and with the intention of building a lasting business presence, incorporating a French legal entity (SASU, SAS, or a subsidiary) remains the most appropriate route.
Didaxis can help you assess your situation and identify the most suitable structure for your expansion into France.
You can return to the parent page, Hire in France — legally, without a local entity, for a full overview of all available frameworks.
