Posting of employees in France: what are the new obligations?

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Indeed, the Law of 10 July 2014 aimed to fight unfair social competition (or “social dumping”) is here to transpose the new European directive of 15 May 2014 regulating the posting of workers within the European Union.

Posting of employees in France: what are the new obligations?

Since July 12th 2014, the rules applicable to the posting of foreign workers on the French territory have been strengthened.

First, the law raises at the legislative level the obligation for the employer, established outside of France, which sends one or several employees on a posting to France, to submit a declaration of posting to the Labor Inspection.

To date, this obligation was provided for only by the regulatory section of the French Labor Code.

Furthermore, the foreign employer who sends one or several employees to France must now name a company representative on the national territory.

A Council of State decree (to be published) will determine the procedures for appointing this representative and his/her powers.

The principal or the client, who establishes a contract with a foreign supplier of services,  who sends one or several employees to France must verify with the latter that he/she did fulfill his/her obligations to declare and name a representative before the beginning of the posting.

In the event of an administrative control, if it turns out that the contractual partner infringed at least one of its obligations, the simple omission of this verification will result for the principal, or the client, in an administrative fine of not more than 2.000 euros per posted worker (4.000 euros in the event of a repeat offence in the year), with a maximum of 10.000 euros.

The implementation modalities of this sanction will be determined by a Council of State decree (to be published).

Moreover, the company which hosts the posted workers must now annex the posting declarations to its comprehensive staff register.

Finally, the social balance sheet of companies with 300 or more employees must mention the number of posted employees and the number of posted workers hosted.

In addition to these specific provisions on transnational posting, it should be noted that the law also stipulates new obligations with regards to subcontracting and new sanctions in case of illegal work.

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