The globalisation of the labour market has opened up unsuspected horizons for French professionals. Today, a company established in Berlin, London, São Paulo or Tokyo can perfectly recruit talent based in Paris, Lyon or Bordeaux — without the latter having to pack their bags. This scenario, long complex from a legal and administrative standpoint, is made possible thanks to a still little-known mechanism: the status of enterprise without establishment in France (ESEF).
What is the ESEF status?
The ESEF status allows a foreign company to operate in France and hire employees there without having an establishment, branch or subsidiary in France.
The foreign company may then register with French social protection bodies (URSSAF, pension funds, provident institutions) in order to legally employ a staff member in France, without having to create a legal structure on the territory.
Registration makes it possible to obtain a SIRET number, to pay employer and employee social contributions, and to issue pay slips compliant with the French Labour Code.
What are the advantages of the ESEF status for the employee?
For an employee wishing to work for a foreign company from France, the ESEF status offers numerous benefits, both in terms of security and day-to-day comfort:
- Full social protection: the employee hired by a company benefiting from the ESEF status enjoys the same protection conditions as an employee hired by a French company (health insurance, unemployment insurance, pension, etc.).
- A French employment contract: the employee benefits from a CDI (open-ended contract) or a CDD (fixed-term contract) governed by French labour law, with all associated guarantees.
- Maintained residence in France: the employee remains in France (working from home or from another location on French territory) and can develop their profile without the need for expatriation.
In practice, how does it work?
Setting up the ESEF status involves several administrative steps that the foreign company must carry out (often with the assistance of a specialist such as Projinvest Services):
- Agreement in principle with the employer: the company confirms to the future employee its intention to hire them in France.
- Registration with social bodies: the employer registers with URSSAF, Pôle Emploi (France Travail) and supplementary pension funds.
- Signing of the employment contract: a contract compliant with French law is drawn up, specifying the position, remuneration, working hours and all mandatory legal clauses.
- Declaration of the employee with social bodies: the foreign employer declares the hiring of each employee in France to URSSAF.
- Payroll management: the employer issues payslips each month, declares and remits social contributions.
- Commencement of duties: the employee begins working under the same status and with the same obligations and rights as a standard employee in France.
For which profiles is this option relevant?
A wide range of professionals may be interested in offering their skills to a foreign company while remaining in France (e.g. an engineer, a sales manager, an HR expert, a specialist consultant, etc.).
In general, any professional residing in France whose skills are of interest to a company without a legal presence on the territory may potentially benefit from this arrangement — provided their employer is willing to comply (which generally requires the support of an expert).
If a foreign company has contacted you and you have questions regarding the practical arrangements for employment in France, please do not hesitate to contact our services.