Employer of Record (EOR) in French Southern Territories

Currency

Euro

Capital

Port-aux-francais

Region

Africa

Language

French

Population

140

GDP

GDP growth

Ease of doing business

World GDP share

1. Grow your team in French Southern Territories with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in French Southern Territories , particularly if you don't have established local relationships. You can hire employees in French Southern Territories effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents

Grow your team with Rivermate as your Employer of Record (EOR)
Summary of the country
Public holidays
Types of leave
Employment termination
Working hours
Minimum wage
Employee benefits
Taxes
VISA and work permits
Why Rivermate?

2. Summary

The French Southern and Antarctic Lands are a French overseas territory (Territoire d'outre-mer or TOM). It comprises:

1. Adélie Land (Terre Adélie), the French claim on the continent of Antarctica.

2. Crozet Islands (Îles Crozet), a group in the southern Indian Ocean, south of Madagascar.

3. Kerguelen Islands (Archipel des Kerguelen), a group of volcanic islands in the southern Indian Ocean, southeast of Africa, approximately equidistant between Africa, Antarctica and Australia.

4. Saint Paul and Amsterdam Islands (Îles Saint-Paul et Amsterdam), a group to the north of the Kerguelen Islands.

5. The Scattered Islands (Îles Éparses), a dispersed group of islands around the coast of Madagascar.

The region is also known as the French Southern Lands (French: Terres australes françaises) or the French Southern Territories, which emphasizes France's refusal to recognize French sovereignty over Adélie Land as part of the Antarctic Treaty System.

There are no permanent residents in the whole area. Around 150 people (in the winter) to 310 people (in the summer) are normally present in the French Southern and Antarctic Lands at any one time, however, they are mostly military personnel, authorities, scientific researchers, and support staff.

Because of their pristine nature, biodiversity, and massive bird populations, the Crozet, Kerguelen, Saint Paul, and Amsterdam Islands were designated as a UNESCO World Heritage Site as the "French Austral Lands and Seas" on July 5, 2019.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in French Southern Territories is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Notice period

Probation period

Severance pay

6. Working hours

There is no information about the working hours for this country.

General working schedule

The standard workweek is 35 hours, with a weekly maximum of 48 hours, and an average of no more than 44 hours over a 12-week period. Contractual or collective bargaining agreements may allow for an increase in the 12-week average to 46 hours per week. The working day cannot exceed ten hours, although a contract or collective bargaining agreement may allow for an extension to twelve hours. Certain executives and white collar employees are exempt from these restrictions. While the majority of other employees may be required to work more than 35 hours per week, they must be compensated for the additional hours, which is typically done through additional vacation time.

In practice, due to the mid-day break, the standard French workday is actually longer than in many other countries, typically beginning between 8:00 and 9:00 AM and ending at 6:00 PM or later, with an hour-long or longer break between roughly 12:30 and 2:00 PM.

Employees must take a minimum of 35 consecutive hours of rest over a seven-day period.

Overtime

Overtime is limited to 220 hours per year, and the workweek is limited to 48 hours, including overtime, which is compensated on a percentage of income basis. A collective bargaining agreement may establish a higher or lower rate of overtime.

Night work is defined as work performed between the hours of 9 p.m. and 6 a.m. Night work hours are determined by collective bargaining, but cannot exceed eight hours in a 24-hour period or 40 hours on average over a 12-week period.

Outside of standard office hours, employees in France have the "right to disconnect," which includes not checking, answering, or sending emails.

7. Minimum wage

There is no information about the minimum wage for this country.

The monthly minimum wage is 1,554.58 EUR, which equates to 10.25 EUR per hour.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

The corporate tax, or impot sur les societes (IS), is a general yearly tax that applies to all profits generated in France by companies and other organizations. It affects about one-third of French businesses. For all of their operations, the standard rate is 33.3 percent. The net revenues from corporate tax in 2016 amounted to €29.9 billion. The difference between gross profit and costs and deductible expenditures equals taxable income. The gap between sales and expenses results in gross operating profit. In addition to the gross operational profit, all other revenue or gains are usually taxable: rental income, interest, deposits, and bonds. Long Term Capital Gains are taxed at a lower rate for a fixed period of years. Since 2012, a tax credit of 7% of total salary expenses has been subtracted from the gross tax payable.

Individual income tax

For an income below, €9,700, the tax rate us 0.

For an income from €9,711 to €26,818, the tax rate is 14%.

For an income from €26,818 to €71,898, the tax rate is 30%.

For an income from €71,898 to €152,260, the tax rate is 41%.

For an income beyond €152,260, the tax rate is 45%.

VAT, GST and sales tax

The VAT (French: taxe sur la valeur ajoutée, TVA) is a general consumption tax levied on products and services sold in France. It is a proportionate tax on production collected by businesses and eventually funded entirely by the end buyer, i.e. the consumer, since it is included into the price of products or services.

The standard rate is currently set at 20%. There are two discounted rates: 10% for books, hotel stays, local public transit, and restaurant meals, and 5.5 percent for most groceries. Only prescription medicines insured by Social Security are subject to a 2.1 percent surcharge. In 2013, the net income from VAT was €141.2 billion.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

In France, employment contracts are typically for an indeterminate period of time, while there are a variety of alternative forms that are employed in special circumstances. must be written and Several forms of employment contracts, particularly fixed-term contracts, must always be in writing, and although a written contract is not always needed, it is nearly always advised. All written contracts should be in French, and any employee who does not speak French should be provided with a copy in their native language. There is no standard form for an indefinite duration contract since it is not particularly needed to be in writing, but it must contain certain terms and conditions.

A probation term must be indicated in the employment contract if the employee will be subject to one. Different regulations governing probationary periods may be included in collective bargaining agreements.

While indefinite-term contracts are the most common and favored kind of contract, employers may also use fixed-term contracts, part-time contracts, temporary contracts, or apprenticeship contracts as necessary, or follow a collective bargaining agreement.

Contracts for a certain period of time must always be in writing.

With Rivermate being your Employer of Record (EoR) in French Southern Territories, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Euro (EUR)

13.Opening a subsidiary in French Southern Territories

There is no information about the working hours for this country.

How to set up a subsidiary

Because of its position and involvement in several European organizations, France is an economic powerhouse in Western Europe. The government also encourages international investment, giving the country an attractive location for growth. France boasts a stable and contemporary business environment that is ideal for startups and other companies trying to build a name for themselves.

Several criteria, such as the industry or kind of firm you intend to create, should be considered throughout the France subsidiary creation procedure. Do you have any key commercial deals or relationships? Have you thought about the nationality of the people you wish to hire? Before you begin the setup procedure, you must answer all of these questions.

In France, the most frequent kind of subsidiary is a private limited liability business known as a SARL (société à responsabilité limitée). To form a private LLC, you must first:

1. Examine the availability of your company's name.

2. Open a business bank account.

3. Open a physical office in France.

4. Select an auditor.

5. Publish the incorporation of your French subsidiary in the official publication.

5. Fill out tax forms, social security forms, and insurance forms for your business.

6. Commercial Court will stamp your company's books.

Subsidiary laws

When planning to establish up your subsidiary in France, you must adhere to a number of French subsidiary legislation, including different French accounting and tax requirements. If your firm is located outside of the European Union (EU), the withholding tax on profits is 25%, but you may be able to receive lesser taxes due to double tax treaties signed by France.

You will require the following items, according to French subsidiary laws:

1. The subsidiary must be formed by at least two persons or corporate organisations.

2. A minimum share capital of one euro is required.

3. A manager who is a French resident or from the European Economic Area (EEA).

4. There can be no more than 100 stockholders.