Rules Set New Deadlines and Penalties for Employers Sending Posted Workers to France

At a Glance

The French Minister of Labor has published rules that:

• set a 15-day deadline for employers to produce documentation required by the labor authorities;
• add more required information to the online posted worker notification form; and
• implement penalties such as temporary suspension of services or closure of worksites for employers that do not comply with posted worker rules.

The Decree will be effective on July 1, 2019.

The situation

The French Minister of Labor has published a Decree and an Order establishing new conditions for the posting of workers in France. The Decree will be effective on July 1, 2019.

A closer look

The below is a summary of the key points of the new rules:

• Deadlines for posted workers.  Foreign employers now have up to 15 days to produce posted worker documentation if requested by the labor authorities. The Decree also sets the administrative fine limitation period for noncompliance with posted workers rules to five years.
• Additional information requested. The foreign employer will need to provide new information on the online posted worker notification form, such as the European Value Added Tax number of the co-contracting party, the employee’s gender, and the employee’s hourly salary rate during the assignment in France. There are also new documentary requirements for the project owner seconding the employee to France (copy of proof of filings of the posted worker declaration and sworn statement that the administrative fines were paid by the foreign employer, if applicable).
• Relaxed rules. Employers will be able to designate a representative in France (part of the posted worker regulations) on the French Labour Ministry’s website, replacing the requirement of a hard copy submission of this document. The Order also implements exemptions for posted worker notifications for short-term assignments.
• Increased administrative authority to combat illegal work. The Decree allows labor inspectorate officers and third parties to share documents related to seconded employees as part of an investigation for illegal work. The Decree increases the authority of the labour authorities to close the company or any site where the company works if it identifies illegal workers on the property. Lastly, the Decree allows labour inspectorate officers to issue injunctions for and temporarily suspend services of employers that fail to pay administrative fines for noncompliance with posted worker rules.

Impact

Employers that do not comply with the new posted workers rules can face suspension of services or even closures of their facilities and construction sites, a significant expansion of authority from the current situation.

Background

The Decree and Order implemented a law passed in September 2018. The Decree is part of a broader government policy to reduce differences in employment conditions (known in Europe as ‘social dumping’) and to prevent illegal and unauthorized work in France.

Looking ahead

Another decree related to this law is expected to be implemented by the end of 2019 that should simplify employers’ obligations to submit posted worker notifications and that should relax rules related to posted worker declarations for companies regularly seconding employees to France.

Fragomen will monitor further developments and report on relevant changes as they occur.

Fragomen in France is Fragomen France AARPI., operating as an immigration consultancy/law firm in France. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to parisinfo@fragomen.com.