Hiring your first employee in your French company

Important considerations when hiring

When you hire your first employee, all of a sudden, you’ve got new obligations, new social legislation to take into account, you have to start paying wages, making social declarations… as such, here’s everything you need to know when hiring your first employee in France!

The employment contract

If you don’t have an employment contract, the authorities will automatically consider your employee to have a permanent contract, so you should always make sure you sign an employment contract.  By doing so, you can make fixed-term employment contracts or define a work-trial period.

Make sure your contract is in accordance with the collective agreement though! Especially when it comes to the work-trial period!

The DPAE, which stands for Déclaration Préalable à l’Embauche (Declaration prior to hiring)

Each time you hire your employee, you have to make a declaration to the Ursaff. This has to be done within the 8 days prior to your employee working for your company. This declaration must do the following 6 things:

  • Declaring the first job
  • Demanding the employee to be affiliated to Social Security
  • Demanding the employee to be affiliated to Unemployment insurance
  • Demanding the employee to be affiliated to a workplace health promotion service
  • Declaring the employee to the workplace health promotion service
  • Making the list of your employees to start making the annual declaration of social data

The Mutual (additional health insurance)

Since 2016, every company has to offer a Mutual to its employees. As such, make sure you’re affiliated with an organization offering a workplace health Mutual.

Making Pay slips and Social declarations

Every month, you’ll have to give pay slips to your employees and make social declarations to the DSN (Nominative Social Declaration).
To do this, you probably want to ask a specialized company or your chartered accountant.