IMPACT – MEDIUM
What is the change? As of July 1, foreign assignees posted to France on detachment status will be required to declare social security coverage by their home country or France, depending on whether there is a bilateral treaty. The government will also introduce a new fee of 40 euros per detachment, to be implemented at a later date but no later than Jan. 1, 2018.
What does the change mean? Assignees from a country that has a social security agreement with France must declare that they will be covered by the home country’s social security program. If there is no social security agreement, the assignee must register for French social security at least two business days before arriving in France.
Background: France implemented document rules covering posted workers in 2015, requiring the sending company to submit a prior detachment declaration and the local host company and its legal representative to maintain extensive records on the assignment and retain them in case of inspection.
BAL Analysis: Employers should make sure that they are in compliance with this additional declaration. France has imposed numerous regulations on posted workers and increased labor inspections and penalties for noncompliance.
This alert has been provided by the BAL Global Practice group and our network provider located in France. For additional information, please contact your BAL attorney.
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