IMPACT – MEDIUM
What is the change? France has published the so-called “Professional Future” law, which eases certain requirements on short-term secondments. The law also introduces stricter penalties against posting fraud.
What does the change mean? Certain short-term assignments and activities may be exempt from the requirements to report postings and to appoint a representative of the foreign company in France. Companies that regularly post workers to France will also be able to arrange assignment terms with the authorities.
Background: Other provisions increase monetary penalties for employers who violate posting regulations. Failure to report will double from €2,000 to €4,000 per illegally posted worker and from €4,000 to €8,000 in the event of a repeat offense within two years. Companies that do not appoint a representative will face fines up to €500,000. Penalties also apply to the hosting entity in France.
Employers found to be noncompliant for undeclared postings could be subject to the publication of their name on a public government website with details of the violation or violations as well as the consequences. Other penalties include barring employers from posting workers for up to two months. Employers with unpaid fines would be banned from posting new foreign workers until they pay their fines.
Analysis & Comments: Companies should make sure that they perform all mandatory reporting of posted workers. Information will become clear about the above-mentioned exemptions once the implementing decree is issued and authorities begin enforcing the law. The increase in penalties is a sign of how serious France is about stopping employment violations and undeclared work in particular.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
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