What is the difference between an Employer of Record (EOR) and a Portage Salarial in France?

Expanding your company into France is both an exciting yet daunting process. With legislation and employment laws to overcome, many businesses turn to an external company for support. But, do you need an Employer of Record (EOR) or a Portage Salarial? Here, we look at the differences between an Employer of Record and a Portage Salarial in France and the benefits they can bring to your expanding business.

What Is An Employer of Record?

An Employer of Record manages the employment of your international hires. While you are still responsible for the day-to-day management of your employees, working with an EOR means you can hire without a legal entity and simplify the global expansion of your business.

What Is a Portage Salarial?

Portage salarial translates to wage portage in English and is essentially the French equivalent of an EOR. It therefore allows companies to expand and recruit in France without a legal entity and in full confidence that employment laws have been complied with.

As with a PEO or an EOR, a portage can relieve companies of the administrative tasks that come with global expansion, many of which are costly, time-consuming and laden with risk. These tasks can include but are not limited to:

·       Payroll

·       Employment contracts

·       Employment visas

·       Tax contributions

·       Employee onboarding

·       Recruitment

A portage provides the assurance that the above tasks are handled in full compliance with French laws and allows the company to operate in France without the need for a legal entity.

Should I use a Portage Salarial in France?

Employing a portage salarial is one of the quickest ways for expanding companies to start operating in France.

Without the constraints of setting up a legal subsidiary, companies have a flexible, effective and compliant means of doing business in France through a portage salarial or an EOR. 

While some argue that setting up an entity establishes a more permanent business presence in France, a point that can be appealing to prospective clients and employees, it is a large commitment that requires ample resources, finances and time. A portage salarial on the other hand offers you a quick set up with all employee management, from visas to contracts, set up and maintained in a compliant and professional manner.

At Leap29, we can employ on your behalf, run payroll and take care of HR by acting as your portage in France and thus removing the need for you to establish a legal entity. With over 7 global offices and extensive experience working in France, we can be the partner you can trust to simplify your expansion into France. If you would like to find out more, contact our experts today.