Doing Business in France - RSM International

Changes in the labor contract
Employers may propose changes to an employee’s contract. Depending on whether
this involves a substantial change or simply a change in working conditions, it may be
obligatory to obtain the employee’s consent.
A change to a contract may relate to an essential component such as pay, qualifications,
and more generally, the work assigned to the employee. In this case, the employer
cannot impose a change to the contract but must propose the change to the employee.
Simple changes to working conditions may however be imposed by the employer
within the remit of their managerial authority.
3.2 Hiring procedures
A company can start hiring as soon as it has been registered.
The administrative formalities involved in hiring employees have been streamlined
with the introduction of a single reporting form for newly hired employees (DUE -
Déclaration Unique d’Embauche).
The employer must fill in the form in the 8-day period before a new employee starts
work and send it to the local URSSAF office. The form can also be submitted on line.
In addition to the DUE, the following is also required:
• declaring to the labor inspection the first employee hired;
• affiliation to the complementary retirement funds within 3 months of setting up the
business;
• carrying out the required procedures for hiring a foreign member of staff (excluding
European nationals).
3.3 Profit sharing and share ownership programs
In addition to their wages and salaries, employees and corporate officers may be
offered employee profit-sharing and share-ownership schemes that are attractive for
workers and provide tax and social security benefits for both employees and employer.
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