France's Professional Future Law Reduces Secondment Obligations And Increases Penalties For Secondment Fraud

Author:Mr Jean-Marc Albiol
Profession:Ogletree, Deakins, Nash, Smoak & Stewart

French law No. 2018-771 of September 5, 2018, which is a law "for the freedom to choose one's professional future," modified various subjects of interest to companies, including secondment and illegal work. Enforceable since September 7, 2018, unless specified otherwise, this legislation only applies to companies seconding employees in France. This Act reduces the employer's obligations in order to make secondment easier and strengthens protections for secondees by increasing administrative penalties for noncompliance with such obligations.

  1. Relaxation of Formalities Related to Secondment

The law abolished the fixed contribution required for employers when declaring a secondment online.

Moreover, employers will not be required to submit prior declarations or appoint a representative in France in specific cases and under certain conditions, such as the following:

Short-term secondments or one-time events Secondments on the employer's own behalf Recurring secondments 2. Heavier Penalties for Secondment Fraud

Administrative penalties doubled for employers committing secondment fraud to a fine of4,000 per seconded employee (compared to2,000 previously) and a fine of8,000 for additional offences (compared to4,000). The period during which an employee will be subject to heightened penalties for...

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