Foreign technicians hired by a company based in France
Monday, 25 July 2005
Page 2 of 2
Social coverage
The principle is that affiliations and contributions are the same for French technicians and foreign technicians. Nevertheless, two specificities concerning compensation will be discussed here.
Moreover, as per European Community regulations, employers may be exempted from paying certain contributions for European Union citizens.
Technicians from non-european community countries
Concerning contributions collected by the URSSAF, if the technician is not a fiscal resident of France :
The principle is that affiliations and contributions are the same for French technicians and foreign technicians. Nevertheless, two specificities concerning compensation will be discussed here.
Moreover, as per European Community regulations, employers may be exempted from paying certain contributions for European Union citizens.
Technicians from non-european community countries
Concerning contributions collected by the URSSAF, if the technician is not a fiscal resident of France :
- CSG and CRDS are not owed ;
- the employee’s share of the healthcare contribution is 5.50 % (instead of 0.75 % for technicians residing in France) : for « non-resident technicians » a supplementary contribution of 4.75 % is therefore owed.
Other social contributions are the same as for technicians who are residents of France.
Technicians from the european economic area
Nb > European Union member states : Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, United Kingdom, Sweden (for the ten new member states of the European Union - Cyprus - Estonia - Latvia - Lithuania - Hungary - Malta - Poland - Slovenia - Slovakia - Czech Republic - see the « News » section) + the three member states of the European Economic Area (Iceland, Liechtenstein, Norway) + Switzerland, in accordance with appendix I of the agreement on the free movement of citizens signed by the European Union and Switzerland published by the Council and the Commission decision of April 4, 2002.
When a technician habitually and simultaneously exercises his or her profession on the territory of two or more Member States, the technician is, as stipulated by applicable European regulations, solely subject to the social security and unemployment insurance legislation of his or her country of residence.
As of January 1, 2000, the AGIRC and ARCCO complementary pension schemes fall under the field of application of EEC regulation 1408/71 and are thus governed by the same regulations as the basic schemes (social security and unemployment).
Nb > Legislation of the country of residence applies if the technician exercises part of his or her activities in the country of residence or if the technician works for several employers who are based on the territory of one of the Member States (article 14-2.b of EEC regulation 1408/71).
Therefore, proof of continuing coverage of the technician by a social security system in another Member State exempts the technician from affiliation with French systems for social security, unemployment insurance and complementary pensions.
This proof is provided by the E 101 form issued to the technician by the foreign organization ; in section 5-1 of the form, box 14-2.b will be checked (indicating the case of a person who habitually exercises a profession on the territories of several Member States).
However, in this case, contributions must be paid to organizations in the country of residence.
Thus, employers based in France must :
Nb > European Union member states : Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, United Kingdom, Sweden (for the ten new member states of the European Union - Cyprus - Estonia - Latvia - Lithuania - Hungary - Malta - Poland - Slovenia - Slovakia - Czech Republic - see the « News » section) + the three member states of the European Economic Area (Iceland, Liechtenstein, Norway) + Switzerland, in accordance with appendix I of the agreement on the free movement of citizens signed by the European Union and Switzerland published by the Council and the Commission decision of April 4, 2002.
When a technician habitually and simultaneously exercises his or her profession on the territory of two or more Member States, the technician is, as stipulated by applicable European regulations, solely subject to the social security and unemployment insurance legislation of his or her country of residence.
As of January 1, 2000, the AGIRC and ARCCO complementary pension schemes fall under the field of application of EEC regulation 1408/71 and are thus governed by the same regulations as the basic schemes (social security and unemployment).
Nb > Legislation of the country of residence applies if the technician exercises part of his or her activities in the country of residence or if the technician works for several employers who are based on the territory of one of the Member States (article 14-2.b of EEC regulation 1408/71).
Therefore, proof of continuing coverage of the technician by a social security system in another Member State exempts the technician from affiliation with French systems for social security, unemployment insurance and complementary pensions.
This proof is provided by the E 101 form issued to the technician by the foreign organization ; in section 5-1 of the form, box 14-2.b will be checked (indicating the case of a person who habitually exercises a profession on the territories of several Member States).
However, in this case, contributions must be paid to organizations in the country of residence.
Thus, employers based in France must :
- either pay contributions directly to organizations in the country where the technician resides (which in practice may be problematic) ;
- or mandate the employee to pay the contributions to the organizations in the employee’s country of residence.
Nb > In both cases, the employer remains responsible for the payment of contributions.
When it is the employee who pays the contributions to the organizations in his or her country of residence, the work contract must stipulate that :
Nb > Information concerning contribution rates applicable in each Member State of the European Economic Area, as well as information on organizations in charge of collecting contributions, is available on the CLEISS website, section « Documents », « Contribution rates » (see Useful links in French).
When the technician provides the employer with an E 101 form duly completed by the organization in the technician’s country of residence, the employer is thus exempted from paying contributions for social security, unemployment insurance and complementary insurance in France.
On the other hand, other contributions are still owed, in particular for Congés Spectacles (paid vacations for entertainment workers) and ongoing vocational training (AFDAS).
Since January 2001, French social security has also allowed this exemption from affiliation and payment of contributions for EEC technicians who have « self-employed » status in their country of residence and « temporarily assign themselves » to work abroad. Of course, ongoing affiliation with the social security system in the country of residence must be attested by filing form E 101. In this case, in section 5-1 of the form, box 14 bis-1.a will be checked.
Nb > On this point, the French government was required to change its position following two judgments by the European Court.
Previously, it considered that given the presumption of salaried status instituted by the labor code for the benefit of entertainment technicians, performances executed in France by technicians who had non-salaried status in a Member State should be considered by French social organizations as salaried activities requiring payment of contributions to the French social security system. Exemption from contributions was thus allowed only when the technician was hired by an employer based in a European Economic Area Member State who temporarily assigned the technician to work with a French employer who was a contracting partner.
- in accordance with article 109 of EEC regulation 574/72, the employee will pay contributions for social security, complementary pensions and unemployment insurance in the employee’s country of residence ;
- the sums paid to the technician include employer contributions owed to organizations in the technician’s country of residence.
Nb > Information concerning contribution rates applicable in each Member State of the European Economic Area, as well as information on organizations in charge of collecting contributions, is available on the CLEISS website, section « Documents », « Contribution rates » (see Useful links in French).
When the technician provides the employer with an E 101 form duly completed by the organization in the technician’s country of residence, the employer is thus exempted from paying contributions for social security, unemployment insurance and complementary insurance in France.
On the other hand, other contributions are still owed, in particular for Congés Spectacles (paid vacations for entertainment workers) and ongoing vocational training (AFDAS).
Since January 2001, French social security has also allowed this exemption from affiliation and payment of contributions for EEC technicians who have « self-employed » status in their country of residence and « temporarily assign themselves » to work abroad. Of course, ongoing affiliation with the social security system in the country of residence must be attested by filing form E 101. In this case, in section 5-1 of the form, box 14 bis-1.a will be checked.
Nb > On this point, the French government was required to change its position following two judgments by the European Court.
Previously, it considered that given the presumption of salaried status instituted by the labor code for the benefit of entertainment technicians, performances executed in France by technicians who had non-salaried status in a Member State should be considered by French social organizations as salaried activities requiring payment of contributions to the French social security system. Exemption from contributions was thus allowed only when the technician was hired by an employer based in a European Economic Area Member State who temporarily assigned the technician to work with a French employer who was a contracting partner.
Last Updated ( Wednesday, 13 December 2006 )
