Reformed status of trainees, the case of foreigners
Thursday, 11 October 2007
The status and the social welfare system of trainees were profoundly reformed by the law of 31 March 2006 on equal opportunities.
In a ministerial directive circulated by ACOSS, the government goes back over this reform (exemption, etc.) and provides further details on the position of foreigners on work placements in France.
Only work placements covered by an agreement are authorized since 1 July 2006. Furthermore, all work placements, whether or not they are compulsory, are governed by the same rules of exemption of social security contributions.
Nb > This system affects trainees on introductory work placements and professional or vocational training courses not covered by a work contract and not related to lifelong vocational training.
In pursuance of the territoriality principle, trainees on work placement in France are governed by French regulations on work placements (tripartite agreement, compensation, exemption, etc.), subject to international treaties and conventions.
Nationals from the European Economic Area and Switzerland coming for a work placement in France are exempted from these regulations on contributions if they are in possession of form E 101 and moreover can show evidence of having health and maternity, occupational disease, liability and injury cover as required by the legislation of their habitual country of residence.
Nb > For a description of social welfare schemes for trainees in different European Economic Area member states, consult the Cleiss site (www.cleiss.fr , sections “Publications”, “Studies”, “Trainees”).
For nationals from countries outside the European Economic Area and Switzerland, only trainees covered by the memorandum of agreement dated 19 December 1998 between France and Québec on the social welfare of students are exempted from French social security regulations.
Work placements in companies must be the subject of a tripartite agreement (between the trainee, the host company and the educational establishment).
Collection agencies must ascertain the existence of a tripartite agreement and the actual conditions of the trainee’s presence in the host organization.
In the absence of such an agreement, collection agencies are invited to subject any sums paid according to the standard rules applying to salaried workers.
Nb > Tripartite agreements are signed on the understanding that they relate to a work placement but do not rule out the possibility of being amended to become work contracts. Until such time, the interested party must on no account be considered a fully qualified resource of the company.
The host company is not liable for any welfare contributions if the trainee’s monthly pay does not exceed threshold. Otherwise, national insurance and health contributions are calculated on the difference between the amount of pay and the exemption threshold.
Nb > The so-called “Fillon” reduction does not apply.
On the other hand, mandatory private pension and unemployment benefit contributions are never due (the “pay” is not deemed remuneration in the sense of social security legislation).
Nb > Employers must declare all sums paid to trainees in the DADS-U (unified welfare contributions reporting system), the documentation of which specifies the relevant sections and codes.
For further information
Read the Work placement fact file on the URSSAF national portal
Last Updated ( Tuesday, 10 February 2009 )
Nb > This system affects trainees on introductory work placements and professional or vocational training courses not covered by a work contract and not related to lifelong vocational training.
Case of trainees coming from abroad
In pursuance of the territoriality principle, trainees on work placement in France are governed by French regulations on work placements (tripartite agreement, compensation, exemption, etc.), subject to international treaties and conventions.
Nationals from the European Economic Area and Switzerland coming for a work placement in France are exempted from these regulations on contributions if they are in possession of form E 101 and moreover can show evidence of having health and maternity, occupational disease, liability and injury cover as required by the legislation of their habitual country of residence.
Nb > For a description of social welfare schemes for trainees in different European Economic Area member states, consult the Cleiss site (www.cleiss.fr , sections “Publications”, “Studies”, “Trainees”).
For nationals from countries outside the European Economic Area and Switzerland, only trainees covered by the memorandum of agreement dated 19 December 1998 between France and Québec on the social welfare of students are exempted from French social security regulations.
Checking the tripartite agreement
Work placements in companies must be the subject of a tripartite agreement (between the trainee, the host company and the educational establishment).
Collection agencies must ascertain the existence of a tripartite agreement and the actual conditions of the trainee’s presence in the host organization.
In the absence of such an agreement, collection agencies are invited to subject any sums paid according to the standard rules applying to salaried workers.
Nb > Tripartite agreements are signed on the understanding that they relate to a work placement but do not rule out the possibility of being amended to become work contracts. Until such time, the interested party must on no account be considered a fully qualified resource of the company.
Exemption and calculation of national insurance and health contributions
The host company is not liable for any welfare contributions if the trainee’s monthly pay does not exceed threshold. Otherwise, national insurance and health contributions are calculated on the difference between the amount of pay and the exemption threshold.
Nb > The so-called “Fillon” reduction does not apply.
On the other hand, mandatory private pension and unemployment benefit contributions are never due (the “pay” is not deemed remuneration in the sense of social security legislation).
Nb > Employers must declare all sums paid to trainees in the DADS-U (unified welfare contributions reporting system), the documentation of which specifies the relevant sections and codes.
For further information
Read the Work placement fact file on the URSSAF national portal
