Working in France: Probably no relief from bureaucracy

German companies that temporarily send employees to France for specific activities must continue to expect considerable administrative costs in the future.

This article is part of the special topic Bureaucratic madness in the craft industry

German companies that export their services to France face a significant amount of bureaucracy. A new law regulating the secondment of employees, expected to come into force this fall, is unlikely to provide the desired relief, despite its original intention.

"Many details still need to be clarified. The law is intended to be a step towards a more open internal market. However, it lacks, among other things, facilitations for craftsmen who work across borders. In our view, this should be improved," says the President of the Baden-Württemberg Crafts Day (BWHT), Rainer Reichhold.

Many rules are only vaguely formulated

In the current version of the law, many provisions are vaguely worded. The implications for German companies wishing to operate in France remain largely unclear. For example, while the short-term secondment of employees is intended to be simplified, the types of activities to which this applies still need to be defined by decree.

The originally planned option to agree on separate regulations for the French border regions through an interstate treaty was also scrapped. "An opportunity to jointly develop sensible and pragmatic regulations for economic exchange on the Upper Rhine was wasted. Now everything depends on how the administrations interpret the law. This threatens a new mountain of bureaucracy instead of straightforward cross-border cooperation," said State Crafts President Reichhold.

Tougher penalties for violations

In addition, the sanctions for violations have been drastically tightened. These will amount to up to €4.000 per posted employee, or up to €8.000 for repeat offenses within two years. The regulation in the construction sector, which requires foreign companies to reapply for the "carte d'identification professionnelle," mandatory for every employee, remains unchanged. For French employees, however, it applies for the entire duration of the employment contract.

But there are also positive aspects of the new law: The registration fee of up to €50 per employee is eliminated, as is the registration requirement if no contractual relationship exists between the employer and the person being visited. This would make it possible to attend trade fairs or visits for customer acquisition without any bureaucracy.