Employment in France

Well, we got a little bit of snow yesterday- only about two centimetres deep, but enough that the children were out desperately trying to slip and slide down the field on a bin-bag and a dustbin lid. Meanwhile only 100 kilometres from here away they got 20 centimetres which is much more impressive. And ours was gone by afternoon, so the pleasure and excitement was pretty short-lived, although the cold wind is still with us.

For reasons I’ll spare you for the moment we are becoming involved in the whole ’set up a business in France’ thing, which is to say the least both expensive and administratively complicated. Indeed, if you happen to be the president of a country setting out to discourage private enterprise and increase unemployment you could do well to pass some time in France studying their systems.

Even the most sturdy young entrepreneur will weaken in the face of endless bureaucracy and the tempting (and largely unavoidable) prospect of paying many thousands of euros every year in charges, including the minute that you announce you want to setup a business, regardless of whether the business might succeed or fail. Of course, it will fail, because no new business can sustain massive charges, but at least a few civil servants get to keep their jobs.

And by the way it is completely illegal to work in France unless you are legally registered and paying your dues. Looking on the bright side, we don’t want to employ anyone yet, which is an even more shocking expense because of the associated social security costs that need to be paid, and the complete impossibility of getting rid of an employee later on.

We heard a good story, more or less true as I understand it, about a local company that employed a cleaner. After two weeks at work the cleaner was overcome by stress and had to take some time off. Two years off in fact, while meanwhile the company had to keep on paying her. They eventually got the situation to court, or tribunal, or whoever in France deals with such things, to try and resolve the matter.

Eventually and after a lot of negotiating the court relieved the company of their responsibilities to the ‘cleaner’ in return for the employer making her a significant pay-off and also paying her legal costs. Now really, how much does that kind of ‘employment protection’ really help the French economy?

Hence we are not on the verge of relieving unemployment in the region. and neither are the many local artisans who much prefer to work long hours alone than be faced with the costs and risks of actually employing someone.

In case you think I’m exaggerating track down the URSSAF website, which calculates the social security payments you need to make, based on your income projections. As evidence for what I am saying I just went and typed in estimated income of 5,000 euros per year, for each of the years 2007-2009. Their social security costs tell me I need to pay for each of those three years: 2007 – 4,914 euros; 2008 – 2,780 euros; 2009 – 2183 euros. I promise you, these are real government figures!

Now seriously, year 1 income 5,000 euros, social security payments 4,914 euros? You’ve got to be kidding me. If, say, I accept advertisers on this site worth 100 euros a week, I have to pay 98 euros a week to the government?

I wonder what Mrs B will spend the remaining two dollars on. Perhaps we might share a cup of coffee once a fortnight.

One Response to “Employment in France”

  1. Thought you must have got it wrong but, sadly, it looks like you didn’t.

    Interestingly, if you put in zero for the relevant years, you still need to pay out 3700€ the first year though they pay you in subsequent years. So, the thing to do would be to make loads in the first year then lose money in all subsequent years.

    One wonders what they would do if you created a series of companies in successive years and stopped trading from the second year onwards for each one? Might sound like a daft thing to do but presumably it would be workable in an Internet environment ie:

    year 1: create SARL InternetScam1, make fortune
    year 2: create SARL InternetScam2, buy “assets” of IS1 for 1€, make fortune in IS2, make nothing in IS1

    etc.

    Can’t really see why you wouldn’t do quite well on this after a few years as by year three of each they’re paying you around 700€.

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