As an employee of a portage salarial company, you don’t need to set up a business. The umbrella company serves as an intermediary between the contractor (also called a « salarié porté ») and their company. The umbrella company handles administrative tasks such as invoicing on behalf of the employee, collecting payment from the client, managing social security contributions, and providing employment contracts.
Here's how it works :
- You find a client and negotiates with him the terms and rate for his assignment.
You then contact a portage salarial company in order to put together the different contracts. You’ll sign a portage agreement and an employment contract (CDI or CDD) with the portage salarial company that will become your employer. - The portage salarial company contacts your client company to gather his company information that will be necessary for the service contract
- The portage salarial company, issues invoices on your behalf at the end of each month and collects payments from your client.
The portage salarial company deducts its fees for their services, your employee and employer’s charges and will pay you the remaining amount as a net salary - You receive a net salary after social charges and taxes deductions and a payslip.
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5 advantages of working with a portage salarial company
- Simplified administrative tasks: The portage company manages all the administrative tasks so that you can focus on your core work.
- Employee benefits: As an employee of the umbrella company, you are entitled to benefits such as sick leave, and maternity/paternity leave. These social advantages provide a sense of security and can also provide a better work-life balance. Having a French employment contract will also help contractors renting a home or getting a mortgage.
- Legal compliance : As an expert, the umbrella company makes sure that you comply with all the legal requirements in France, such as tax regulations and labor laws according to the French Labor Code.
- Access to the French market: It will allow you to enter the French market without the need to set up a legal business.
- Flexibility: Working with an umbrella company gives you the flexibility to work on multiple assignments or projects simultaneously, without the need to manage separate employment contracts.