Tuesday, 16 February 2010

The risks of undeclared employment in France

If you employ staff without declaring them you take a lot of risks!

By employing staff I mean 2 different things. You run your own business in France ie a restaurant or you need a tradesman to do some work at your property in France.

If you get caught by URSSAF, you could face 2 types of sanctions:

- Penal sanctions:

  • Up to 3 years imprisonment and a fine of €45 000 for a private individual
  • A fine of €225 000 and dissolution and closure of the business for a company

- Administrative sanctions:

  • Back payment of contributions and taxes plus penalty charges.
  • Standard liability equivalent to at least 6 months of guaranteed minimum wage
  • Cancellation of previous tax rebates and exoneration.

So if you need to employ an artisan in France, see my post here.

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