Posting fraud – Legal Framework and Risks

Posting employees internationally is a common practice within the broader context of professional mobility. However, this arrangement, which is tightly regulated, can sometimes be misused. Posting fraud is a significant issue closely monitored by French authorities. But what exactly constitutes fraud? What legal framework applies, and what are the associated risks? Here is a detailed overview.

What is posting fraud?

Posting fraud occurs when the rules governing the posting of workers are deliberately circumvented. This can take various forms, including:

• Fictitious posting: when a company claims to send an employee on a temporary assignment abroad while the employee is in fact working permanently in the host country.
• Non-compliance with social obligations: failure to submit the required prior declaration, absence of a posting certificate, non-payment of social contributions, or failure to comply with French labour standards (salary, working hours, health and safety regulations, etc.).
• Under-reporting posting duration or manipulating contracts to evade French rules.

Such practices are considered both unfair competition and undeclared work.

The legal framework in France

Posting is strictly regulated under the French Labour Code and by European legislation (Directive 96/71/EC, Directive 2014/67/EU, amending Directive (EU) 2018/957, and Directive (EU) 2020/1057 on the posting of professional drivers in commercial road transport). These rules define the conditions and maximum duration of posting based on nationality and type of assignment. Employers must:

• Submit a prior declaration of posting to the relevant French authorities
• Designate a representative in France
• Provide the employee with a posting certificate (A1 form or Certificate of Coverage), or if no bilateral social security agreement exists, register the employee with the French social security system
• Comply with French Labour Code rules (“equal pay for equal work,” working hours, occupational health and safety regulations, etc.)

Failure to comply with these obligations can result in sanctions.

Risks of posting fraud

Companies engaging in posting fraud face several significant risks:

• Financial penalties: fines reaching several thousand euros, URSSAF reassessments, and retroactive payment of social contributions
• Criminal liability: prosecution for undeclared work, which may lead to imprisonment and fines
• Reputational damage: being blacklisted on the Ministry of Labour website, loss of client and partner trust, and negative impact on employer branding

Preventing fraud

To mitigate risks, it is essential to:

• Strictly adhere to secondment rules and procedures
• Ensure the assignment is correctly classified (actual secondment versus permanent activity)
• Maintain complete and accessible documentation
• Engage specialised experts to secure compliance with all requirements

Conclusion

Posting fraud represents a serious risk for companies sending employees abroad, particularly in France. The legal framework is strict, and controls are increasingly rigorous. Ensuring compliant and secure international mobility requires careful adherence to regulations and, where necessary, the support of specialised service providers.