Service Provision: Your Obligations – Explained in 2 Minutes

Description

What are your obligations within the framework of a service provision?

Your company has signed a contract with a foreign company, which provides a service performed by employees of that foreign company.

You therefore host foreign seconded staff (European or not) within your headquarters, a factory, or a business unit.

Know that you have obligations, even if you are not the employer of this posted worker, and that significant risks exist.

Attention! Most French companies hosting posted workers staff, as part of a service provision, often ignore that they have obligations.

Why is it important?

The particularity of posting of workers within the framework of a service provision is that it involves three parties: the employer service provider abroad, the client company in France, and the posted workers service provider.

The additional complexity arises from the fact that the mandatory formalities must be carried out by the employer abroad and that this has a direct impact on the company receiving the service, because as the client; it is co-responsible!

She must therefore ensure that everything has been done according to the rules by the company abroad.

To avoid being co-responsible, companies in France that engage foreign service providers choose to appoint us to oversee the entire process of these complicated formalities.

Finally, be vigilant, as posting of workers within the scope of a service provision are particularly monitored by authorities (labor inspection, URSSAF, police, etc).

What are your obligations and your risks?

Here are your main obligations: to obligatorily declare all your service providers, to verify that they possess the immigration documents, to ensure that your service providers are covered by a state social security scheme (either in their country of origin or in France), to provide payslips that meet French standards, and to respect the same rights as French employees (gender equality, equal pay for equal work, etc.)

There are all the “classic” risks associated with non-compliance with the rules: criminal risk (imprisonment for the manager), financial risk, operational risk (suspension or ban on the service), etc.

And there is a risk that is becoming increasingly important for large groups: the notorious reputation risk (bad press, blacklisting, etc.) and the risk of being under scrutiny by the labour inspection and URSSAF.
Many reasons to do things well!

Our recommendation

1. Firstly, check who manages the compliance of service providers in your company (Purchasing, legal, HR, international mobility, etc.).
2. Secondly, if no one is managing, quickly set up a compliance project for service providers, internal audit, and training on co-responsibility (because this is a matter that should not be taken lightly);
3. Finally, thirdly, choose a trusted partner, an expert in this complex subject, enabling simple, quick, effective, and compliant support!