France’s 35-Hour Workweek Explained: Overtime Rules & EOR Hiring Compliance

For international companies expanding into France, hiring local talent offers access to a skilled, innovative workforce and a gateway to the European market. However, France’s iconic 35-hour workweek, a cornerstone of its labor laws, introduces unique compliance challenges and opportunities. Understanding its flexibility and overtime rules is essential for businesses hiring without a subsidiary, ensuring compliance while optimizing operations.

What Is the 35-Hour Workweek?

Introduced in 2000 under the Aubry Laws, France’s 35-hour workweek sets a standard limit for full-time employees, aiming to promote work-life balance and job creation. Governed by the French Labour Code (Code du Travail), it applies to most employees in private companies, with exceptions for executives, certain industries (e.g., transport), and small businesses. For international employers, compliance is critical to avoid penalties, such as fines from the Labour Inspectorate (up to €1,500 per employee) or employee lawsuits.

The 35-hour rule doesn’t mean employees work only 35 hours—it’s a threshold for calculating overtime pay and ensuring rest periods. Flexibility in its application allows businesses to adapt to operational needs, making it manageable with proper planning.

Key Features of the 35-Hour Workweek

The 35-hour workweek is designed to balance employee well-being with business needs, offering structured rules and flexibility:

• Standard Limit: Full-time employees’ regular workweek is 35 hours, typically spread over five days (e.g., 7 hours/day). Hours beyond this trigger overtime unless specific exemptions apply. ‍
• Collective Agreements: Many industries negotiate collective bargaining agreements (CBAs) that adjust the 35-hour rule, allowing flexibility in scheduling or annualized hours (e.g., averaging 35 hours weekly over a year). ‍
• Exemptions: Senior executives (cadres dirigeants) and employees under “forfait jours” contracts (fixed annual days, typically 218 days/year) are exempt, focusing on tasks rather than hours, common for high-level roles.

Flexibility in Implementation

France’s labor laws provide several mechanisms to adapt the 35-hour workweek to business needs, making it feasible for international companies:

• Annualized Hours: CBAs often allow employers to distribute the 35-hour average over a year, enabling longer hours during peak periods (e.g., 40 hours/week) and shorter hours during lulls, provided the annual average complies. This suits industries like retail or tech with seasonal demands. ‍
• Flexitime: Employers can offer flexible schedules (e.g., variable start/end times) within the 35-hour framework, aligning with employee preferences for work-life balance, a key cultural norm in France. ‍
• Forfait Jours Contracts: For autonomous roles (e.g., managers, consultants), employers can use fixed-day contracts, where employees work a set number of days annually (up to 218) instead of tracking hours. This simplifies compliance for high-skill hires but requires agreements ensuring reasonable workloads and rest.

Overtime Rules and Compliance

Hours worked beyond 35 per week are considered overtime, with strict rules to ensure fair compensation and employee well-being:

• Overtime Pay: Overtime hours must be paid at a minimum 25% premium for the first 8 hours above 35 (36th to 43rd hours) and 50% thereafter, unless a CBA specifies higher rates. Alternatively, employees can receive compensatory rest (repos compensateur) at equivalent rates (e.g., 1.25 hours rest per overtime hour). ‍
• Annual Cap: Overtime is capped at 220 hours per employee per year, though CBAs may adjust this. Exceeding the cap requires Labour Inspectorate approval and risks fines. ‍
• Mandatory Rest: Employees are entitled to 11 consecutive hours of daily rest and 35 consecutive hours weekly (typically weekends), with limited exceptions. Violations can lead to penalties or employee claims. ‍
• Approval Process: Overtime must be authorized by the employer and, in some cases, works councils or CBAs, ensuring transparency and compliance.

Practical Considerations for International Employers

For companies from outside France hiring locally, the 35-hour workweek requires careful planning to balance compliance with operational goals. Here’s how to approach it:

• Leverage EOR Services: An Employer of Record (EOR), like Knit, can manage compliance with the 35-hour workweek, overtime pay, and rest periods, handling payroll, contracts, and CBA requirements. This is ideal for hiring without a subsidiary, reducing administrative burdens. ‍
• Consult Local Experts: Engage French labor lawyers or HR consultants to review contracts and ensure alignment with the Labour Code and CBAs. They can advise on forfait jours for executives or annualized hours for flexibility. ‍
• Draft Compliant Contracts: Include clear terms on working hours, overtime rates, and rest entitlements, specifying any CBA or forfait jours agreements. EORs or legal experts can provide templates tailored to French law. ‍
• Monitor Hours and Rest: Use time-tracking software to ensure employees stay within the 35-hour limit or receive proper overtime pay/rest. This is crucial for compliance with the Labour Inspectorate’s audits. ‍
• Respect Cultural Norms: Embrace France’s emphasis on work-life balance, including the “right to disconnect” (no work communications after hours). Offering flexible schedules or generous vacation (25-30 days) aligns with employee expectations, boosting retention.

Benefits of Mastering the 35-Hour Workweek

Navigating the 35-hour workweek effectively offers international employers significant advantages:

• Cost Efficiency: Using EORs and flexible arrangements like annualized hours avoids the high costs of a subsidiary while meeting compliance, saving on setup and legal fees. ‍
• Talent Attraction: Aligning with France’s work-life balance culture (e.g., flexible hours, ample vacation) attracts top talent in competitive sectors like tech, finance, and creative industries. ‍
• Operational Agility: Flexitime and forfait jours contracts allow businesses to adapt to project demands, supporting scalability without sacrificing compliance.
• ‍Compliance Confidence: Partnering with experts ensures adherence to French labor laws, minimizing risks of fines or disputes and building trust with employees.

France’s 35-hour workweek, with its blend of strict rules and flexible options, is a manageable framework for international companies hiring without a subsidiary. By leveraging EORs, consulting local experts, drafting compliant contracts, and embracing cultural norms, businesses can navigate overtime and rest requirements while tapping into France’s skilled workforce. This approach ensures compliance, enhances employee satisfaction, and positions your company for success in one of Europe’s most dynamic markets. Start with these strategies to hire confidently and thrive in France.