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WORKING IN FRANCE

EXPLAINED: Why it just became a little easier to be self-employed in France

Life might be a bit easier for self-employed workers in France now that a new law has gone into effect. Here are the details.

EXPLAINED: Why it just became a little easier to be self-employed in France
Photo by Brad Neathery on Unsplash

Over three million people are considered “self-employed” in France, and their lives might have become a bit easier now that the “law in favor of independent professional activity” has officially come into force. 

Voted on in February 2022 under Macron’s first mandate, the law, which came into effect on May 15th, seeks to create a simpler and, above all, more protective legal, fiscal and social environment for “artisans, shopkeepers, micro-entrepreneurs and people of liberal professions.”

Who exactly does the changes cover?

The changes could impact France’s three million “travailleurs independents” which includes all kinds of self-employed workers working in many different professions.

The one self-employed status in France probably most familiar to readers is micro-entrepreneur but many kinds of small business owners and contractors are also considered travailleurs independents.

Now, here are the changes worth knowing about:

A better protection and separation of personal assets

One of the most important changes this law will bring is a more clear separation between personal and professional assets. As of May 15th, those registered as ‘self-employed’ (micro-entrepeneur/ entreprise individuelle) will see their personal and professional assets automatically separated. This means that should there be professional financial constraints, particularly involving creditors, the self-employed person’s personal assets will be more protected from being seized if the individual runs  into problems. This includes places of residence, personal vehicles, and movable assets. 

However, Assembly rapporteur Marie-Christine Verdier-Jouclas warned previously: “We should not expect miracles, because the most important creditors, including banks, will continue to require special securities on certain assets of entrepreneurs, including their personal property.”

Minister of Small and Medium Enterprises, Jean-Baptiste Lemoyne said: “We expect banking institutions to take all responsibility in the implementation of this reform. We will be very vigilant.”

It will be easier to claim the unemployment benefit for the self-employed

Self-employed people will now have an easier time claiming the “allowance of independent workers” (L’allocation pour les travailleurs indépendants) which is essentially an unemployment benefit specifically directed at the self-employed.

Now, they must simply be able to show that they have involuntarily lost employment – meaning the activity they were performing as a self-employed person is no longer viable. Previously, self-employed workers were required to be going through the legal process of “receivership or judicial liquidation” to claim this allowance. Now, a ‘cessation of activity’ can be certified by a trusted third party, such as a chartered accountant. 

In order to qualify for this benefit, self-employed workers now must prove at least €10,000 of income spanning over one of the last two years, in contrast to the previous rule that required a minimum of €10,000 on average over the last two financial years. The benefit will depend on the earnings of the worker, with the maximum amount being €800 per month, and the minimum being €600.

The benefit can be paid for up to six months (182 days), and it is not renewable. 

It will be easier access to professional training (the ‘CFP’) 

In return for the contribution to professional training (CFP) to which they are subject, self-employed workers can, under certain conditions, benefit from total or partial financing of their professional training. But for this, they must be patient. With the NAF code of their activity, they must identify the training access fund (FAF) to which they belong. To make their task easier, the legislator has listed the different FAFs on the entreprendre.service-public.fr website.

If you are wondering whether your professional activity fits into this definition, but you are not sure, you can reach out to your local Chambres du Commerce et de l’Industrie. Be advised that some fields, like practicing law, for example, cannot claim this status.

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WEATHER

Heatwave sends France’s employees back to the office – for the air con

As France swelters under an unusually early heatwave many employees who had been working remotely since the pandemic have headed back to the office - in order to benefit from the air conditioning.

Heatwave sends France's employees back to the office - for the air con

Flexible working practices – a mix of in-office and at-home working – have become increasingly common in France since the Covid lockdowns proved that some jobs can be done just as easily from home as in the office. 

During the lockdowns, télétravail (remote working) was compulsory for those whose jobs allowed it, it then became recommended but since late 2021, flexible working practices and work-from-home has been a matter for discussion between workers and their bosses.

A study by Insurance firm Malakoff Humanis has found that 38 percent of employees in France still do at least one day of télétravail per week.

READ ALSO Can your boss force you to work during a heatwave in France?

But, with France currently burning under a ferocious early summer heatwave that is expected to send temperature records tumbling, office space is quickly filling up.

Air-con is rare in French homes, but many office spaces have it and workers are keen to avail themselves of the cool air.

“I came for the air conditioning because I didn’t need to come to work today,” one office worker in the capital told Le Parisien. “This Friday, I’m officially remote working, but I’ll be here [in the office].”

Météo France expected the temperature to reach 35C in the capital on Friday. In the southwest of the country, the mercury was expected to pass 40C in cities including Bordeaux and Toulouse.

One Bordeaux computer engineer told the paper: “At home, it gets hot pretty quickly, you can easily reach 30C. It’s much more pleasant to work with a regulated temperature, without abusing the air conditioning for ecological reasons.”

And a financial manager – working shirtless and in shorts in his top-floor apartment in Marseille – said he regretted not bothering going into the office as the heat bit. 

“If I open the windows, the hot wind blows in. When the windows are closed, I cook,” he said.

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