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France — Prisme and unions sign agreement on Umbrella companies

28 June 2010

The Association of Temporary Employment Agencies and HR Services Providers (Prisme) has signed an agreement with several unions (CFDT, CFE-CGC and CFTC) on the future organisation of the Umbrella companies sector. The CGT union is also considering signing the agreement.

In the future the only way that Umbrella companies (portage salarial) will be allowed to operate is with a contract for services between the Umbrella company and the buyer, as well as a contract of employment between the Umbrella company and the contractor. The latter contract can be either permanent (contrat à durée indéterminée, CDI) or fixed-term (contrat à durée déterminée, CDD).

The agreement states that the Umbrella company sector will only operate to cover operational peaks or to carry out specific tasks for which the final client company does not have the relevant skills in-house. The Umbrella company sector cannot get involved in the day-to-day running of the final client's normal business activity.

The Umbrella company sector will be limited to managers who have to initiate all relationships, both with the final client and with the Umbrella company. The Umbrella company can therefore not act as a recruitment or temporary employment agency. Staffing agencies who wish to enter the Umbrella company sector will have to found a dedicated subsidiary.

Managers who work via Umbrella companies will have a basic gross minimum salary equivalent to 2,900 Euro a month for a management activity carried out on a full-time basis. The agreement also includes arrangements for pensions and professional training.

The agreement will be presented to the Ministry for Labour for legal approval.

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