{"id":32452,"date":"2021-07-01T11:56:40","date_gmt":"2021-07-01T09:56:40","guid":{"rendered":"https:\/\/bmhavocats.com\/2021\/07\/01\/labor-law-workers-posted-to-france-why-the-a1-posting-certificate-is-not-sufficient\/"},"modified":"2026-06-30T12:51:10","modified_gmt":"2026-06-30T10:51:10","slug":"labor-law-workers-posted-to-france-why-the-a1-posting-certificate-is-not-sufficient","status":"publish","type":"post","link":"https:\/\/bmhavocats.com\/en\/2021\/07\/01\/labor-law-workers-posted-to-france-why-the-a1-posting-certificate-is-not-sufficient\/","title":{"rendered":"[LABOR LAW] Workers Posted to France: Why the A1 Posting Certificate Is Not Sufficient"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row type=&#8221;vc_default&#8221;][vc_column][vc_video link=&#8221;https:\/\/youtu.be\/bMxHMXiIFfo&#8221; el_width=&#8221;90&#8243; align=&#8221;center&#8221;][vc_column_text css=&#8221;&#8221;]<\/p>\n<p style=\"text-align: justify;\">One might think that the A1 posting certificate protects a foreign company and its French client from criminal and financial penalties for undeclared work. However, this is not the case. Here are a few explanations to help ensure you are in compliance with the law:  <\/p>\n<p style=\"text-align: justify;\">First, let\u2019s remember that, to be legal, operating a business and employing workers in France requires the completion of certain formalities (registering the business with the appropriate registry, reporting income to Social Security or the tax authorities, reporting new hires to URSSAF, providing pay stubs to employees, etc.).<\/p>\n<p style=\"text-align: justify;\">Failure to comply with certain of these formalities constitutes the criminal offense of <strong>undeclared employment<\/strong>, as defined by Articles <a href=\"https:\/\/www.legifrance.gouv.fr\/codes\/article_lc\/LEGIARTI000037389034\/\">L.8221-3<\/a> and <a href=\"https:\/\/www.legifrance.gouv.fr\/codes\/article_lc\/LEGIARTI000033024966\">L.8221-5<\/a> of the Labor Code.<\/p>\n<p style=\"text-align: justify;\">There are numerous potential penalties. These include, notably, 3 years in prison for executives, a fine of up to 225,000\u20ac for the company, and lump-sum compensation for the employee equal to 6 months\u2019 salary. <\/p>\n<p>&nbsp;<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>In principle, a foreign company that posts its employees to France and provides an A1 certificate cannot be prosecuted for illegal employment.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">A company established in a European Union member state and the employee it <strong>posts<\/strong> to France remain <strong>subject to the social security laws of their home country<\/strong>.<\/p>\n<p style=\"text-align: justify;\">Thus, the foreign company is not subject to the French obligations, the violation of which constitutes the offense of undeclared employment.<\/p>\n<p style=\"text-align: justify;\">The compliance status of the foreign company and the employee is certified by an A1 certificate issued by the social security agencies in their country of origin.<\/p>\n<p style=\"text-align: justify;\">For each posting, the foreign company must be able to provide this certificate to the French authorities.<\/p>\n<p style=\"text-align: justify;\">Prior to each posting, and then every 6 months, as part of its <strong>duty of care<\/strong>, the French principal must obtain, among other documents, the A1 certificate.<\/p>\n<p style=\"text-align: justify;\">This certificate carries significant weight: as long as it is not revoked or declared invalid by the authorities that issued it, it is enforceable against French administrative authorities and judges.<\/p>\n<p style=\"text-align: justify;\">The A1 certificate serves, in a sense, as a safeguard\u2014both for the French client and for the foreign service provider\u2014against criminal prosecution in France for undeclared work.<\/p>\n<p style=\"text-align: justify;\">In a series of recent decisions, the Court of Cassation has reiterated that this safeguard is not indestructible.<\/p>\n<p>&nbsp;<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>If the A1 certificate is revoked, the foreign company may be convicted of employing undocumented workers, and the French client may be held financially liable.  <\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">The Social Security agency responsible for the foreign company may, at the request of the French authorities, declare the A1 certificate invalid.<\/p>\n<p style=\"text-align: justify;\">So, according to the Court of Cassation (<a href=\"https:\/\/www.courdecassation.fr\/jurisprudence_2\/chambre_sociale_576\/991_4_45745.html\">Cass. Soc., Nov. 4, 2020, No. 18-24.451<\/a>), what are the (serious) consequences of this withdrawal?<\/p>\n<p style=\"text-align: justify;\"><strong>The revocation of the A1 certificate results in French law applying to posted workers.<\/strong><\/p>\n<p style=\"text-align: justify;\">Consequently,<strong>the foreign company<\/strong> is required to enroll its employees in the French Social Security system and to pay French social security contributions.<\/p>\n<p style=\"text-align: justify;\">In addition, she is subject to the penalties for illegal employment.<\/p>\n<p style=\"text-align: justify;\">As for <strong>the<\/strong> French <strong>principal<\/strong>, he or she may be ordered to guarantee payment of the penalty for undeclared work, based on <strong>joint and several liability<\/strong>.<\/p>\n<p style=\"text-align: justify;\">The Court of Cassation\u2019s decision raises the question of the level of oversight that the principal must exercise in accordance with its duty of care.<\/p>\n<p style=\"text-align: justify;\">To avoid being held liable, it would appear that the principal cannot simply conduct a formal review of the documents submitted.<\/p>\n<p style=\"text-align: justify;\">He must also ensure that A1 certificates are not <strong>obtained fraudulently<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Even if valid A1 certificates are present, the foreign company and its French client may be found guilty of employing undocumented workers.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">This was the ruling of the Criminal Chamber of the Court of Cassation in four decisions dated January 12, 2021.<\/p>\n<p style=\"text-align: justify;\">How was that possible?<\/p>\n<p style=\"text-align: justify;\">It was \u201cenough\u201d for the judges to find that a <strong>sham secondment<\/strong> had taken place:<\/p>\n<p style=\"text-align: justify;\">This is the case if the foreign company has <strong>no substantial operations<\/strong> in the country where it is based (which has attractive labor laws) and recruits employees there for the sole purpose of \u201cseconding\u201d them to France.<\/p>\n<p style=\"text-align: justify;\">The same applies to a foreign company that conducts substantial business in its country of origin but also has <strong><u>a stable, continuous, and permanent operation in France<\/u><\/strong><strong>for which it assigns employees rather than establishing a permanent establishment in France<\/strong> to which the employees would be attached.<\/p>\n<p style=\"text-align: justify;\">In such cases, the Court of Cassation states, the foreign company\u2019s operations in France are no longer subject to the rules governing the posting of workers.<\/p>\n<p style=\"text-align: justify;\">The foreign company must establish a business presence in France and apply for registration with the RCS or the trades registry.<\/p>\n<p style=\"text-align: justify;\">It must also file the required employment registration forms for its employees in France.<\/p>\n<p style=\"text-align: justify;\">Failure to do so constitutes the offense of undeclared work for concealing business activities and employment.<\/p>\n<p style=\"text-align: justify;\">The company is not required to pay social security contributions in France but may be subject to the aforementioned penalties for employing undocumented workers.<\/p>\n<p style=\"text-align: justify;\">As for the French client, he or she may also be prosecuted for having used the services of employees who were victims of undeclared work.<\/p>\n<p style=\"text-align: justify;\">The decisions of the Court of Cassation leave open the question of the principal\u2019s liability under its duty of care.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><strong>Can the principal be held liable for failing to fulfill its duty of care by merely conducting a formal review of the documents submitted by the foreign company without attempting to detect a case of false posting?<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">The answer will likely be provided in future court rulings.<\/p>\n<p style=\"text-align: justify;\">In the meantime, foreign companies engaging in stable, continuous, and permanent business activities in France should exercise caution: they cannot rely solely on seconded employees to carry out these activities.<\/p>\n<p style=\"text-align: justify;\">As for French clients, they must undoubtedly ensure that their foreign contractor is entitled to rely on the provisions applicable to the posting of workers.<\/p>\n<p>&nbsp;<\/p>\n<p>Isabelle Le Coq, Andrea Linne, Alexandra Leroux[\/vc_column_text][vc_btn title=&#8221;DOWNLOAD THE ARTICLE&#8221; style=&#8221;outline-custom&#8221; outline_custom_color=&#8221;#092b63&#8243; outline_custom_hover_background=&#8221;#E7E6E6&#8243; outline_custom_hover_text=&#8221;#092B63&#8243; shape=&#8221;square&#8221; size=&#8221;lg&#8221; align=&#8221;left&#8221; css=&#8221;&#8221; link=&#8221;url:https%3A%2F%2Fbmhavocats.com%2Fassets%2Fuploads%2F2025%2F10%2FLess-is-more-2021-Travailleurs-detaches-en-France-pourquoi-le-certificat-de-det_02158169.pdf|target:_blank|&#8221;][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;vc_default&#8221;][vc_column][vc_video link=&#8221;https:\/\/youtu.be\/bMxHMXiIFfo&#8221; el_width=&#8221;90&#8243; align=&#8221;center&#8221;][vc_column_text css=&#8221;&#8221;] One might think that the A1 posting certificate protects a foreign company and its French client from criminal and financial penalties for undeclared work. However, this is not the case. Here are a few explanations to help ensure you are in compliance with the law: First, let\u2019s remember that, [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":32002,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[969,964],"tags":[],"class_list":["post-32452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-less-is-more"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>[LABOR LAW] Workers Posted to France: Why the A1 Posting Certificate Is Not Sufficient - BMH Avocats<\/title>\n<meta name=\"description\" content=\"One might think that the A1 posting certificate protects a foreign company and its French client from criminal penalties...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bmhavocats.com\/en\/2021\/07\/01\/labor-law-workers-posted-to-france-why-the-a1-posting-certificate-is-not-sufficient\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"[LABOR LAW] Workers Posted to France: Why the A1 Posting Certificate Is Not Sufficient - 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