With the creation of a branch for umbrella companies in December, social partners were tasked with building a framework for the development of this form of employment – a halfway house between freelance and salaried work – through conventional means. This was done through a deal reached unanimously by trade unions (CGT, FO, CGC, CFDT and CFTC) and employers, represented by the PEPS. It specifies how labour rules should be applied to this atypical form of employment, in order to provide legal security for companies, and contains provisions to safeguard workers employed under such arrangements.
The legal framework for umbrella companies was established by an ordinance on 2 April 2015 (article L.1254-1 of the labour code). As a worker employed under an umbrella company arrangement, the umbrella company takes responsibility for invoicing and administration, of the work and services the employee has negotiated and provided to a client company, which they themselves have approached. In exchange for handling this arrangement, the umbrella company takes a fee for management costs, creates a
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