© - ATH all rights reserved - Edition 2024 71 2024 EMPLOYER’S GUIDE END OF ASSIGNMENT ABROAD The assignment abroad can end for different reasons : expiry of stated term, termination of contract during assignment by the employer or the employee. When an employee employed by a parent company based in France has been loaned to a foreign subsidiary, the parent company must repatriate said employee if laid off by the subsidiary and find him/her a new job compatible with his/her previous duties. Collective agreements or the employment contract generally stipulate the conditions under which employees working abroad are repatriated and reintegrated at the end of their assignment. SOCIAL SECURITY PROTECTION OF POSTED EMPLOYEE For social security purposes, an employee is posted when he/she performs a short-term assignment abroad while remaining under the authority of his/her French employer. In this case, the original social security legislation is maintained. • If the employee is posted within the European Union (EU), the European Economic Area (EEA) or Switzerland, he/she remains affiliated to the French social security system, provided that the posting does not exceed 2 years. The employee also remains affiliated to the unemployment scheme and Agirc- Arrco supplementary pension plan. The employer must continue to pay social security contributions in France on all of the salary received. • If the employee is posted to a country outside the EU, EEA and Switzerland but one that has signed a bilateral social security agreement with France, he/ she remains affiliated to French social security during the maximum terms determined by said agreements. There are no contributions to be paid in the host country. • In other cases, French social security legislation is applicable to the posted employee for a maximum period of 3 years (renewable once) when the employer undertakes to pay the French contributions. The social security contributions of the host country must also be paid if required by local legislation. Since January 2022, the online « ILASS - Instruction de la Législation Applicable à la Sécurité Sociale » service, managed by URSSAF [social security contribution collection agency], automates examination and issue of A1 certificates, bilateral certificates and certificates of continued French social security coverage for other countries. SOCIAL SECURITY PROTECTION OF EXPATRIATED EMPLOYEE When an employer based in France sends an employee abroad under conditions not classed as a posting (see above), the employee is an expatriate in the sense of social security. He/she then ceases to be covered by the French social security system and is covered by the system of the country of employment in which the contributions will be paid. If he/she wishes to improve his/her social security entitlements, the employee can voluntarily join the social security for French people abroad (CFE). The French company must register its employees expatriated outside the EU, the EEA and Switzerland with the French employment agency. In other cases, the unemployment system will be that of the member state where the work is carried out. Concerning pensions, the expatriated employee can continue to be affiliated to Agirc-Arrco under the terms of a territorial extension. The expatriated employee ceases to benefit from the company’s employee benefits scheme. Certain collective agreements may impose specific coverage. Ask us : if the employee works in several EU or EEA states or in Switzerland, the employee is considered, for social security, to be performing all of his/ her activity on the territory of a single member state, the determination of which depends on a number of criteria.
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