To be able to work as a freelancer while maintaining the benefits of an
employee status is very much the "dream situation" for professionals
seeking employment.
These "sociétés de portage salarial" or "Umbrella Companies" believe that they have found
a way of enabling professionals to do just that.
How it works
The professional does his own prospecting to find clients and
secure assignments.
The contract for each assignment is made out between
the "Umbrella Company", the professional and his client. The nature of the
assignment, its duration and the professional's fees are clearly set out.
For the duration of this contract the professional becomes an employee of the "Umbrella
Company".
The fees are paid directly to the "Umbrella Company" which
in
turn pays a "salary" to the professional after deducting social security charges
and commission.
On average, the salary is around half of the total assignment fees.
With this system everyone is a winner:
|
The
professional |
The client |
|
Is able to test his potential freelance activity without taking any risks
Retains his right to unemployment benefit (ASSEDIC)
Sets his own rates
Keeps his independence
Continues to use his skills and puts his expertise to advantage
Continues to pay into the special management retirement fund (as well as the
regular state retirement fund) |
Does not need to worry about lengthy administrative formalities
Does not have to worry about redundancy plans
Does not have to pay costly employer social security charges
Reduces the company's fixed charges
Benefits from greater flexibility
Is able to react more quickly to the demands of the market
Is able to outsource tasks which are not part of the company's core activity |
|
|
|
This way of working, or "le portage" as it is
called in French, is set for a promising future as it responds to the needs
of companies with reduced flexibility as well as to professionals with reduced
full-time employment prospects.
Thus a small company with limited means is able to
fund the services of a highly qualified professional for short-term or one-off
assignments.
