Staff secondment in France: legal framework, obligations and risks in 2026

Updated April 2026 - Staff secondment is an operation many companies carry out without fully measuring its legal weight. Whether the context is a group sharing expertise across subsidiaries, a company helping a business partner through a difficult period, or an employer trying to avoid redundancies during a slowdown, the mechanism looks simple on the surface. In reality it is strictly regulated by the French Labour Code, and deviations can expose directors to significant criminal penalties.

For related reading, see also Tax or social issue?, HR and payroll obligations in 2026 and Urssaf DPAE.

The lending of labour between companies is defined in article L8241-1 of the French Labour Code as the act by which a company makes one or more of its employees available to another company. Article L8241-2 sets out the conditions under which this operation is permitted when it is non-profit in nature.

The fundamental principle is straightforward: one company (the lending company) temporarily places one of its employees at the service of another company (the host company), which directs the employee's work during the assignment. The employment contract with the lending company is neither terminated nor suspended — it continues to produce all its effects. The employee remains legally attached to their original employer throughout the assignment.

This arrangement is distinct from subcontracting, in which the service provider retains direction over its own employees to deliver a defined output. It also differs from employee leasing (portage salarial), which involves a different tripartite relationship with an independent intermediary.

For a staff loan to be lawful under article L8241-2, four cumulative conditions must be met.

First, the non-profit requirement. The operation must not generate profit for the lending company. Billing must be strictly limited to the actual costs incurred: gross salary, employer social contributions, and, where applicable, professional expenses directly linked to the assignment (travel, meals, accommodation). Any margin, even a symbolic one, causes the arrangement to become a prohibited for-profit loan.

Second, a written agreement. Article L8241-2 requires a written agreement between the two companies. This document must specify the identity of the employee concerned, the job description at the host company, working hours, the place of work, the characteristics of the position, the duration of the secondment and the method for calculating billing.

Third, the employee's express consent. The secondment cannot be imposed. Article L8241-2 requires the employee to give their agreement by signing an amendment to their employment contract. This amendment must reproduce the key provisions of the intercompany agreement. An employee's refusal does not constitute misconduct or a ground for dismissal.

Fourth, dual information of employee representatives. The works council (Comite Social et Economique — CSE) of the lending company must be consulted before the secondment begins. The CSE of the host company must also be informed, particularly in companies with more than 300 employees.

French law prohibits in principle for-profit labour lending between ordinary companies. This prohibition aims to protect employees from being treated as a commodity and to prevent companies from operating as employment intermediaries without the status and obligations of a temporary employment agency.

However, the law provides several exceptions to this principle. Temporary employment agencies (ETT) may lend employees on a for-profit basis within the framework of standard temporary work assignments, provided the conditions of the Labour Code on temporary work are respected. Employers' groups (articles L8231-1 et seq. of the Labour Code) are structures whose very purpose is to make employees available to their members, with a dedicated legal framework. Employers' groups for integration and qualification (GEIQ) benefit from a specific status allowing secondments in pursuit of professional integration objectives. Finally, digital services companies (ESN), formerly known as IT services companies, may place their employees on assignment with a client within the framework of a properly structured service contract.

Outside these exceptions, any arrangement for profitable labour lending is a criminal offence, regardless of how the contracts are worded.

In practice, the secondment agreement is usually drafted by the legal departments or HR directors of both companies, often with the support of external counsel. It must be signed before the assignment begins in fact, not retrospectively.

Billing is a critical point. The lending company must charge exactly what it is spending on the employee during the assignment: gross remuneration as shown on the payslip, employer contributions, and documented professional expenses. It cannot apply a multiplier, an enhanced hourly rate or a commercial margin. Some companies use Cerfa form 13705 as a calculation basis for reimbursement, which formalises the salary reimbursement request.

To protect the arrangement, it is recommended to attach to each invoice a copy of the employee's payslip for the relevant period, along with a detailed breakdown of employer charges.

Obligations do not end once the agreement is signed. The lending company remains the employer: it pays the salary, issues payslips, manages leave, sick leave and disciplinary matters. It remains responsible for occupational health and safety in all respects that are independent of the specific workstation.

The host company is responsible for the conditions of execution of work during the assignment. This includes compliance with health and safety rules specific to the workstation, actual working hours, personal protective equipment and risk prevention. It is also responsible for any job-specific training that may be required. In the event of a workplace accident during the assignment, the host company's liability may be engaged.

Unlawful labour lending is a criminal offence defined and sanctioned by article L8243-1 of the French Labour Code. Natural persons found guilty face up to 2 years' imprisonment and a EUR 30,000 fine. Legal persons (companies) may be fined up to EUR 150,000 (article 131-38 of the French Criminal Code applying a fivefold multiplier).

Beyond criminal sanctions, the reclassification of a secondment as unlawful lending triggers cascading consequences. The operation may be treated as undeclared work, opening the door to social security contribution audits with surcharges. Contracts linked to the operation may be voided. Clients who contracted with the lending company can be drawn into the proceedings.

Inspections by the French labour inspectorate (DREETS) focus in particular on whether billing corresponds to actual costs, on the existence of written agreements and employee amendments, and on the reality of the line of authority during the assignment.

Within a corporate group, staff secondment is subject to the same fundamental rules. There is no automatic exception for intra-group operations. However, practice distinguishes between two situations.

Intra-group secondment is an operation in which an employee is temporarily assigned to a subsidiary or another group company, while remaining under contract with the parent or original company. The conditions of article L8241-2 apply. Billing must remain at actual cost.

Intra-group transfer is a more permanent operation, generally involving an amendment to the employment contract modifying the place of work and sometimes the employer. When there is a change of employer, it is necessary to determine whether the transfer is accompanied by a transfer of the employment contract within the meaning of article L1224-1 of the Labour Code.

In international groups, an additional layer of complexity arises with the posting of employees to France from a foreign country (or from France to another country), which triggers the application of the EU Posting of Workers Directive and declaration obligations with the DREETS.

Hayot Expertise insight: within corporate groups, the temptation is to treat secondments as simple internal reassignments. But each operation must be analysed individually — a shared org chart does not create any exemption from the French Labour Code.

Before any secondment, a pre-contractual review is recommended. It should verify that the operation falls within the scope of non-profit lending (or identify the applicable exception), that both companies have the necessary employee representative bodies, and that the employee has been properly informed and has consented in writing.

Drafting the agreement is a step that should not be delegated to a generic template. Each secondment has its own specifics: duration, working conditions, equipment, expenses, responsibilities. A poorly drafted agreement can itself constitute evidence of the unlawful nature of the arrangement.

Mission monitoring should be documented: activity reports, payslips forwarded to the host company for verification purposes, expense receipts, and where appropriate an end-of-mission report. In the event of an audit, the quality of the file often determines the outcome of the procedure.

Finally, the return clause in the agreement is important. It should specify the conditions under which the employee returns to the lending company at the end of the assignment, the circumstances in which an extension is possible, and the consequences of early termination.

In 2026, staff secondment is a legally sensitive operation that demands rigour and thorough documentation. The framework set out in articles L8241-1 and L8241-2 of the French Labour Code is not a formality: it is the dividing line between a lawful arrangement and a criminal offence. Companies wishing to use this mechanism would be well advised to seek competent legal and HR counsel before any assignment begins.

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(Official sources: Entreprendre.Service-Public.fr on labour lending, Cerfa 13705, Legifrance articles L8241-1, L8241-2, L8243-1 and L8231-1 of the French Labour Code)

Can an employee refuse a staff secondment?

Yes. Under article L8241-2 of the French Labour Code, secondment cannot be imposed on an employee. Their express agreement is required, evidenced by signing an amendment to their employment contract. A refusal does not constitute misconduct or a ground for dismissal.

What can be charged in a staff loan arrangement?

Billing is limited to actual costs: gross salary, employer social contributions and professional expenses directly incurred for the assignment. No commercial margin or multiplier may be applied. Any overcharging causes the arrangement to become a prohibited for-profit lending operation.

What is the difference between an intra-group secondment and a staff loan?

Both mechanisms are subject to the same rules under article L8241-2. The difference is primarily contextual: intra-group secondment occurs between companies within the same group, but no specific exemption applies. The formal requirements — written agreement, employee amendment, CSE information, billing at actual cost — apply in both cases.

What are the risks of illegal staff lending?

Article L8243-1 of the French Labour Code punishes unlawful labour lending with up to 2 years' imprisonment and a EUR 30,000 fine for natural persons. Associated consequences include social contribution audits for undeclared work, voidance of contracts linked to the operation, and the potential involvement of clients who engaged the lending company.