Hiring in France vs Germany, an honest guide for 2026

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Frequently asked questions

• Is it cheaper to hire in France or Germany via EOR?+

  The EOR fee is the same in both markets at $599 per employee per month. The cost difference is the employer social contribution rate. French employer contributions run roughly 40 to 45% of gross salary; German employer contributions run 19 to 21%. On a EUR 80,000 gross salary, that is EUR 32,000 to 36,000 per year in France versus EUR 15,200 to 16,800 in Germany. At five employees, the country choice shifts the total employer cost by EUR 75,000 to 100,000 per year, not the EOR fee. Germany is less expensive to employ in on employer contributions, all else equal.
• When does a Works Council (Betriebsrat) apply in Germany vs a CSE in France?+

  Germany's Betriebsrat can be elected at any workplace with five or more employees under the Betriebsverfassungsgesetz. It has co-determination rights on dismissals, working time and social matters from day one of its election. France's Comite Social et Economique (CSE) is mandatory at 11 or more employees, with extended consultation rights on strategic and economic decisions kicking in at 50 or more employees. If you plan a small team, France gives more headroom before co-determination rights fully activate. Your EOR handles consultation-body obligations as the legal employer; ask how they handle a Betriebsrat notification or a CSE consultation before you sign.
• How do you terminate a hire in France vs Germany via EOR?+

  In France, the cleanest route when both parties agree is the rupture conventionnelle: a mutually agreed exit validated by the DREETS, typically taking 15 to 45 days from the initial agreement meeting. For a contested exit, the Code du Travail dismissal procedure applies. In Germany, the Kuendigungsschutzgesetz applies to employers with more than ten employees once an employee has passed six months of tenure; dismissals must be socially justified, and the Betriebsrat must be consulted before the dismissal notice is issued. The EOR runs the procedure in both countries as the legal employer. Ask any EOR: who handles a contested case, are they on your plan or a paid upgrade, and what is the typical timeline in each market?
• Does Teamed own an entity in France and Germany?+

  Teamed owns a German entity directly; Germany is one of 57 countries where Teamed operates its own legal entity (confirmed 2026-06-17). French hires are employed via a vetted local partner. Both routes deliver compliantly, but the accountability chain is shorter in Germany. Ask any EOR whether your specific country is owned-entity or partner-served before you sign, and ask where accountability sits on a Betriebsrat question or a CSE consultation.
• When should I set up my own entity in France or Germany instead of using EOR?+

  As a rough guide, EOR stays simpler at a small headcount in one country. As you add full-time employees, the cumulative per-seat fee approaches the fixed cost of running your own entity: a registered SAS or SARL in France, or a GmbH in Germany, with a local director where needed, bookkeeping and annual filings. The exact crossover is country-specific and salary-specific, so Teamed models it per country and flags the month proactively. Global Entity & Employment Operations (GEMO) sets up the entity in France or Germany on the same system with no re-onboarding of existing EOR employees.
• What does a French Convention Collective mean for my hire?+

  A Convention Collective is a sectoral collective agreement that applies automatically in France based on your company's principal activity code (APE/NAF code). It sets minimum wages, notice periods, severance entitlements and benefits above the Code du Travail minimums. There are hundreds of recognised agreements; an EOR must identify the correct one before issuing an employment contract. A wrong or missing Convention Collective is a compliance error with statutory consequences. Germany has an equivalent system of Tarifvertraege (tariff agreements) for unionised sectors, but they apply less automatically and universally than the French system.

• Hiring in France vs Germany: which is the better market for a growing company?+

  It depends on your talent pool and cost model. Germany is less expensive on employer social contributions: roughly 19 to 21% of gross salary versus France's 40 to 45%. On a EUR 80,000 salary, that is a difference of EUR 15,000 to 20,000 per year per employee in contributions alone, before the EOR fee (the same in both markets at $599 per employee per month). Germany's Betriebsrat triggers at 5 employees; France's CSE is mandatory at 11. If you need French-language talent or a Paris-based team, the contribution premium may be unavoidable and Germany's talent market won't substitute. If your role is in engineering, manufacturing or professional services with a strong German supply, Germany is the cost-efficient market. Ask any EOR for a side-by-side employer-cost model in both countries before you commit.
• Does an EOR in Germany need to deal with a Betriebsrat (Works Council)?+

  Yes. The Betriebsrat is a statutory right under the Betriebsverfassungsgesetz; it can be elected at any German workplace with five or more employees, including those employed through an EOR. The EOR, as the legal employer, carries the primary Betriebsrat obligations: notification before dismissals, consultation on working-time changes and social matters. As the directing employer, you have your own information obligations in certain circumstances. Ask your EOR whether a Betriebsrat has already been elected at their German entity, what your obligations are as the directing employer, and who handles a Works Council consultation at short notice. Teamed's real HR and legal experts handle Betriebsrat consultations directly through its own German entity.