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From employee to freelancer | Strategies, Support, and legal statuses

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Summary

How to move from employee to freelancer safely?

Article summary:

  • Weighing the pros and cons: Take the time to consider the advantages and disadvantages of being an employee versus a freelancer before making any decision.
  • Position adjustment: Ask your employer for a leave of absence to start a business or switch to part-time for a smoother transition.
  • Ending employment: Consider terminating your permanent contract (CDI) in a way that allows you to be eligible for unemployment benefits for more financial security.
  • Training: Get training in business management and entrepreneurship to be ready before you start.
  • Legal status: Choose the most secure and suitable legal status for your situation.
  • Wage portage: Keep the benefits of being an employee while enjoying the freedom of being self-employed.

Thinking of moving from employee to freelancer, but worried about insecurity? Leaving a stable job to start a business comes with financial risks. According to a Statista study, nearly 57% of managers don’t dare to make the switch because of the lack of guaranteed income. Securing your transition to self-employment is therefore essential. That’s why Weepo provides you with the method to move from employee to self-employed while minimizing the risks. From how to leave a permanent contract intelligently, to using wage portage to become independent while remaining an employee, follow our guide for a secure transition from employee to freelancer.

Start by weighing the pros and cons

Before considering moving from employee to freelancer, start by comparing both situations so you can weigh the pros and cons of each status. As an employee, you have the advantage of financial security thanks to your monthly salary paid consistently on the same date. As a freelancer, your income depends directly on your effort and investment in your business — your earnings can therefore fluctuate over time.

To help you decide, explore this financial comparison table between employee and freelancer:

CriteriaEmployeeFreelancer / Self-employed
IncomeFixed monthly salaryVariable income depending on effort and investment
Income regularityFinancial security each month, salary paid at a fixed dateNo guarantee of regular income
In-kind benefitsPossible benefits (phone, car, etc.)No in-kind benefits provided
Paid leave5 weeks paid leaveNo paid leave
Social security coverageAffiliated to Social Security with good coverageAffiliated with SSI, offering limited coverage
Health insuranceSupplemental health insurance often paid by employerMust subscribe to private supplemental health insurance

Requesting a leave of absence for business creation

According to articles L3142-105 to L3142-116 of the French Labor Code, an employee may take a leave of absence to create or take over a business. This is an attractive option if you do not wish to immediately terminate your employment contract. To benefit from a leave of absence for business creation or takeover, you must prove 24 months of seniority (consecutive or not) in the company, and the maximum duration of the leave must be set by agreement or collective bargaining. If such an agreement does not exist, the maximum duration is one year, renewable for another year. To apply for the business creation leave, follow the procedure below:

  1. Submit your written request (by email or letter) to your employer at least two months before your proposed start date for the leave.
  2. Inform your employer of the intended leave date to start your business.
  3. Specify to your employer the nature of the activity you wish to undertake.

At the end of the process, your employer may approve the leave, refuse it, or postpone your requested start date.

💡Good to know: If your request for a leave of absence for business creation is refused, you may consider switching to part-time to dedicate more time to your project. The only condition is to have 24 months of seniority in the company or other companies within the group.

Opting for a contract termination eligible for unemployment

Mutual agreement termination (rupture conventionnelle)

A mutual agreement termination allows the end of a permanent contract by mutual consent between employer and employee. Neither party imposes the termination. However, this process requires a special procedure including a termination agreement and a precise timetable to be followed by both parties. It results in the employer paying a termination indemnity to the employee. Consequently, it qualifies the employee for unemployment benefits if they wish to start a business at the end of their contract.

Dismissal

According to the Labor Code, “Employees whose unemployment is involuntary are entitled to unemployment insurance. This condition is met, in particular, when employment ends as a result of dismissal (...).” (Decree no. 2019-797 of July 26, 2019, on unemployment insurance).

Therefore, dismissal is considered an involuntary loss of employment whatever the reason. The dismissed employee is eligible for unemployment benefits, which is an excellent opportunity for people who want to start a business and benefit from the unemployment allowance (ARE).

Resignation for a legitimate reason

If it is considered legitimate, resignation entitles you to unemployment benefits. Some legitimate resignation cases include:

  • Changing residence due to your spouse’s transfer;
  • Resignation due to domestic violence requiring a change of residence;
  • Resignation from a new contract before 65 days worked, after the end of a fixed-term contract, a dismissal, or a mutual agreement termination;
  • Resignation after three years of continuous affiliation, if a CDI is terminated by the employer within the first 65 days worked;
  • Failure in creating or taking over a business;
  • Unpaid salary by the employer despite a court decision;
  • Victim of a criminal act in the course of your employment.

Getting trained in entrepreneurship

To ensure an effective transition from employee to freelancer, consider training before launching your business. Here are the types of training to consider:

  • Accounting and financial management: Learn to manage your business finances and cash flow.
  • Project management: Learn to plan and manage your projects effectively.
  • Sales and marketing management: Learn how to market and sell your services and find clients.
  • Regulations: Understand your administrative and legal obligations, and choose the right tax/social security regime…

For additional support, consider joining professional organizations or entrepreneur communities for advice, information, and opportunities. Contact your local Chamber of Commerce (CCI) for more info.

Accessing financial support

To secure your project, you can access financial support offered by the state. Among these is the “prêt d’honneur” for business creation: a zero-interest, unsecured loan to help finance your business setup costs.

The Professional Training Fund (CPF) allows you to use your available training rights on your CPF account to pay for entrepreneurship training.

Also ask your region or town hall about any regional support available for freelancers wanting to invest in entrepreneurship training.

Opting for wage portage

To move from employee to freelancer while minimizing risk, consider wage portage. This model allows you to enjoy employee status while remaining independent in your activity. The way it works: you become a “portée salarié” for an umbrella company which handles all your admin tasks while you focus solely on your core work. Like a regular employee, you are covered by Social Security, make contributions towards unemployment insurance and your retirement, etc. The umbrella company pays you your earnings as a salary each month. You therefore have the guarantee of being paid even if you have no active projects or unpaid invoices. Wage portage is the right balance between independence, security, and freedom.

💡Good to know: Turn to our umbrella company Weepo and its triple T model—Transparency, Technology, and Tranquility—to enjoy the benefit of independence while retaining all the comfort of employment!

Work on your freelancer posture

To maximize your chances, you need to affirm your transition from employee to freelancer clearly:

  • Adopt an independent posture: You should shape a clear positioning for your service offer to introduce yourself to clients and win projects.
  • Rely on networking platforms: Use your professional experience as an employee to quickly find your first clients through these platforms.
  • Adapt your mode of working: As a freelancer, you must wear several hats—including business owner—which means managing and organizing your time efficiently.

📌Example productivity tool for freelancers:
To manage your day-to-day freelance work with ease, try Google Workspace and its comprehensive suite of connected apps to boost your productivity.

Key takeaways

You now have the guide to move from employee to freelancer with peace of mind. Here are the essential points to remember:

  1. Start by weighing the pros and cons of your current employee status versus becoming self-employed before making the change.
  2. Think about requesting a leave of absence for business creation from your employer or consider switching to part-time so you can devote time to your project without quitting your job.
  3. Favor a mutually agreed contract termination, dismissal, or resignation for a legitimate reason to qualify for unemployment benefits while building your first income as a freelancer.
  4. Train yourself in entrepreneurship so you can effectively run a business and maximize your chances of a successful transition.
  5. Secure funding for your project with state financial support such as the “prêt d’honneur” or your professional training fund (CPF).
  6. Be sure to choose your legal status wisely to secure your start—between micro-enterprise, sole proprietorship, or SASU.
  7. Opt for wage portage to keep enjoying the benefits of being an employee while being your own boss.

Additionally, check out our article test your business idea: the 7 most common ways for a successful transition.

Frequently Asked Questions (FAQ)

What are the benefits of being self-employed?

The main advantages of being self-employed include the freedom to choose your own projects, build your own service offering, and work with clients whose values match yours.

Is it better to be an employee or a freelancer?

Being an employee can be more beneficial as you get guaranteed monthly income and better social security coverage. The self-employed worker, on the other hand, may see fluctuating income, receives minimal social coverage, but enjoys more freedom.

How do you leave a permanent contract (CDI) smartly?

To leave a CDI wisely, use a mode of contract termination that allows you to receive unemployment benefits. Explain your reasons to your employer to leave on good terms and uphold a positive image of yourself.

Photo de profil de Lina MOREL

Responsable Marketing & Communication chez Weepo, je suis passionnée par l'animation du réseau et l'accompagnement de nos consultants. J'organise des événements parisiens et accompagne nos équipes régionales pour créer des moments d'échange enrichissants dans l'écosystème du portage salarial.