Umbrella company and maximum duration of service provision

Is there a time limit for wage portage? What does the law say?

Wage portage is a status that offers many advantages, but it is also subject to strict regulations. Indeed, Article L254-4 of the Labor Code sets a maximum duration of 36 months for wage portage assignments.

This rule aims to ensure balance between portage flexibility and protection of the carried employee. Beyond this period, the assignment must be interrupted or renegotiated, allowing for a reassessment of collaboration conditions.

Labor law expressly prohibits portage services performed at the client from being intended to:

• Replace a striking employee;
• Perform work classified as dangerous, such as those listed in Article L. 4154-1, except with specific exemption.

Carried employee: can one remain in wage portage indefinitely?

Working in wage portage offers great flexibility to independent professionals. Indeed, the service provider can benefit from either a permanent employment contract (CDI) or a fixed-term contract (CDD).

The maximum duration of a wage portage assignment thus depends on the type of service provision contract:

• CDI: the total duration of assignments performed for the same client cannot exceed 3 years (36 months), knowing that the carried employee can work for one or several client companies.
• CDD: rules applicable to fixed-term employment contracts limit their total duration to 1.5 years (18 months), in accordance with the sector's collective agreement.

Be careful if you sign a fixed-term contract with an uncertain end date: ensure that the contract specifies the minimum duration of the service and indicates the event that will mark its end.

Client company: what is the maximum duration of a commercial contract?

The duration of a service contract between a client company and a portage company is set by the parties, with a maximum of 3 years. However, if the end of the assignment is uncertain, a minimum duration must be specified in the contract clause. This precaution guarantees certain legal security for both parties.

Good news: even if the client ends their collaboration with the portage company, your employment contract remains valid. Thus, you keep your position within the portage company.

Derogations from the maximum duration

There are special cases where the maximum duration set by law does not apply in wage portage.

• Activities of different nature: if you perform tasks of different nature for the same client (for example, web writer then project manager), the total duration of these assignments will not be limited.
• Assignments for multiple clients: wage portage allows you to work for several clients simultaneously, without the total duration of your interventions being subject to a ceiling.

And after wage portage?

At the end of your wage portage contract, several options are available to you:

• Continue with portage: you can continue to benefit from the advantages of wage portage by carrying out new assignments for other clients.
• Create your company: if you want more autonomy, you can create your own company and bill your services directly.
• Become an employee: if the collaboration with the end client has proven fruitful, they may offer you an employment contract.

Independent worker: which status to choose after portage?

At the end of your wage portage contract, you have the possibility to choose among several legal statuses to create your own company:

• Individual Enterprise (EI): this is the simplest form, but with unlimited personal liability.
• Single-Member Limited Liability Company (EURL): this status limits your liability as an entrepreneur to the amount invested in the company.
• Single-Member Simplified Joint Stock Company (SASU): this legal form offers you great autonomy and is distinguished by its flexibility and simplified management.

Good to know: the first two statuses can benefit from the micro-enterprise regime under specific conditions.

End of CDD: support mechanisms

The termination of a wage portage contract is not an end in itself. On the contrary, it's an opportunity to take advantage of new opportunities. Indeed, in case of cessation of activity, you can benefit from support mechanisms put in place by Pôle emploi. If you meet the required conditions, you can claim financial aid and support to facilitate your professional integration, whether in wage portage or another field.

And that's not all. If you were previously affiliated with unemployment insurance, you can receive benefits based on your period of affiliation and previous remuneration.

Your permanent contract ends: what subsidies?

Do you have questions about what happens in case of mutual termination? Don't panic! Know that you can claim return-to-work allowances (ARE), subject to meeting the eligibility conditions set by Pôle emploi. This system, put in place to secure employees' professional path, offers you a safety net during your professional transition.

At the end of your assignment, the wage portage company will provide you with a complete file including your:

• Work certificate;
• Final settlement;
• Pôle emploi certificate.