Which wage portage contract?
Are you an independent consultant, freelancer, or executive in career transition looking for an alternative to the auto-entrepreneur status? Discover wage portage, an innovative professional solution designed to provide you with a secure framework that allows you to work autonomously. With this status, you no longer have to face the fluctuations in your income or other risks associated with freelancing on your own. Thanks to a simplified employment contract, social protection rights, and administrative support provided by an umbrella company, the status of an employed ‘porté’ offers a concrete solution to your needs. Which type of contract should you choose to start with wage portage? Fixed-term, permanent, or a work-study contract? Let’s explore the options.
What is wage portage?
Wage portage is a solution offered to individuals who take on freelance assignments, allowing them to enjoy the same benefits as salaried employees. Indeed, while independent professionals can manage their projects and clients with complete freedom, they still have to deal with various administrative and accounting tasks as part of their business.
Moreover, they do not have access to the benefits typically associated with traditional employment, such as job security, unemployment benefits, comprehensive health insurance, or professional expense reimbursements. While the auto-entrepreneur status suits some professionals well, others might prefer to maintain their revenue stream while enjoying additional advantages, which is exactly what wage portage offers.
How it works?
Wage portage is based on a tripartite relationship between the umbrella company, the independent professional, and the client company. The independent professional continues their usual client outreach and service delivery. Instead of invoicing the client company directly, the umbrella company takes charge of billing, deducts a percentage from the revenue generated by the assignment, and then pays the independent a monthly salary. The professional is linked to the umbrella company by an employment contract, thereby obtaining the status of an employee.
In other words, the independent professional changes their status by joining the umbrella company while still running their business as they see fit. The umbrella company acts as an intermediary between the professional and the client, handling various administrative and accounting procedures as well as salary payment. As a result, the entrepreneur benefits from employee status and all its associated advantages for the duration of their contract with the umbrella company.
Wage portage or another status?
There are various legal statuses available for conducting professional activities as an independent worker.
SASU or wage portage
The SASU (Single-member Simplified Joint-stock Company) is a form of sole proprietorship set up by a single shareholder who owns all the company’s capital and serves as its president. The difference between SASU and wage portage is that wage portage allows the independent professional to work autonomously while still enjoying the status of an employee.
Auto entrepreneur or wage portage?
The auto-entrepreneur and wage portage are two different statuses for operating as an independent professional. An auto-entrepreneur has their own tax regime, with contributions calculated based on the revenue generated.
Freelance or wage portage?
The statuses of freelancer and wage portage can also be compared; however, they differ in that a freelancer offers services to multiple clients, managing their own business independently. Freelancers are responsible for their own social and tax protection as well as for managing their business.
What are the benefits of wage portage?
Being a freelancer provides great daily freedom, but it also comes with drawbacks such as working in relative isolation and having to perform various administrative and accounting tasks—like invoicing and managing contributions—without the benefits typically seen in traditional employment. Instead of giving up on their business, professionals can opt for a wage portage contract to change their status and enjoy numerous advantages.
More safety in the context of its activity
A hallmark of independent work is the uncertainty about the future and the smooth progress of professional projects. Indeed, if an independent professional’s activity slows down, it is rare to have enough resources to tide over the period until new clients are found or a new opportunity is pursued. This insecurity can be challenging and complicates future planning.
A wage portage contract provides a genuine sense of security. Being able to benefit from unemployment insurance, contribute to retirement funds, have access to training opportunities, or even take sick leave brings considerable comfort and security. Planning for the future becomes much easier, and each difficult period can be met with greater peace of mind, allowing professionals to perform their assignments with increased confidence and to plan long term both personally and professionally.
A real time saver
Time is a precious resource when running your own business. Administrative and accounting tasks such as invoicing, filing declarations, and paying contributions require a significant time investment, which is generally uncompensated. With a wage portage contract, you can finally free yourself from many complex tasks and focus fully on your assignments and growing your business, including client outreach. The umbrella company handles many responsibilities, alleviating you of numerous obligations.
Contribution to URSSAF
The relationship between URSSAF and wage portage is frequently discussed before embarking on this path. As an employee under wage portage, the individual is subject to the same fiscal and social obligations as any other employee, contributing to URSSAF for social security, unemployment insurance, supplementary pensions, and more.
Access to unemployment
Access to Unemployment Benefits and Social Rights
Access to unemployment insurance is often seen as one of the major advantages of a wage portage contract. It allows an independent professional to accumulate unemployment rights based on the duration of their work periods and, consequently, to benefit from them in the event of reduced activity. This ensures the security of continuing to receive an income during temporary difficulties while focusing on client acquisition and business revival.
Beyond unemployment insurance, employees under wage portage enjoy the complete range of standard social rights, including paid leave and retirement benefits, just like traditional employees. Additionally, they have access to professional training, which is a valuable opportunity to enhance their skills and expertise. Of course, there are many other advantages to wage portage.
What type of wage portage contract is possible?
Wage portage contracts can take various forms depending on what the company offers and the opportunities the independent professional is seeking.
The Legal Framework and Conditions for Accessing Wage Portage
The legal framework for wage portage is precisely defined by the Labor Code, particularly in articles L1254-1 to L1254-31. Access to this system is subject to certain conditions, such as a minimum qualification equivalent to a Bac+2 degree or three years of professional experience. It is imperative to establish two types of contracts: an employment contract between the assigned employee and the umbrella company, and a portage agreement—a commercial service contract between the umbrella company and the client company. This agreement must detail the modalities for executing the service by the assigned employee.
The employment contract linking the assigned employee to the umbrella company can be either a fixed-term contract (CDD in wage portage) or a permanent contract (CDI in wage portage). The choice of contract should be adapted to the situation, depending on what the company offers and the opportunities the independent professional wishes to pursue.
It is important to distinguish this setup from temporary work or labor leasing, where a temp agency assigns tasks. In wage portage, the assigned employee selects their own assignments and negotiates directly with clients, retaining a central role in managing their work, organizing their activities, and ensuring the proper execution of their services.
Fixed-term wage portage employment contract
A fixed-term wage portage contract (CDD) is a viable option that allows one to test wage portage for a limited period and take time to evaluate before fully committing. The relevant provisions of the Labor Code apply regarding the probation period, compensation for paid leave, conditions for early termination, and end-of-contract indemnity. A fixed-term contract in wage portage can be renewed twice, with a minimum duration stipulated that cannot exceed 18 months, including renewals. Additionally, this type of contract must include clauses defining the relationship between the umbrella company and the assigned employee, as well as clauses regarding the execution of the wage portage service.
The employment contract in wage portage for an indefinite period
A permanent wage portage contract offers the same advantages as a standard permanent (CDI) contract in a company. As the name suggests, its duration is indefinite, allowing for a long-term partnership. In the framework of a wage portage contract or CDI, essentially the same rules that apply to a conventional permanent contract are used. The contract must also include details such as:
- The method for calculating the payment of the salary, commission fees, social and fiscal charges, management fees, and professional expenses, if applicable.
- The method for deducting professional expenses.
- A description of the skills and qualifications of the assigned employee.
- The system for accruing, taking, and paying for paid leave.
- The duration of the probation period.
- The identification of the supplementary pension fund and the insurance organization associated with the umbrella company.
- Etc.
Periods without assignments from a client company are not remunerated under a permanent wage portage contract.
The professionalization contract
Finally, it is also possible to opt for a work-study contract within wage portage. This measure is implemented on an experimental basis until December 31, 2023. In this case, the recruited employee is supported by a tutor responsible for their guidance, and this tutor must have at least two years of professional experience.
Which contract to choose?
Apart from the work-study contract, which targets a very specific audience—namely, students in training—independent professionals typically must choose between a fixed-term wage portage contract and a permanent wage portage contract. If you are confident in your decision and wish to fully benefit from all the advantages of wage portage, the permanent contract (CDI) is most likely the ideal choice. However, if you still have doubts about how wage portage works or about the selected umbrella company, a fixed-term contract (CDD) is a good way to test the waters before making a final decision. It can also be renewed, or you could later consider transitioning to a permanent contract if desired.
Wage Portage: A Hybrid Solution Between Employment and Independence
Wage portage is presented as a hybrid solution, striking a balance between traditional employment and independence. This mechanism is based on a tripartite model in which a client company engages a professional who works as an employee assigned by an umbrella company. Thus, the professional benefits from the advantages of employee status—such as robust social protection (including health insurance, retirement, and mutual coverage)—while maintaining significant autonomy in managing their assignments and business development. Wage portage therefore offers an attractive alternative for independent professionals looking to combine security with professional freedom.
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