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Preperation for Transferring 25 Employees to France for Business

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The number of companies from around the world have expanded into France in the last few years, particularly in the electronics and electronic component industry. However, French laws at the same time have tended towards anti-immigration, which has disadvantaged foreign workers seeking employment in France, particularly during the mandate of the political right (Weigand, 2011). The government of President Hollande has loosened the nationalist control on labor somewhat and it is now easier for Viva Electronics to transfer their employees to France. It is now possible to work in France if the company can prove that the employees possess specialist skills. In addition, since the company is registered in France as well, the employees can transfer them to France since they can obtain work permits much easier than foreign companies can (Weigand, 2011). Since the employees the company is sending to France are specialists with excellent academic credentials, there does not seem to be a reason to believe that they will be denied work permits. Finally, the research study also set to identify opportunities and risks that would come with expanding the company in France. By focusing on the economic situation in France, French labor laws, and the country’s socio-cultural environment, the report seeks to provide a detailed view of what the employees should expect. The information was collected through primary and secondary research to gain insight into the country’s general situation and current information. As a senior member of the European Union, France is one of Europe’s and the world’s leading economies. The government maintains a strong presence in some industries like public transport, power, and defense, which means that the electronics industry will have to make with some government regulation (Deloitte, 2012). The country is also ranked 34th with regards to ease of doing business. In France, labor costs increased from 115.111 index points in 2012 to 117.40 index points in the current year. From 1960 to 2012, the labor costs index points averaged at 62.71 with its lowest point in 1960 at 9.66 and its highest point in 2013 at 117.40 (Deloitte, 2012). In the 2nd quarter of 2013, salaries and wages appreciated by 1.0%, while the same had only increased by 0.1% in the first quarter. The labor cost index appreciated by 2.2% in year-on-year changes for salaries and wages (Deloitte, 2012). The hours worked did not change with year-on-year changes at 0.0%. Wages appreciated in the electronics industry by 1.2% in the 2nd quarter of 2013, while the year-on-year changes were +2.5%. Wages, however, decreased in storage and transportation, which reduced the logistics cost (Deloitte, 2012).In France, the Parliament determines taxation via a vote on the yearly budget. Parliament determines the quasi-taxes and taxes, as well as rates, which are to be applied. The tax habitation is a local property tax that is charged to all living in a French residential property (Carroll, 2012). The tax foncière is another local tax paid by those who own French homes. In addition, residents of France pay income tax on their worldwide tax, while non-residents have to file annual income tax returns fro income made from the property in France.