Overview of Professionalization Contract

PeopleSoft Global Payroll for France delivers a number of rules to manage minimum salary requirements and contribution exemptions for payees with professionalization contracts, including:

  • Minimum wage controls: Global Payroll for France controls that payee compensation falls within the statutory minimum wage (SMIC) based on age and educational level. For example, if an employee is under 21 and doesn't have a professional baccalaureate, he/she qualifies for at least 55% of the SMIC. And if the employee is under 21 and has, at a minimum, a professional baccalaureate degree, he/she qualifies for at least 65% of the SMIC.

  • Contribution exemptions: Global Payroll for France delivers two social security scheme codes—code 456 and code 457 (for Alsace Moselle)—to manage contribution exemptions. To view the rates and percentages associated with these schemes, access the URSSAF Rates and URSSAF Additional Setup pages.

    Note:

    Contribution exemptions associated with the professionalization contract apply only to the portion of the salary that falls within the SMIC.

    Note:

    To trigger the contribution exemptions associated with these social security codes, specify CDP (limited professionalization contract) or CPI (unlimited professionalization contract) as the contract type on the Contract Type/Clauses page in PeopleSoft HR, and then enter either code 465 or 457 in the Social Security Code field for each qualified payee.

    See Understanding URSSAF Contributions.

  • Limitation on benefits in kind:

    Benefits in kind cannot constitute more than 75% of the minimum wage. In other words, employees with professionalization contracts must receive at least 25% of their compensation in monetary form.

  • Warning messages to enforce age limits for assigning professionalization contracts.

    The system generates a warning message if a social security code for professionalization contracts is assigned to an employee who is 25 years of age or over and below 45.

  • Warnings to prevent exemptions from extending beyond the contract end date.

    At the end of the professionalization period in an unlimited contract, the specific compensation rules and social security exemptions associated with the contract must be stopped and the payee can then continue employment under a new social security scheme. To prevent the conditions of the professionalization period from extending beyond the contract end date, Global Payroll for France issues a warning to the user to assign payees to a new social security scheme. This warning is generated when the current pay period end date exceeds the contract end date.

    Note:

    In the case of a limited professionalization contract, the payee cannot continue working under a new contract when the contract ends.

Note:

All rules related to the professionalization contract have an effective date of 1 October 2004.

Note:

The professionalization contract replaces the qualification, orientation, and adaptation contract rules delivered in earlier versions of Global Payroll for France.