International mobility: what is a local contract?

The local contract: what is it exactly?

A local contract is simply an employment contract signed directly with a company based in your host country. Unlike a secondment or a traditional expatriation, this type of contract fully integrates you into the local professional system.

Here are its main features:

Local salary: Your pay is aligned with the standards of the host country. This can be a pleasant surprise in countries with a low cost of living, but potentially disappointing in high-cost regions.

Social security affiliation: You are covered by the local social protection system. In practice, your healthcare, unemployment insurance, and pension rights are managed according to local laws.

No return guarantee: Unlike an expatriation contract, the company is under no obligation to reintegrate you when you return.

With a local contract, you are treated like any other employee in the country. While this may seem straightforward, it carries significant implications you need to fully understand.

The specificities of a local contract

A local contract is not just a change of address on your employment paperwork. It comes with specific conditions that can impact your daily life as an expatriate.

Affiliation to the French social security system

As an employee under a local contract in France, you are integrated into the French social protection system. This means:

You contribute to and benefit from social security (health insurance, pension, unemployment).

You have access to medical care at very affordable rates.

You accumulate retirement rights under the French system.

Good news: France is recognized for its generous social system. However, social contributions can feel quite heavy compared to countries with lower rates.

Salary aligned with French standards

Your salary is determined according to local pay scales, often defined by collective bargaining agreements. In France, the SMIC (minimum wage) guarantees a baseline income, but actual pay varies greatly depending on the role and industry. Make sure to check whether perks such as meal vouchers or housing support are included.

Working conditions

France stands out for its strict labor regulations:

Standard workweek limited to 35 hours (with some exceptions).

Generous paid leave: at least 5 weeks per year, often more in certain companies.

Strong protection against unfair dismissal.

Tip: Before signing, take time to assess your needs and, if possible, consult a lawyer or international mobility advisor. A well-negotiated contract can make all the difference!

What it means for expatriates working in France

Signing a local contract in France can be an excellent opportunity, but it requires a good understanding of the professional, social, and personal implications.

As mentioned earlier, working under a local contract in France gives you access to a highly protective system, with advantages such as excellent healthcare coverage, generous paid leave, and greater job stability. These benefits explain why France is such an attractive destination for expatriates.

That said, there are challenges to be aware of.

The challenges of a local contract

High taxes and social contributions: France is known for its significant payroll deductions, which may reduce your net salary more than expected if you’re used to lower-tax countries.

Cultural and administrative adaptation: From paperwork to complex procedures—and even the language barrier—your first months in France can be overwhelming. Fortunately, specialized services like Homat can make your transition easier.

Cost of living: Certain areas, especially Paris and its surroundings, are expensive. Negotiating a salary that allows you to live comfortably is essential.

What to check before signing

Salary: Is it aligned with the local cost of living? Does it include benefits like housing support or meal vouchers?

Social protection: Understand what the French social security system covers and whether you’ll need complementary insurance.

Contract terms: Review clauses on leave, internal mobility, and termination conditions.

Tip: Speak with colleagues or other expatriates who have already signed a local contract in France. Their feedback can help you anticipate aspects you might not have considered.

Settling in with peace of mind thanks to Homat

Moving to a new country is often a mix of excitement and stress, especially when it comes to housing, furnishing, and sometimes even learning a new language. This is where services like Homat can transform your arrival.

A well-furnished home from day one

When signing a local contract in France, finding housing can quickly become a headache due to administrative hurdles and the complexity of the French real estate market. With Homat, the solution is turnkey: you can rent furniture and appliances adapted to your needs, without worrying about transport or assembly. Whether staying six months or several years, you benefit from a comfortable living space from day one.

Flexibility designed for expatriates

Expatriates on local contracts often need flexibility, whether for the duration of their stay or unforeseen changes. Homat understands this and offers adjustable plans, perfectly suited to your situation:

Need to move? You can easily transfer your furniture.

Mission ending earlier than expected? No problem—Homat adapts to the actual length of your stay.

Hassle-free support

Between administrative paperwork and your new role, you already have plenty on your plate. Homat handles all logistics related to your furniture: delivery, installation, removal, and even appliance replacement in case of breakdown. The result? A stress-free move and a smooth transition into your new life in France.