> Something else to note is also employment laws, which are way more strict in France and makes it either extremely expansive or just impossible to fire someone, the cost of hiring seems to be way too high for startups, which are business why high risks already.
No it's not, first there's the trial period for permanent employees where you can fire at will and then once it's over, you can still do it but you need to motivate your decision & respect the process.
Or you mean social insurance? Same story, you pay it from the money your employer pays you, its just that you don't do it by yourself - company ha to do it for you by law.
I understand the motivation - people would be properly pissed off if they realized state is taking 50-70% of their income prior to letting them get the rest. And then they are taxed more with VAT, housing, fuel etc. Of course there are services given back, in some cases very substantial and helpful (and in some cases very wasteful and useless), but never forget the fact that you pay for it with most of your income, like it or not.
The trial period go both way: the employee can choose to leave very easily. We had one such case where I'm working, the employee left before the 6-months period was finished.
In addition to firing, it exists legal possibilities to cancel the employee/employer contract if both side agree on it ("rupture conventionnelle"), if I've understood the mechanism.
Yes exactly, that's pretty fair, if the employer can fire at-will, the employee can leave quickly as well, it's flexibility on both sides.
> In addition to firing, it exists legal possibilities to cancel the employee/employer contract if both side agree on it ("rupture conventionnelle"), if I've understood the mechanism.
Yes indeed that's exactly that.
And still you can fire someone. And now, with recent reforms, you know exactly how much it will cost since it is a fixed grid.
This makes it very expensive for an employer to pay their employees well, and explains very well why salaries are so low in France.
Something else to note is also employment laws, which are way more strict in France and makes it either extremely expansive or just impossible to fire someone, the cost of hiring seems to be way too high for startups, which are business why high risks already.