Welcome to our umbrella employment glossary
Here you will find definitions of the main terms to better understand this innovative model combining autonomy and security.
Umbrella employment glossary
A
01
Amendment (avenant)
Document modifying or supplementing an employment contract or assignment agreement (e.g. extending an assignment).
02
Autonomous professional activity
Type of activity carried out independently, but within the framework of umbrella employment.
03
Assignment agreement
Document setting the terms of the service between the umbrella employee, the client company and the umbrella company.
04
Personalised support
Specific follow-up offered by some umbrella companies to help with business or administrative development.
B
01
Payslip
Monthly document provided by the umbrella company detailing the umbrella consultant's pay.
02
Net profit
Revenue remaining after deduction of contributions, management fees and business expenses.
03
Skills assessment (bilan de compétences)
Process for analysing your professional skills and motivations, often offered as part of umbrella employment.
04
Billing base
Amount on which social contributions and gross salary are calculated.
C
01
Umbrella CDD / CDI
Fixed-term and permanent employment contracts specific to umbrella employment.
02
Revenue (chiffre d'affaires, CA)
Total amounts invoiced to clients before deductions.
03
Non-solicitation clause
The end client's commitment not to hire the consultant directly, bypassing the umbrella company, for a set period.
04
Activity account
Document or interface tracking income (client invoices) and outgoings (salary, expenses…).
05
Non-compete clause
Contractual clause limiting the umbrella employee's activity after their assignment ends.
06
End client
Company receiving the umbrella consultant's services.
D
01
Pre-hiring declaration (DPAE)
Legal obligation before hiring an employee, handled by the umbrella company.
02
Waiting period (délai de carence)
Waiting period required before signing a new contract with a former employer.
03
Client payment terms
Time between the invoice date and receipt of payment from the end client.
E
01
Client company
Organisation contracting with the umbrella company to benefit from the consultant's services.
02
Professional review
Mandatory review every two years between the umbrella employee and the umbrella company to take stock of their career.
03
Umbrella employee extranet
Online platform where the consultant accesses their contracts, invoices, payslips, etc.
F
01
Business expenses
Expenses incurred during the assignment that can be reimbursed (transport, meals, equipment…).
02
Management fees
Commission charged by the umbrella company to cover its services
03
Reserve fund
Legal obligation to build up a financial reserve equal to 10% of base salary to cover end-of-contract allowances.
G
01
Administrative management
All the tasks handled by the umbrella company: invoicing, declarations, client reminders…
02
GUSO / URSSAF
Bodies that collect social contributions (the umbrella company handles them for the consultant).
03
Financial guarantee
Legal obligation for umbrella companies to ensure salaries are paid even in the event of financial failure.
H
01
Fees (honoraires)
Term used for payment for services in an independent context.
I
01
End-of-contract allowance
Sum received at the end of a fixed-term contract (10% of gross pay).
02
Paid leave allowance
Financial compensation for leave not taken, generally 10% of gross salary.
03
Legal independence
The umbrella employee's ability to negotiate their assignments while being legally bound to the umbrella company.
04
Client introduction allowance
Sum owed to the consultant when a contract ends, to compensate for the value of the client network they developed.
L
01
Assignment letter
Document specifying the operational terms of the assignment (objectives, schedule, deliverables…).
02
Pay smoothing
Technique for paying yourself the same salary each month, even when revenue fluctuates, using reserves built up in the activity account.
M
01
Assignment
Service carried out by the umbrella employee for a client.
02
Net amount payable
Amount paid into the employee's account after all deductions.
03
Mandatory company health insurance
Supplementary health insurance to which the umbrella employee is automatically affiliated.
N
01
Expense report
Document supporting business expenses.
P
01
Umbrella employment (portage salarial)
Hybrid status between employment and entrepreneurship.
02
Company savings plan (PEE)
Employee savings scheme available through some umbrella companies.
03
Provident cover (prévoyance)
Supplementary insurance covering certain risks such as sick leave, disability, etc.
04
Business prospecting
The consultant's own efforts to find new clients independently.
05
Business introduction bonus
Contractual obligation paid to the umbrella employee for prospecting and bringing in their own assignment (generally 5% of base salary).
06
Paid leave provision
Mechanism whereby 10% of the payroll is set aside each month to fund the consultant's holiday periods.
07
Cross-border umbrella employment
Specific support for consultants living in France but working for clients based abroad (currency and VAT management).
04
Business prospecting
The consultant's own efforts to find new clients independently.
R
01
Legal minimum pay
Monthly minimum set by the umbrella employment collective agreement.
02
Professional liability insurance (RCP)
Mandatory insurance covering damage related to the consultant's services.
03
Negotiated termination (rupture conventionnelle)
Way of ending an umbrella permanent contract, giving entitlement to unemployment benefits under certain conditions.
S
01
Base salary
Fixed part of pay, excluding expenses or bonuses.
02
Salary simulation
Estimate of net income based on an invoiced amount.
03
Hybrid status
Mixed legal status between self-employed and employee, specific to umbrella employment.
04
Assignment follow-up
Regular exchanges between the consultant, the umbrella company and the client company to assess the progress of the assignment.
T
01
Average daily rate (TJM)
Price invoiced per day of assignment. Used to calculate monthly revenue.
02
Effective working time
Time actually spent delivering services (basis for salary calculation).
03
Time between assignments
Period between two assignments when the umbrella employee remains legally employed without immediate activity.
04
Contractual triangulation
Specific mechanism whereby the umbrella employee signs an employment contract with Kaiporting, while Kaiporting signs a service contract with the end client.
V
01
Validation of prior learning (VAE)
Mechanism allowing the umbrella employee to have their skills recognised as a qualification.
01
Total transparency
Our management fees (4%) are among the most competitive on the market.
02
High net income guarantee
More than 60% of your revenue comes back to you.
Why choose
Kaiporting?
03
Simplified management
We handle your admin so you can focus on your business.
04
Dedicated support
Benefit from personalised support at every step.
Umbrella employment terms: your questions
What is the financial reserve in umbrella employment?
The financial reserve is a sum set aside for umbrella employees on permanent contracts. It represents 10% of the assignment's base salary and is used to pay periods without an assignment. On a fixed-term contract, it is replaced by the 10% end-of-contract allowance.
What is the business introduction allowance?
The business introduction allowance rewards the umbrella employee's prospecting work. Set by the umbrella employment collective agreement, it equals 5% of gross pay. For a base salary of €3,000 gross, it therefore represents €150 per month.
What is the PMSS in umbrella employment?
The PMSS, the monthly social security ceiling, is the benchmark for the minimum umbrella salary. It is €4,005 in 2026. A junior umbrella employee must receive at least 70% of the PMSS, a senior 75% and a consultant on a days-based package 85%.
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