Help Center › Understanding umbrella employment
Understanding umbrella employment
The basics to decide whether umbrella employment (portage salarial) fits your IT consulting project.
The basics
What is umbrella employment?
Umbrella employment (portage salarial) lets an independent professional carry out assignments for their own clients while being an employee of an umbrella company. It involves three parties:
- The consultant finds the assignment and negotiates the rate.
- The client company signs a service agreement with the umbrella company.
- The umbrella company invoices the client, employs the consultant and handles the paperwork.
Each month, the invoiced revenue is paid back to the consultant as a salary, after management fees and social contributions. Learn more: how umbrella employment works.
Is umbrella employment legal?
Yes. Umbrella employment has been recognised by French law since 2008. It is governed by the French Labour Code (articles L1254-1 and following) and by the 2017 collective agreement for umbrella employees. Every umbrella company must hold a financial guarantee that secures salary payments.
Who can work through umbrella employment?
It is designed for professionals with real expertise who can find their own clients. You need:
- A two-year higher education degree (Bac +2) or at least three years of experience in the field
- Expertise to deliver services, mainly intellectual ones
- The autonomy to prospect, negotiate your rates and organise your time
Personal services and most regulated professions (lawyers, doctors) are excluded by law.
Is it suitable for every IT profession?
Yes, it is particularly well suited to IT: web and mobile development, DevOps, cybersecurity, data science and AI, software architecture, cloud, project management, support, systems and networks. Discover the IT professions Kaiporting supports.
Comparing with other statuses
Umbrella employment or micro-business: which to choose?
A micro-business pays lower contributions, but you handle invoicing, payment chasing and filings alone, with no unemployment insurance. Umbrella employment deducts full contributions and management fees; in return you are an employee, with unemployment insurance, the general pension scheme, health insurance, income protection and no paperwork.
Compare statuses with our status comparator.
What is the difference with temping?
- Umbrella employment: you find your client, set your rate and organise your time.
- Temping: the agency places you on an assignment and sets the conditions.
Umbrella employment keeps you in control of your assignments, rates and schedule.
Do I keep my independence?
Yes. You choose your assignments, clients, rates and working pace. You are independent in your activity while enjoying the security of employee status.
Other Help Center topics
Keep reading in another topic.
The six steps, the simulation, the contracts and the documents to launch your activity.
How net salary is calculated, the 4% management fee, payment date and minimum pay.
Meals, travel, transport and equipment: what you can claim and how.
Finding assignments, managing several clients, working abroad and the end of an assignment.
Social security, pension, health insurance, income protection, unemployment and liability.
Signing in and using your space: assignments, income, documents, availability.
Your dedicated account manager, assignment follow-up, events and how to reach us.
