Labor loan between companies

Verified 12 March 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

A company may resort to labor loans by making its employees available to another user company that is facing recruitment difficulties in certain sectors, for example. What are the terms of the labor loan between companies? We're taking a look at the regulations.

The labor loan scheme allows an employer to make employees available on another company during a fixed duration.

The labor loan must, in principle, be non-profit. The lending company shall only invoice the user company for the salaries paid to the employee, the related social security contributions and the professional expenses reimbursed to the person concerned in respect of the making available. The lending company must not profit of the operation.

The loan of labor between companies must be at non-profit. However, there are exceptions:

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General case

In the following situations, the loan of labor to for-profit is authorized to:

  • Temporary work by interim agencies
  • Companies of timeshare
  • Dummy agency by the holder of the dummy agency license
  • Loan of athletes made available to the delegate sports federation as a member of a French team
  • Provision of employees to a trade union.

Loan of labor to a young company, an SME or a public interest or utility organization

A large company with at least 5,000 employees or group of at least 5 000 employees may make its employees available to a user company, with a view to:

  • Enabling it to improve the skills of its workforce
  • Fostering career transitions
  • Establish a business partnership or partnership of common interest.

The user company must complete at least one of the following conditions:

  • To be a public interest or public utility structure giving entitlement to tax benefits related to the company sponsorship
  • Credit memo under 8 years old of existence
  • To be a SME: titleContent from less than 250 employees.

Please note

The requirement of 5,000 employees does not apply where the loan concerns a general interest or public utility structure.

The loan term is limited to 3 years maximum.

The lending company may charge the user company an amount less than the cost of salaries, social security contributions and professional expenses incurred in connection with the transaction.

Warning  

This type of provision cannot be made within the same group.

  • Associations, works or organizations of general interest
  • Foundations or associations recognized as being in the public interest
  • Company Foundations
  • Approved public or private non-profit institutions of higher education or arts education
  • Religious or charitable associations authorized to receive donations or bequests and establishments of recognized cults of Alsace-Moselle
  • Associations governed by local law whose mission has been recognized as being of public utility
  • Electoral financing associations and accredited political party financing associations
  • Organizations approved for the creation of companies
  • Heritage Foundation

Companies must comply with certain obligations that differ depending on the situation.

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General case

Agreement of the employee

The labor loan requires prior agreement of the employee concerned.

This agreement is written in one endorsement to the employment contract signed by the employee.

The amendment to the employment contract must contain the following elements:

Agreement on making available

The lending company and the user company must sign a making available agreement.

The agreement shall contain the following information:

  • Duration of availability
  • Identity and qualification of the employee
  • Method of determining the salaries, social security contributions and professional expenses charged to the user company by the lending company.

Loan of labor to a young company, an SME or a public interest or utility organization

Agreement of the employee

The labor loan requires at least prior written agreement of the employee concerned. The law does not provide for any particular formalism.

Agreement on making available

The lending company and the user company must sign a make-available agreement for each employee.

The agreement shall contain the following information:

  • Duration and purpose of the labor loan operation
  • Identity, qualification of the employee and missions
  • Method of determining the salaries, social security contributions and professional expenses charged to the user company by the lending company.

Please note

If the employee refuses the offer to make him available, he cannot be penalized or dismissed or be subject to a discriminatory measure.

Information and/or consultation rules of the CSE: titleContent differ depending on the situation:

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General case

In the lending company, the employer must consult the CSE: titleContent prior to the implementation of a labor loan and inform it of the various signed agreements.

The ESC must also be informed if the position in the user company presents particular health or safety risks.

In the user company, the ESC must be informed and consulted before receiving employees made available in this context.

Loan of labor to a young company, an SME or a public interest or utility organization

The employer shall make available to the CSE: titleContent information on the number of supply agreements concluded and the types of posts occupied in the user company by the employees made available.

This information shall be entered in the economic, social and environmental database (BDESE).

During the loan period, the employment contract between the employee and the lending company shall not be terminated or suspended.

The employee continues to belong to the staff of the lending company and to benefit from the treaty provisions. Remuneration remains paid by the lending company.

The user company is responsible for the conditions of performance of the work during the provision.

At the end of the loan period, the employee returns to his original or equivalent job, without affecting his career development or remuneration.

Please note

The making available does not affect the protection enjoyed by a protected employee (example: a member of CSE: titleContent).

The loan of labor unlawful shall be punished by a criminal penalty of up to 2 years' imprisonment and a fine of €30,000 (amount increased to €150,000 for a legal person).

These penalties can go as far as:

  • 5 years' imprisonment and €75,000 fine in the following cases:
    • Offense committed against several persons
    • Offense committed against a person whose vulnerability or dependency is apparent or known to the perpetrator.
  • 10 years' imprisonment and €100,000 where the offense is committed in an organized gang.

Additional penalties may be imposed (e.g. prohibition of certain professional activities, exclusion from public procurement, publication of the judgment in newspapers).

Administrative sanctions may also be imposed (e.g. abolition of public aid, repayment of public aid already received, temporary closure of the company).

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