What does a company risk in case of illegal work?

Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)

You must declare to the Urssaf everything work done by yourself or by your employees. If you do not do so or declare only part of it, this work is considered illegal. It is also called work in the "black" or else hidden work. The controls carried out by the Urssaf are common. You risk sanctions criminal and financial. You are also responsible for the illegal work done by your subcontractors.

Several situations may constitute illegal work.

Illegal work in your company
  • You are totally or partially concealing a salaried job (examples: don't declare an employee, you do not report the number of hours actually worked). This is about hidden work by concealment of salaried employment.
  • You do not report an activity (example: you are not registered in RCS: titleContent or at RNE: titleContent). This is about hidden work by concealment of activity.
  • You put to disposition of your employees by making benefits. This is a loan of labor (or bargaining) illegal.
  • You accumulate jobs without respecting the rollup rules (example: you exceed the maximum number of hours worked allowed).
  • You employ foreigner workers which have no work permit (visa, residence card, etc.).
  • You make a false statement to obtain replacement income (partial activity, retirement, disability, etc.).

Please note

In very exceptional cases, the performance of the work, although carried out outside the legal framework, is not penalized, if it is work that must be carried out in an emergency (risk of imminent accident or need to provide assistance to people).

Illegal work of your subcontractor
You are responsible

You are responsible for the illegal work committed by your subcontractor.

You have a duty of care to your subcontractor. It's up to you to ask him for proof of his declarations of activity.

If the contract is greater than €5,000 HT: titleContent, you must ask him every 6 months for a attestation of vigilance. It provides you with proof that it has declared its activities and its employees.

You risk the same penalties only if the illegal work is carried out by your company.

What kind of acts are illegal?

Your subcontractor is in an illegal employment situation in the following cases:

  • It completely or partially conceals a salaried job (examples: it does not declare an employee, it does not declare the number of hours actually worked). This is about hidden work by concealment of employment employee.
  • It does not declare an activity (e.g. it is not registered in RCS: titleContent or at RNE: titleContent). This is about hidden work by concealment of activity.
  • He puts to disposition of its employees by making benefits, it is a loan of labor (or bargaining) illegal.
  • He cumulative employment without respecting the rollup rules (example: it exceeds the maximum number of hours worked allowed).
  • He employs foreigner workers which have no work permit (visa, residence card, etc.).
  • He makes a false statement to obtain unduly replacement income (unemployment benefits or social benefits).

Administrative penalties

In the event of an inspection, you risk the following administrative penalties:

  • Abolition of State aid (e.g. exemptions from social security contributions or aid for hiring an apprenticeship contract) for up to 5 years
  • Repayment of public aid already collected over the last 12 months
  • Exclusion of public contracts for a maximum period of 6 months
  • Closure up to 3 months decided by the prefect with confiscation of professional equipment

Warning  

In case of recurrence during the Last 5 years, a financial penalty is imposed on the principal. Its amount shall be equal to all reductions or exemptions from contributions or contributions which it has received in respect of remuneration paid to all its employees over the period in which the hidden work situation was established.

Administrative sanctions are different and independent of criminal sanctions that may be imposed by a court.

Adjustment of contributions

The adjustment consists in paying the social contributions that you should have paid, with a surcharge on amounts.

The adjustment shall be calculated on a flat-rate basis, fixed at 25% of PASS: titleContent.

The flat-rate basis shall be €12,015 in 2026.

The amount of the contributions shall be increased by 25% in the event of a finding of the offense of concealed work by concealment of activity or employment.

The increase is greater if the illegal work relates to one of the following cases:

  • Several people are employed
  • There is a minor (who should be in school)
  • A person is vulnerable or dependent
  • The offense is committed in an organized gang.

It is then fixed to 40%.

The adjustment covers all social contributions and contributions, except unemployment insurance.

You have a maximum of 5 years to pay the adjustment.

You benefit from a 10-point reduction in the mark-up rate if you pay the adjustment within one month of the formal notice, or if you submit a payment schedule that is accepted, within the same period of 30 days.

If you reoffend within 5 years of a 1er adjustment, you must pay an increase in the following proportion:

  • 45% if the mark-up on 1er turnaround was 25%
  • 60% if the mark-up on 1er turnaround was 40%.

Please note

If the employer can provide actual data on hidden wages paid to employees, then the adjustment applies to that actual data.

In the event of conviction, the correctional court pronounces criminal sanctions.

The convicted person shall be punished by a fine and/or imprisonment. In some cases, it may be subject to one or more additional penalties.

Fine and imprisonment

Perpetrators of the offense of illegal labor may be imprisoned for up to 3 years and €45,000 fine (€225,000 if it is a business).

If the concealed work concerns a minor or a vulnerable or dependent person, the penalty shall be up to 5 years' imprisonment and €75,000 fine (€375,000 if it is a business).

If the concealed work is committed in an organized gang, the penalty is 10 years' imprisonment and €100,000 fine (€500,000 for a business).

The loan of labor illegal and the bargaining shall be punished by 2 years' imprisonment and €30,000 fine (€150,000 for a business).

If the illegal labor loan and bargaining are carried out in an organized gang, you risk 10 years in prison and €100,000 fine (€500,000 for a business).

If you employ a foreigner without a work permit, you risk 5 years in prison and €15,000 fine per person (€75,000 for a business). If the offense is committed in an organized gang, the penalty shall be 10 years' imprisonment and €100,000 fine (€500,000 for a business).

Additional penalties

In the event of conviction, the following additional penalties may be imposed:

  • Prohibition to exercise your professional activity for a maximum of 5 years
  • Exclusion from public procurement for up to 5 years
  • Confiscation of objects produced in the context of illegal work, or of professional equipment that allowed production
  • Viewing judgment in journals
  • Dissemination of the court decision convicting you (criminal decision) in a blacklist on the Ministry of Labor website. This dissemination is mandatory and lasts for a maximum of 1 year for concealed work offenses committed against minors, vulnerable or dependent persons, in an organized gang or when there are several victims. Dissemination is optional and lasts a maximum of 2 months when concealed labor is committed without aggravating circumstances. The maximum period for broadcasting is 2 years in the event of bargaining, illegal lending of labor or foreigner employment without a work permit.
  • Prohibition of civil rights (e.g. voting rights) and civil rights (displacement, kinship, marriage, inheritance, etc.).

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