AOR vs EOR in France

Compare AOR and EOR in France. Learn when to use an AOR for contractors or an EOR to hire employees without a local entity.

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When you start working in France, the real question is rarely “Is there enough opportunity?” It is: “How do we structure the people we need on the ground?”

Very quickly, two acronyms appear: AOR (Agent of Record) and EOR (Employer of Record).

Both models help international companies operate in France without creating a local entity from day one. But they do not serve the same purpose. AOR and EOR are built for different types of relationships, and choosing the right model has a direct impact on compliance, speed, cost and how attractive you look to French talent.

In this article, we walk through AOR vs EOR in France, with a clear focus: for independent contractors in France, an Agent of Record in France like Freeteam is usually the most natural starting point, while Employer of Record in France is a powerful complement for genuinely long-term employees.

AOR and EOR: two different answers to two different questions

AOR: the most efficient model for independent contractors in France

An Agent of Record (AOR) is built for independent contractors:

  • The individual remains self-employed (micro-entrepreneur, one-person company, or other freelance structure).
  • They invoice for services instead of receiving a salary.
  • They keep autonomy over how they organise their work to deliver the agreed outcomes.

The Agent of Record sits in the middle and:

  • Standardises contracts and legal terms in line with French practice.
  • Coordinates onboarding and documentation.
  • Manages invoice flows and sometimes payment collection.
  • Helps reduce misclassification risk by keeping the relationship aligned with a genuine contractor status.

In short, AOR in France is the right model when the honest answer to “Is this person really a contractor?” is a clear “yes”, and you want a structured, compliant way to work together without opening a French entity.

EOR: employ your people without creating a French entity

An Employer of Record (EOR) exists for situations where the relationship is clearly employment:

  • The EOR signs a French employment contract.
  • It becomes the legal employer in France.
  • It runs payroll, pays social contributions and manages benefits.

You keep control of:

  • The role, objectives and priorities.
  • Day-to-day management, performance reviews and integration into your team.

EOR in France is the right model when the relationship looks and behaves like employment, but you do not want to create a
French legal entity or register as a foreign employer just to hire one or two people.

Hiring in France requires the right structure

Whether you are hiring employees or working with independent talent, the right model makes all the difference in compliance, cost and speed.

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AOR vs EOR in France: how do they compare in practice?

Legal status and control

From a French labour law perspective:

With AOR:

  • Legal status: independent contractor.
  • Control: the contractor keeps genuine autonomy; you define the mission and outcomes, not micro-management.
  • Main risk: misclassification if, in reality, the contractor is treated like an employee.

With EOR:

  • Legal status: employee of the EOR.
  • Control: you manage daily work just like any employee.
  • Main risk: the usual HR topics linked to employment, but misclassification as a contractor is removed.

If your internal managers expect someone to “live” inside your organisation and be available like staff, you are close to an EOR/employee scenario. If you expect someone to bring expertise and deliver defined projects, AOR is usually the better fit.

Typical use cases

Where AOR in France makes the most sense (and where Freeteam shines):

  • Senior consultant advising on your France market entry.
  • Subject-matter expert leading workshops or training.
  • Specialist running a time-limited project (SEO, UX, data, brand launch).

Here, independence is an asset: you want someone with perspective, several clients and strong autonomy.

Where EOR is more appropriate:

  • First sales or country manager for France.
  • Customer success lead dedicated to French key accounts.
  • Product or engineering roles you clearly see on your org chart for the long term.

A simple test: if you would introduce the person internally as “part of the team” for the next 3–5 years, you are likely closer to EOR than to pure contracting.

Cost structure and flexibility

With AOR:

  • You pay daily or project-based rates.
  • Social security is handled by the contractor.
  • You benefit from high flexibility to increase or reduce scope as business needs change.

With EOR:

  • You pay a monthly salary plus employer charges (usually packaged in the EOR fee).
  • You gain loyalty and continuity, but with more rigid termination rules.
  • You build a visible narrative of “real jobs in France”, which can support employer brand and customer relationships.

Most companies do not choose AOR vs EOR in France once and for all. They combine both: AOR for flexible expertise and project-based roles, EOR for core strategic positions.

How to choose between AOR and EOR in France

Instead of a rigid decision tree, ask yourself three questions:

→ Is the role clearly project-based and high-autonomy?

If yes, an Agent of Record in France is usually the right starting point.

→ How integrated will this person be in your organisation?

If they join all internal rituals, report like staff and represent your company every day, you are in EOR or direct employment territory. If their integration is limited to specific projects and they retain control over how they deliver, AOR still makes sense.

→ How do you see the relationship in 2–3 years?

If you already know you want this person as “your person in France” for the long term, EOR (or, later, direct hire in your own entity) is coherent. If you see the relationship as flexible and evolving, AOR respects that reality and keeps everyone aligned.

You do not have to be perfect from day one. You can start with an Agent of Record in France, let the business evolve, and move some roles to an Employer of Record model later if they clearly become employee-type positions.

Conclusion: choosing the right model for your French strategy

In the end, the question is not whether AOR or EOR in France is “better” in absolute terms, but which model fits the reality of each role and of your stage of expansion.

For independent consultants and project-based work, an Agent of Record in France like Freeteam gives you structure, compliance and flexibility without forcing you to open a local entity. For long-term, deeply integrated roles, an Employer of Record in France brings the stability and protection of full employment, without the immediate burden of creating a French subsidiary.

Most international companies will use both over time: AOR to bring in senior expertise quickly and safely, EOR when it becomes clear that you need people who are your “team in France” for the long run. The key is to make that choice consciously, role by role, instead of defaulting to one model for everyone.

If you want to deepen certain aspects, you can explore our other articles on what an Employer of Record is in France, the legal requirements for hiring in France, and the benefits of using an EOR. Taken together, they give you a complete, practical view of how to structure hiring in France – so you can focus on what really matters: building a strong, sustainable presence on the French market.