International Provision of Services (IPS): Definition and Main Obligations of the Foreign Employer

The International Provision of Services (IPS) is a common situation involving the posting of workers: a company established outside France temporarily sends its employees to France to perform a commercial contract for a French client. The employer’s obligations vary depending on the nationality of the posted worker (EU/EEA/Swiss nationals versus third-country nationals). Understanding these distinctions is essential to avoid penalties, commercial disruption and compliance risks.

What Is an International Provision of Services (IPS)?

An IPS generally corresponds to a posting of workers outside an intra-group mobility framework: a company established outside France temporarily posts one or more employees to carry out a service for a client located in France. The employee remains contractually employed by the home employer (employment contract and remuneration remain in place abroad).

An IPS requires the existence of a commercial contract between the foreign service provider and the host company in France.

What Distinguishes an IPS from ICT Posting?

An IPS typically concerns an external commercial relationship (there is no group affiliation); the relationship of subordination remains with the foreign employer.

By contrast, ICT posting falls within intra-group mobility and is subject to specific rules.

Key Obligations of the Foreign Employer in the Context of an International Provision of Services

1. Prior Declaration of Posting (DPD)

Before the assignment begins, the employer must submit a Prior Declaration of Posting (DPD) via the SIPSI online portal and appoint a representative in France.

Failure to submit the DPD exposes the company to administrative and financial penalties.

2. Compliance with the French “Core” Employment Law Rules

During the posting period, the employer must ensure that the posted worker benefits from the mandatory provisions of French employment law (equivalent minimum remuneration, working time, health and safety, rest periods, etc.).

Depending on the duration and circumstances of the assignment, additional obligations may apply.

3. Eligibility Conditions and Remuneration

An IPS requires a commercial contract between the foreign employer and the host company in France, as well as compliance with the principle of “equal pay for equal work”.

Even if the employee is paid abroad, their remuneration must be at least equivalent to that applicable in France for a comparable position.

4. Duration of the Assignment and Possible Extensions

The assignment is, in principle, time-limited (often 12 months). Extensions may be permitted, subject to conditions and to formalities completed with the French authorities.

Anticipation and forward planning are essential to ensure continued compliance.

5. Immigration Formalities Depending on the Nationality of the Posted Worker

EU / EEA / Swiss nationals:
No immigration formalities are required under the principle of free movement. However, the SIPSI declaration remains mandatory.

Third-country nationals:
In addition to the SIPSI declaration, the employer must complete the required immigration formalities (work authorisation, visa and post-arrival formalities in France).

6. Documents to Be Kept Available in France

The employer or its appointed representative must be able to present the following documents in the event of an inspection by the labour authorities or competent services:

• The SIPSI declaration
• The commercial contract
• The employment contract
• Payslips and proof of remuneration
• Documents relating to the assignment and, where applicable, immigration documents
• Any other required supporting documentation

7. Risks in the Event of Non-Compliance

• Administrative penalties and fines
• Inability for the employee to continue the assignment
• Commercial blockage by the contracting authority

8. Shared Liability: What Should the Foreign Employer Be Aware Of?

As a service provider posting workers to France, you must bear in mind that the host company in France shares joint liability regarding compliance with posting rules.

In practical terms, if your company fails to properly fulfil its obligations (SIPSI declaration, document retention, compliance with remuneration rules, immigration formalities for third-country nationals, etc.), the French contracting authority may also be held liable and sanctioned — which may jeopardise your commercial relationship.

Another important point: obligations relating to the posting of workers are not limited to immigration formalities. They also cover employment law (core provisions: remuneration, working time, health and safety), Social Protection and, depending on the situation, potential tax considerations.

Please feel free to contact us to secure your service provision in France and preserve your commercial relationships!

Article by Ilham Safraoui and Bao Duong Trong, Worker Posting experts at France Immigration