Self-employed: crisis today, eldorado tomorrow? Focus on freelance administration
Confinement, telecommuting, short-time working... 2020 will have been a pivotal year for the self-employed. While taking the plunge may seem risky in the current climate, the self-employed status of the self-employed has attracted more people than ever.
Over 848,000 new business registrations were recorded over the year. So, is self-employment the status of the future? If so, under what conditions? Is there a legal form (SASU, micro-entrepreneur, etc.) that stands out? We've broken down the subject for you.
Covid: how are the independents faring?
A sector in turmoil
The term "self-employed" is a catch-all phrase that needs to be clarified once again. It refers to any person wishing to be self-employed, without a subordinate relationship with a single company. At the end of 2019, there would be more than 3.6 million self-employed people in France (ACOSS). That's some 33% more than in 2008 (INSEE). Encouraging figures, but what's really behind this desire for freedom? What are the conditions for the self-employed? We wanted to take a closer look at the subject.
First of all, it's worth noting that self-employment can take several forms: SASU, SAS, micro-entrepreneur, etc. In the majority of cases, however, guarantees and security are unfortunately very limited. In times of crisis, these limitations tend to be exacerbated. Let's take a look at the impact of COVID on the self-employed.
Uneven repercussions
The repercussions are quite varied.
Sales at half-mast
According to a survey carried out at the end of the year by Crème de la Crème (a reference site for freelancers), 50% of the freelancers present on the Internet had lost their jobs.% of freelancers on the platform noted a negative impact of the crisis on their sales in Q4 2020.
Only 42% said they had been spared. This is a trend observed for most freelance statuses. Indeed, to protect themselves, many companies have put certain projects, and therefore certain services, on hold.
The self-employed were in the front line: fewer assignments, more complex negotiations, almost impossible prospecting, risks of non-payment... In short, a complex situation.
Inequalities between sectors
As ever, some sectors are doing well. According to a study by Malt in partnership with the BCG Institute, over 85% of people offering project management services (project managers, agile coaches , etc.) have had at least one assignment cancelled. It ' s 79% in business & consulting, 74% in communication & marketing .
Tech (developers, data scientists, etc.) was one of the sectors spared the most. Consulting, administration and design were harder hit.
Some statuses less affected than others
Most self-employed professionals have been hard hit by this global crisis. On the other hand, some statuses seem to have been spared more than others.
One in particular seems to have fared particularly well: freelance administration. This format combines two key elements: flexibility (aka the freedom of independence) and security (aka the advantages of salaried employment).
What is "portage salarial"?
A status halfway between independence and salaried employment
As we've seen, being self-employed means choosing from a jungle of statuses (EURL, freelance, SASU, etc.). In short, the jargon isn't necessarily intuitive, and the subtleties aren't always obvious. In this flurry of options, one that is often underestimated is "portage salarial".
Halfway between independence and salaried employment, "portage salarial" is a hybrid format that combines the advantages of both statuses. Simply put:
- Flexibility: You are in control of your business, and define all the terms and conditions of your assignments (clients, rates, services, etc.). The freelance administration company then takes charge of formalizing them (contracts, invoicing, etc.), invoicing the service and converting it into a salary. All you have to do is concentrate on what's really important: your assignment.
- Security: You are bound to the freelance administration company by a contract of employment (CDD or CDI), with no subordinate relationship. As such, the company supports you in all administrative, legal and financial matters, and gives you all the benefits of salaried employment (health insurance, provident scheme, unemployment benefit, pension, etc.).
In a nutshell, it's the embodiment of French flexicurity. Flexibility in the workplace, security to work in good conditions. And it's suitable for a wide variety of profiles. In a few words, "portage salarial" means :
- over 750 professions (excluding personal services and regulated professions),
- 3 main sectors (IT, training, project management),
- intellectual services (consulting, auditing, engineering, IT, training, etc.),
- commercial services (sales, real estate transactions, management, intermediation, etc.).
A little-known form of freelancing
This form of freelance administration has already attracted more than 50,000 people in 2020 (compared with 32,800 in 2018). It is therefore making rapid progress, and its medium-term potential is considerable. Some estimate that it could represent up to 600,000 jobs by 2025 (source PEPS).
However, it is still often overshadowed by micro-entrepreneur status. Better known, more often mentioned in the media... Portage salarial is gaining in popularity, as attested by this study carried out by the Syndicat des Professionnels de l'Emploi en Portage Salarial (PEPS for short).
In 2018, only 53% of executives surveyed had heard of freelance administration. Of these, 75% have a good image of it, and 37% believe it will become more common in the future. It's a safe bet, then, that this status has a bright future ahead of it. And with good reason, freelance administration offers a number of significant advantages. It's time to decipher them.
What are the advantages in times of crisis?
A status that's easy to set up
Freelance administration is one of the simplest legal forms to set up. There' s no need to set up a new structure. All you need to do is contract a third party (the "portage salarial" company), who will take care of everything (or almost everything ). You manage your assignments (services, costs, clients, etc.), while the "portage" company takes care of the rest (invoicing, collection, social security declarations, etc.).
Is this service free? Not exactly. The company takes a percentage of your assignments. This can range from 4% to 10%. This may seem like a lot, but it's important to consider the time you spend as a freelancer on administrative and management tasks. The figures range from simple to triple, but we're generally talking about more than a third of the time. Which is a lot.
Everyone is free to make their own calculations, but freelance administration can be an excellent compromise for optimizing your time and gaining peace of mind. And for those with a phobia of red tape, it can even be decisive.
Unique social protection
Aside from the administrative side of things, most freelance administration companies offer you social security conditions similar to those of an employee. This may seem trivial, but in times of crisis it makes all the difference. A few basics:
- Income: A fixed, guaranteed salary, the possibility of smoothing the amount (and compensating for fluctuating activity), unemployment insurance, pension contributions, etc.
- Health: Mutual insurance, maternity benefits, work accident cover, etc.
- Leisure: luncheon vouchers, works council, etc.
- Training: Access to a wide range of training courses (with or without certification).
- Real estate: pay slips (convenient for a loan, for example).
In short, freelance administration is a rather comfortable form of status. Still not sure? Here's a bonus: this status can be reconciled with other statuses. No commitment, no risk. You can create an à la carte format to suit your needs.
An increasingly important status
The sector is gradually expanding. In France, and throughout Europe, similar forms are emerging. Things are becoming more structured. The players in the sector now have the legitimacy to build the future directly alongside the State and institutions.
Today, freelance administration represents :
- over 300 companies in France ;
- a first mention in French law in 2008 (law no. 2008-596 of the Labor Code concerning the modernization of the employment market), which officially defined the legal conditions for freelance administration;
- a collective agreement dedicated to freelance administration;
- a major victory in 2020: freelance workers were able to benefit from the short-time working scheme, in the same way as salaried employees. A first.
These measures and changes point to a bright future for freelance administration. And just what place will this status have in tomorrow's society?
What about tomorrow?
The open-ended contract remains the dominant form of employment in France today. It accounted for over 85% of jobs in 2016.
And yet. According to an IFOP survey, 14.3 million working French people would be ready to become self-employed if favorable political measures were put in place. That's no less than half the working population!
Given the context, and the extent to which this movement is gaining momentum, there's every reason to believe that labor law will gradually be adjusted to accommodate this new form of work. In the meantime, one form of employment seems to offer a good compromise between salaried employment and independence: "portage salarial".
The advantage? There's no need to wait to take the plunge: it's now possible to become a "porter" in just a few clicks.
Article translated from French