What is freelance administration? Discover its little known advantages

The development and growth of entrepreneurship is creating more and more new forms of work. The evolution of the professional world is in full swing and choosing between entrepreneurship and salaried employment is no longer the only option. Working and benefiting from the social advantages of an employee while keeping one's entrepreneurial autonomy is also possible thanks to the portage salarial. It is a new form of employment that offers several advantages. Discover in this article what it consists of, its advantages and its functioning.

What does freelance administration mean?

The portage salarial can be defined as a form of atypical employment. In other words, it is a contractual relationship between three parties: a freelance administration company, a consultant and the client company for which the consultant provides services. The legal definition of this concept is written in the article I. 1254-1 of the ordinance n°2015-380 of April 2, 2015 relating to the portage salarial. It is a particular concept because of its compromise between salaried employment and autonomy.

The portage salarial is considered as a booming business since several years. Once almost confidential, it is now an alternative activity that attracts consultants who want to have their own activity in complete security. Indeed, three types of contracts are concluded for a freelance administration. These are

  • An agreement of portage: the agreement of portage allows the two parts i.e. the consultant and the customer company to define the terms of the contract which binds them. This convention wants to inform the consultant of the pension fund to which he is affiliated;
  • the contract of employment which engages the consultant and the company of portage. It is a contract which includes the same clauses as for any employee contract;
  • Finally, a mission contract: this contract defines the conditions of execution of the services for the client company.
portage salarial en france
portage salarial en france

The advantages of freelance administration

The wage portage offers to the consultant many advantages. Indeed, the portage salarial allows the consultant not to worry about the choice between autonomy and salary.

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The advantage of freelance administration is that it helps you to always have your autonomy but frees you from administrative hassles. Thus, the consultant is freer in his work, and can then choose his customers, fix the prices of his services and provide an efficient work. The portage salarial reduces constraints such as invoicing, accounting and other declarations to public bodies.

The portage salarial allows the chosen consultant to benefit from a regular monthly income as remuneration for services rendered. Indeed, he also benefits from social and financial advantages such as: an unemployment insurance, a health insurance and the right to social security; a pension; a professional civil liability and mutual insurance. He also benefits from the signature of a fixed-term or open-ended work contract.

The other advantage linked to the portage is that the companies of portage take care themselves of the follow-up of the customers for the payment of the wages to the various consultants. The consultants are covered by the professional civil liability in case of damage suffered or caused during the exercise of their function.

As a consultant, you have the possibility to benefit from a continuous professional training as in the case of an employee. You are assured of being able to deepen your knowledge or to widen your expertise through these trainings in order to increase your activity and thus your profit.

Moreover, the companies of portage salarial allow the consultants to benefit from other useful services for the development of its activity. To illustrate, the chosen consultant can have access to his referencing with small and large companies in France and in Switzerland. This allows him to know how he is positioned and to have access to a large number of opportunities and consultants' network. This advantage is very useful because the consultant will look for several opportunities which correspond to him by going on the platforms of setting in relation.

The last advantage concerns the facility of borrowing. The consultant has the right to a pay slip which assures him a financial stability to the two parties, i.e. to the lessor and to the financial institutions. Here, the social protection is also an insurance in case of stop of activity. This protection thus ensures the payment of the loans or other financial settlements with the allowances.

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The functioning of the portage salarial

Freelance administration is a form of employment which works almost identically to that of a simple employee. It is therefore important to know everything about this form of employment before undertaking freelance assignments. Indeed, all profiles are concerned by this form of employment, in particular expert consultants, retired people, executives in reconversion, graduates and many others.

Thus, in this activity, the consultant receives a pay slip each month according to the amount of his invoice. To do so, he can be accompanied by a human resources advisor to determine his salary. The human resources advisor can also assist you as a consultant in optimizing your salary through the management of professional expenses.

The functioning of the freelance administration is divided in three axes: first, the employee benefits from a complete autonomy in the whole of his service for the client company. This autonomy goes through the nature of the mission, the cost and the duration. Secondly, the employee can sign a service contract with the client company and an employment contract with the freelance administration company. This contract can be for a fixed term or an indefinite term. Finally, the freelance administration company takes care of the various administrative acts concerning the payment of the fees for the service. This allows the company to issue a pay slip to the consultant.

Note that the payment of the salary is conditioned by an activity report called CRA, validated by the client company. The freelance portage allows freelancers or independent workers to benefit from the advantages linked to employees such as social benefits and also a regular monthly payment.

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