French Employment law - Benefit in kind: free undeclared company housing = undeclared work (travail dissimulé) (c. cassation Dec. 4th, 2024, 23-14.259)

The Court of Cassation, in its decision of  December 4th 2024 (23-14.259) published in the Bulletin, reaffirmed that the free provision of company housing constitutes a benefit in kind that must be included in the employee's remuneration and entered on his or her pay slip.

The high court states that the provision of housing by the employer constitutes a benefit in kind that must be included in the amount of the employee's remuneration and that must be indicated on the pay slip given to him or her. According to Article L8221-5, 3°, of the French Labor Code, concealed employment is deemed to be undeclared work by concealment of salaried employment when any employer intentionally evades declarations relating to salaries or social security contributions based on them to the organizations responsible for collecting social security contributions or the tax authorities under the legal provisions.

The Aix-en-Provence Court of Appeal rightly ruled that the provision of free company housing constitutes a benefit in kind which must, as such, be assessed to be subject to social security contributions, and it is in the exercise of its sovereign power of assessment that it holds, noting that the employee was housed by his employer in a company building, that the employer's intention to conceal this benefit, not indicated on the employee's pay slips, is characterized.

To read the full brief, click on the link below

https://www.village-justice.com/articles/avantage-nature-logement-fonction-gratuit-non-declare-travail-dissimule,52397.html

Frédéric CHHUM avocat et ancien membre du conseil de l’ordre des avocats de Paris (mandat 2019-2021)

CHHUM AVOCATS (Paris, Nantes, Lille)

e-mail: chhum@chhum-avocats.com

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