Under the French Collective Bargaining Agreement (CBA) for portage salarial (freelance consulting through umbrella companies), Article 21.3 establishes the "financial reserve" as a critical component of remuneration. Its primary purposes are to:
Provide financial security during periods of inactivity, such as between client assignments, by allowing consultants to receive an "allocation of prospection."
Cover severance or termination-related payments, such as the indemnity for contractual termination in the case of a mutually agreed termination (rupture conventionnelle).
Secure other costs tied to employment benefits in the event of contract cessation, ensuring compliance with legal and contractual obligations.
In French portage salarial, the financial reserve is typically created by withholding 10% of the employee's gross salary each month. This means the employee is paid 90% of their salary monthly, with the remaining 10% retained by the portage company in a reserve (accrual) account. The reserved amount is held until the mission ends or is otherwise needed (e.g., during periods of inactivity or for severance-related payments)
To clarify, the financial reserve is not an additional amount contributed by the employer. Instead, it is part of the employee's gross salary, temporarily withheld and released under specific conditions. This ensures financial security for the employee during transitions between assignments or upon contract termination.
In the Parakar France payroll, the financial reserve is retained from pay and will be paid out to the employee on leaving - payouts are not made at any other time or on demand. In the Neteem France payroll, the financial reserve is paid to the employee monthly, so there is no withholding of pay, or accrued reserve, and there will be no additional payout on leaving.