[GuB-42]

There is no single way of doing contract work. And the kind of thing Google does provide very little benefit to the contractor vs an employee.

I don't know how it is in the US but we have the same issues in France.

The law is called "délit de marchandage" and what it means, essentially, is that a contractor is treated like an employee but without the benefits of an employee.

The idea of the law is that contract work is fine, but the contractor has to stay independent. For example, if I want to have an Indian do the work for me, that's my right as a contractor, my only obligation is to deliver what we agreed upon in the contract. Obviously, it is not always practical, I may want to hire a consultant for a specific task because I don't have the expertise and it is not worth hiring someone for just that one task. That's where the 2 years rule comes from. If I have to hire a consultant, full time, for 2 years, then it is not just a mission anymore and I need to hire an employee.

[908B64B197]

Part of the problem in France is that it seems firing underperforming employees is almost impossible (multi-year process)

[GuB-42]

Yes, it can be very difficult.

But for it to be a multi-year process, it has to be an exceptional situation. Often involving court battles, unions, etc... In practice, most employees don't want to stay in a company where they are unwanted, they may try to negotiate a bonus but rarely fight to the bitter end. But sometimes, it happens, and it is one of the things small employers fear the most.

Getting fired can actually be a good deal for the employee because he will get unemployment benefits after that, whereas if you quit, you won't.

But generally, you are right by saying that in France having an employee is a big commitment for a company, plus, large companies often have unions.

[908B64B197]

Sounds like that legislation doesn't work at all for startups.

[GuB-42]

Startups have some benefits to compensate. Less legal obligations, less taxes, and sometimes subsidies.