Employing household staff in Monaco can be a straightforward process when adhering to the Principality’s labour laws, but there are several important factors to consider. 

Sophie Marquet, a founding partner at CMS Monaco and head of the Employment team, is highly regarded for her expertise in employment law. With around 20 years’ experience, she provides employers with litigation and strategic advice on all matters relating to handling labour relations.. 

In this Q&A, Sophie shares her expertise on the key steps, legal requirements, and potential pitfalls in the hiring process of domestic staff in Monaco, helping employers ensure compliance while establishing effective working relationships.

Monaco Life: Let’s start with the basics. What constitutes an ‘employer of household staff’ and who qualifies as ‘household staff’?

Sophie Marquet: An ‘employer of household staff’ is any private individual who wishes to have someone work in their home to carry out domestic or household tasks, such as cleaning, ironing, childcare, or even sick care. Essentially, any person can be considered an employer if they hire a salaried worker for tasks in the home, even if this work represents just one hour a week or month.

The roles that qualify as household staff are strictly defined by the Monegasque Social Security Funds. They include housekeepers, chauffeurs, cooks, domestic servants, chambermaids, bodyguards, nursemaids, governesses, gardeners, valets, and several others. It’s important to note that personal assistants, private accountants, and building janitors, for example, do not fall under this category and are subject to different employment regulations.

How straightforward is the process of hiring household staff in Monaco?

The process of hiring household staff in Monaco requires employers to register with the Monegasque Social Security Funds to obtain an employer registration number. This registration is mandatory and applies to both Monegasque nationals and residents with a valid residence permit. Once registered, the process is simplified compared to hiring in other sectors, as employers do not need to submit job offers or comply with priority candidates from the Employment Service.

Employers are free to choose their staff, provided the candidate resides in the Alpes-Maritimes or Italy, and, for non-EU nationals, has the necessary residence permit. If the worker lacks a valid permit, it is nearly impossible to regularise their employment.

What are the overall expenses associated with employing household workers in Monaco?

Employers must adhere to the legal minimum gross hourly rate, currently set at €11.65 as of January 2024. In addition to this, a 5% bonus must be added, which is not subject to social security contributions. Employer contributions, approximately 35% of the gross salary, must also be paid. For full-time employees working overtime, the first eight hours of overtime must be compensated with a 25% increase, followed by a 50% increase for any additional hours.

While there are no obligations to provide additional health insurance or benefits, employers are responsible for paying contributions to the Monegasque social security system.

Are there any exceptions or reductions in social security contributions?

Yes, there are some exceptions. Employers with one or two household employees working fewer than 254 hours per month benefit from a reduced contribution base of 33% of the gross salary. The same reduction applies when employing a caretaker or home help for medical reasons. In other cases, the contributions are calculated based on the full declared salary, up to a certain limit.

What legal obligations do employers have towards their employees and Monegasque authorities?

Employers must provide their staff with work in line with their employment contract and pay their salary on time, accompanied by a pay slip. They must also respect working hours, offer one day of rest per week, and allow for paid leave. Social security contributions must be paid within 10 days of receiving the call for contributions from the Monegasque Social Security Funds.

If employers wish to dismiss an employee, they must follow a procedure that includes several preparatory steps. This involves notifying the employee in writing, conducting a pre-dismissal interview, and spacing these actions over several days to avoid sanctions for immediate or verbal dismissals. Additionally, employers must serve the employee with notice and pay termination benefits if applicable.

How can employers handle disputes or disagreements that may arise with household staff in Monaco?

Disputes between employers and employees are handled by Monaco’s Labour Court, which requires a preliminary conciliation procedure to encourage settlement before litigation. Alternatively, disputes can be resolved amicably through a lawyer, which guarantees confidentiality during negotiations.

Are employers required to provide accommodation for household staff?

There is no legal obligation to provide accommodation. However, offering housing can simplify the visa or residence permit process for foreign employees and facilitate their work, especially in roles like nannies or carers for the elderly. If housing is provided, it must be declared on the pay slip and is subject to social security contributions.

It is crucial to establish a clear contract for such arrangements, as housing should not create permanent residential rights for the employee.

What happens if a household staff member falls ill?

If an employee falls ill, they must notify their employer and provide a medical certificate within 48 hours. The employer is then responsible for filing the necessary forms with the social security office. For absences longer than 15 days, this process must be repeated every 15 days. Employees with more than two years of service are entitled to continued pay during their illness, with rates and durations dependent on their length of employment.

Employers cannot permanently replace staff on sick leave unless the absence exceeds six months. Moreover, dismissing an employee on sick leave is prohibited unless there are specific disciplinary or economic reasons.

Can household staff be employed at a second home in France or onboard a yacht?

Employing household staff in France, such as at a second home, requires special consideration. If the work is occasional, a secondment procedure is advised. For more permanent roles, employers can either offer two part-time contracts or hire the employee under French law with proper social security arrangements.

As for employing staff on a yacht, this is more complex. Yacht personnel fall under a different legal category, that of seafarers, and cannot be replaced by household staff while the vessel is in navigation. Even occasional work on board while docked can pose legal and insurance risks, so it is generally discouraged.

What advice would you offer to individuals looking to hire household staff in Monaco?

I strongly recommend signing an employment contract that includes protective clauses for the employer, such as confidentiality and exclusivity. It’s also essential to ensure employees have valid residence permits and visas from the start, as it is very difficult to regularise undocumented workers later. Keeping accurate records of working hours and adhering to employment law is crucial to avoid potential legal and financial repercussions.

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See also: 

Tax obligations in Monaco: What every resident needs to know

Main photo source: Unsplash