Is it possible to be an auto-entrepreneur and an employee?

Auto-entrepreneur: what is it?

The auto entrepreneur status is appreciated for its flexibility and its micro-social and micro-tax advantages.

Micro-business: a flexible status

Micro-entrepreneur is the official term for a self-employed person working in his or her own name. They benefit from a simplified tax and social security system. Setting up a micro-enterprise is easy.

There's no need for complex corporate formalities:

• drafting of articles of association ;
• formation of share capital ;
• publication of an announcement in a legal gazette, etc.

Micro-business: a status without legal personality

The micro-enterprise is a simplified form of sole proprietorship (EI). It does not imply the creation of a legal personality. It is attached to an individual.

An individual cannot therefore set up several sole proprietorships.

Separation of assets in micro-businesses

The personal and professional assets of an auto-entrepreneur are separate. The latter is made up of all the items needed for the entrepreneur's professional activity: business premises, business equipment, business bank account, etc.

Personal assets include the principal residence, personal vehicle, personal savings accounts, etc. Separation of assets protects the entrepreneur's personal assets in the event of business debts.

However, when an entrepreneur fails to meet his or her tax and social security obligations, the public authorities can obtain repayment of claims against personal and business assets.

Is it possible to combine self-employed status with salaried employment?

In principle, it is possible to combine a salaried position with auto-entrepreneur activities. However, there are certain restrictions.

A possible combination of salaried employment and sole proprietorship

It is possible to combine a salaried activity with the creation of a micro-enterprise.

All forms of private salaried employment are compatible with the auto-entrepreneur status:

• CDI ;
• CDD ;
• Interim ;
• Internships, etc.

There are no restrictions on the type of business: trade, liberal professions, crafts.

Employment contract clauses

The specific features of a trade or sector of activity may impose restrictions on working as a sole trader. These constraints may be mentioned in the employee's employment contract or collective agreement.

The exclusivity clause

An exclusivity clause requires an employee not to engage in any other salaried or self-employed activity for the duration of his or her employment contract.

It is therefore not possible to combine a permanent or fixed-term contract with the status of auto-entrepreneur. Failure to comply with the exclusivity clause may result in termination of the employment contract.

An employee may request a waiver of the exclusivity clause in his contract. He or she must submit the request to his or her employer and obtain written approval.

The non-competition clause

An employment contract may include a non-competition clause. It is designed to prohibit the employee from working for a competing company after the contractual relationship has ended.

Failure to comply with this clause may result in legal action by the aggrieved company and the payment of damages. To enforce this clause, your company can pay you compensation over a specified period.

What is the duty of loyalty?

The duty of loyalty binds an employee to his company. The auto-entrepreneur may not carry out his activity during his salaried working hours. Company equipment may not be misused to serve the interests of the auto-entrepreneur.

Micro-entrepreneurs may not disparage the company employing them in the course of their business. They may not poach other employees to develop their own business.

What are the penalties for non-declaration of a micro-enterprise by an employee?

An employee who fails to inform his or her employer of the creation of a microentrepreneurial activity is liable to sanctions. The employer can apply disciplinary measures: warning, layoff, dismissal for serious misconduct.

Violation of the loyalty clause may result in prosecution for :

• customer misappropriation
• unfair competition.

The injured company is entitled to claim damages. If the company's resources have been misappropriated by the employee and self-employed entrepreneur, it can claim compensation for the damage suffered.

Is it possible to combine the status of auto entrepreneur with a job as a civil servant?

Public sector employees, whether on contract or as civil servants, can combine a job in the public sector with a self-employed activity.

Public sector employee: conditions for becoming a self-employed contractor

To become an auto-entrepreneur while working as a civil servant, the following conditions must be met:

• file an authorization with your hierarchical authority before starting your self-employed activity;
• carry out this secondary activity without disrupting the main activity;
• carry out the secondary activity outside the employee's working hours;
• the secondary activity must not represent an illegal taking of interest.

The initial authorization granted to the civil servant may not exceed three years. It must be renewed one month before the expiry date. It is renewed annually thereafter.

Civil servant: what activities are authorized as an auto-entrepreneur?

The following activities are authorized for civil servants who wish to operate their own business:

• General interest activities ;
• Sale of goods produced by the micro-entrepreneur ;
• Service activities: childcare, assistance for dependent persons, home help, etc;
• Activity as a collaborating spouse ;
• Agricultural activity ;
• Sports or cultural activities ;
• Teaching, training, consulting, etc.

What are the consequences of combining statuses?

A civil servant working as a self-employed entrepreneur must declare his income under two different categories:

• Salaries and wages: income from public service.
• Micro-BIC or micro-BNC category: auto-entrepreneur's sales.

A public sector employee with a secondary self-employed activity has two social security statuses. He/she pays contributions both as a civil servant and as a micro-entrepreneur. Benefits are paid either under the general salaried employee scheme, or under the social security scheme for self-employed workers.

What activities cannot be combined with a micro-entrepreneur activity?

Some regulated professions do not allow you to combine a micro-entrepreneur status.

SeDomicilier details the excluded professions:

• insurance professions ;
• chartered accountants ;
• statutory auditors ;
• legal professions (lawyers, court clerks, notaries, etc.);
• healthcare professions (doctors, nurses, veterinary surgeons, midwives, etc.).

A regulated professional activity is one whose access and practice are governed by legal or regulatory provisions.

The status of employee and that of auto-entrepreneur can be combined under certain conditions. To avoid conflicts with your employer, it is essential to respect the clauses of your employment contract and collective agreement.

What are the health and social security consequences of holding multiple jobs?

Payment of social security contributions is compulsory for each type of activity.

Obligation to pay social security contributions for each source of income

An employee and self-employed entrepreneur must pay social security contributions for both sources of income.

He contributes to both social security schemes. Employees are taxed directly on their pay slips. Auto-entrepreneurs pay their social security contributions monthly or quarterly, based on their sales.

Which social security system does the ascendant take?

From a legal point of view, you don't have the option of choosing the social security scheme of your choice. The social protection scheme for your main activity takes precedence, as this is the one to which you contribute the most.

An exception is made for maternity. Employees and self-employed women can choose the most attractive social security scheme to cover their care throughout and after pregnancy.

What about retirement for employees and self-employed entrepreneurs?

An employee and microentrepreneur retiring is considered as polyactive. Combining several activities does not allow you to retire earlier. An active worker cannot acquire more than four quarters per year.

Retirement benefits for employees and auto-entrepreneurs are calculated on the basis of their dual activity. They are paid by two or more pension funds, depending on their career path. For the self-employed, retirement is calculated on the basis of sales.

Basic and supplementary pensions are validated by Social Security or CIPAV, the pension fund for the liberal professions.

Why choose a second professional activity as a micro-business?

Self-entrepreneurship as a second activity is advantageous in several respects. SeDomicilier invites you to discover the advantages of a dual activity.

Making a living from your passion

Sometimes it's hard to combine a lucrative career with a passion. But it doesn't have to be that way. The auto-entrepreneur status allows you to develop a secondary activity based on your passion. This gives you the opportunity to develop professionally while generating additional income.

Micro-business as a secondary profession can be a test phase for launching an independent activity. It's an opportunity to test the viability of a reconversion project based on something you're passionate about.

Generate additional income to finance your projects

Is your job enough to support you and your family? Individual entrepreneurship can help you finance your projects. Generating additional income means you can finance your projects or dreams: buying or renovating real estate, buying a car, financing your travels, etc.

Developing new skills

The additional income generated by your self-employed entrepreneurial activity is not only an opportunity to strengthen your savings. It allows you to develop new professional skills. You'll be able to put these skills to good use on your résumé, when you apply for other job opportunities.