Freelance vs CDI: Trends in 2023

Are you torn between a permanent contract and freelance status? We explain the differences and subtleties to help you make your choice.  

If you're scrolling through LinkedIn or working in the digital sector, you've probably noticed that many professionals call themselves "freelancers".

But what does this mean in practice? 🧐

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What does freelancing involve?

The term "freelance" refers to all professionals (sometimes called "freelancers") who work independently, as opposed to a " classic" employee who is hired by a single employer under a fixed-term or permanent contract. 📝

Like liberal professionals, these self-employed workers offer their services to various "employers", called clients, because they are commercial services and the client has no subordinate relationship. In fact, only a contract for the provision of services links them. 

The freelancer is therefore free to work with whoever they want, wherever they want, to set their own prices, to manage their schedule and to accept several projects simultaneously. 🚀

And what about the permanent contract?

In contrast, the open-ended contract (CDI), defined by the Ministry of Labour as "the normal and general form of the employment relationship", is the type of contract to be favoured by the employer. Like the fixed-term contract or the work-study contract, the very principle of the CDI is based on the employee's obligation to provide work to the employer in return for remuneration, and includes rights and benefits. The employer therefore has a subordinate relationship with the employee which allows him to give instructions. 👮♀️

The CDI differs from other contracts in that it does not have an end date. It is governed by the Labour Code and therefore meets certain standards (holidays, minimum wage, working hours, etc.). Its content and specific clauses are agreed by the employee and the employer at the time of hiring and everything is adjustable. 🛠

Freelance vs. permanent employment: which jobs and which status to practice? 

Not everyone can become a freelancer. Some professions are more suitable than others for being self-employed. So-called "intellectual", artistic or consulting jobs are more suitable for service provision.

Thus, according to the rankings made by the various online platforms that put companies in touch with freelancers, the most common jobs are those related to Tech and digital: web and mobile developer, webmaster, community manager, graphic designer, SEO writer, IT consultant, etc.

The jobs that can be done as a freelancer are more varied: project management, business, translation and proofreading, accounting and finance, photography and design... 👩🎨

With regard to the type of company to set up before starting to practice, there are two possible choices:

• Sole proprietorship (EI)

• The micro-enterprise (or auto-enterprise): according to information from URSSAF, "the auto-enterprise is an individual business that falls under the micro-enterprise tax regime and the micro-social regime for the payment of social security contributions. This simplified regime was created to facilitate the procedures for creating and managing your business, while allowing you to benefit from dedicated social protection and other advantages. 

• The EURL or SASU type company

It is imperative to compare the characteristics of these different legal forms in order to determine which one is best suited to your situation. 

Taxation is one of the key parameters in this choice. 🔑

Freelance vs. permanent employment: advantages and disadvantages

Would you rather work as a freelancer or as an employee in a company? Both possibilities have their advantages and disadvantages. 

Below is a summary (but not exhaustive) list of the positive and negative points we have identified.

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Freelance vs. permanent contract: what impact on my CV and in the eyes of recruiters?

We asked a recruiter, a headhunter for large tech groups, what he thought of these two statuses and how he evaluated them from a career path point of view which is most sought after. 🕵️♀️

According to him, a person with prolonged professional experience in the same sector or in a specific trade would be better off going freelance to sell his or her expertise and to surround himself or herself with other freelancers for large-scale projects.

Depending on the profiles he is looking for for his clients, he can focus on profiles with a solid foundation in permanent employment. In his experience, permanent positions provide more opportunities to work on strategic projects, whereas tasks that are outsourced, especially to freelancers, have less added value and take the burden off the teams that are focused on the more strategic part.

It is therefore an opposition strategy vs operational 🥊

It can be contested depending on the context in which the freelance project is developed, the level of seniority and the type of candidate sought. 

As you will have understood, this choice must be carefully considered and evaluated according to various parameters: your desires and motivations, your professional and personal objectives, your salary requirements, your personality, etc. You must also take into account external factors such as the tax rules to which you are subject, or the situation of the market in which you wish to set up. 

💡 Finally, remember that it is usually quite simple to switch from one status to another, and nothing is final.  

Frequently asked questions

What is freelance work?

Freelancing is working as a self-employed person. A freelancer is a service provider who sells his or her services to corporate clients.

How to go from employee to freelancer?

To go from employee status to freelance status, all you have to do is set up a business and then invoice your clients for your services. It is possible, under certain conditions, to combine freelance assignments with a salaried job.

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