France's 2025 crackdown on undeclared work nets €1.5 billion in fines
French authorities have indeed cracked down harder on undeclared work in 2025, with Urssaf increasing warnings to employers by 25%. The push comes as the government estimates that 'au noir' employment costs the country up to €7 billion each year in lost revenue. Thousands of businesses have faced penalties for hiring workers off the books.
In 2023, Urssaf uncovered 62,000 companies and 282,000 employees involved in undeclared work through checks and preventive measures. By 2025, targeted actions against such practices had risen by 13% compared to the previous year.
Over 38,000 enforcement actions were taken against employers and workers for illegal cash-in-hand employment. A new anti-fraud bill now extends liability to parent companies when subsidiaries are caught using undeclared labour. Penalties for violations will also be issued faster, with fines delivered within 48 hours instead of the previous 15-day window.
The crackdown recovered more than €1.5 billion in unpaid social contributions and fines in 2025. While this figure was slightly lower than in 2024, it remained almost double the amount collected in 2023. Around 13% of detected fraud cases in 2025 involved misuse of tax credits through the 'Pajemploi' or 'Cesu' systems.
The government's stricter approach has led to more warnings, faster penalties, and higher recoveries. Businesses and workers caught in undeclared employment now face quicker consequences. The measures aim to reduce the estimated €7 billion lost annually to 'au noir' work.
