Umbrella employment (portage salarial) is a three-way relationship between an independent professional (the “employee-consultant”), an umbrella company, and a client business. The consultant finds their own assignments and negotiates their own terms just like an independent, but the umbrella company invoices the client, collects the fees, and pays a salary to the consultant: complete with a payslip, social security contributions, and the associated rights (unemployment insurance, pension, provident coverage).

For a transition manager moving from one client assignment to the next every few months, setting up a company each time would be impractical. Umbrella employment offers a stable, quick-to-activate legal framework: no company formation, employee-level social coverage, and delegated administrative management (invoicing, follow-ups, filings).

Why this status is common in transition management

In exchange for this management, the umbrella company withholds a management fee: generally between 5% and 10% of invoiced revenue, depending on volume and contract terms. What remains, after social contributions, is the transition manager’s net compensation.

What the umbrella company deducts

• A minimum monthly compensation is generally required by the umbrella company to maintain the status
• Management fees reduce the margin compared to invoicing through one’s own company
• The consultant remains legally responsible for sourcing their own assignments: the umbrella company doesn’t do commercial sourcing

The limits to know

At MT-Transition, the status chosen (umbrella employment, own company, or another structure) depends on the manager’s profile and the assignment structure: we work through this with each candidate upfront.

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