I live in France and the feeling I get talking to small business owners and my French friends who work in these environments is that everyone knows the system i

I live in France and the feeling I get talking to small business owners and my French friends who work in these environments is that everyone knows the system is broken and simply accept that the only way things can work is through liberal bending of the rules. Business owners abuse CDD contracts, effectively running full time employees on rolling short term contracts (making it easier to hire and fire). Lots of employees work beyond 35 hours a week, with any hours over the 35 limit paid cash in hand i.e. black. A lot of businesses that deal with cash (garages, repair men, small bed and breakfasts, florists etc.) regularly declare much less turnover than they should. Newsagents, butchers etc. usually use family members to help out and pay them in cash (because they need staff but can't afford the tax burden if they were to legitimately hire them). It's not uncommon for pool installation or irrigation companies (i.e. the ones who fit sprinkler systems in your garden) to offer to quote a job in two parts in return for a discount on the overall job price. One part will be the official invoice and the second part is paid in cash. Without bending the current tax and labour laws, most small businesses in France would simply cease to trade.