French Employment Law: Work Contract

I. Permanent Employment Contract (CDI - Contrat à Durée Indéterminée)

The permanent employment contract (CDI) is the standard and general form of employment under Article L. 1221-2 of the French Labor Code. It is the default employment contract and must be prioritized unless justified circumstances require another type of contract.

Formal Requirements:

• A full-time CDI does not necessarily require a written contract, except for specific clauses such as probation periods or non-compete agreements. However, the employer must provide the employee with a document containing the information from the pre-employment declaration. A payslip serves as proof of the employment relationship.

• Part-time CDIs must be in writing; otherwise, they may be reclassified as full-time contracts.

  
  

Contractual Content:

• The content of a CDI is generally subject to contractual freedom, provided it complies with public policy and applicable collective bargaining agreements.

• Since November 1, 2023, employers must provide employees with mandatory information, including:

  • Identification of the parties

  • Compensation details

  • Working hours

  • Applicable collective agreements

  • Social security coverage

  • Failure to provide this information within strict deadlines may result in penalties.

Prohibited and Permitted Clauses:

• Prohibited clauses: Predetermined termination clauses, abusive salary indexation, and arbitration clauses.

• Permitted clauses: Mobility, non-compete, and training reimbursement clauses—provided they meet strict legal conditions.

II. Fixed-Term Contract (CDD - Contrat à Durée Déterminée)

A fixed-term contract (CDD) may only be used for specific and temporary tasks, as exhaustively listed by law.

Formal Requirements:

• Must be in writing and provided to the employee within two days of hiring. Failure to comply may result in reclassification as a CDI.

• The contract must specify the reason for hiring (e.g., temporary workload increase, seasonal work, or employee replacement).

Duration & Renewal:

• Maximum duration: 18 months (extendable to 24 months in exceptional cases).

• Renewable twice, unless otherwise stipulated by a collective bargaining agreement.

Termination Rules:

• Early termination is only permitted in limited cases, such as:

  • Serious misconduct

  • Force majeure

  • Medical incapacity (certified by an occupational physician)

• If employment continues after the CDD expires without a new contract, the relationship is presumed to convert into a CDI.

Conclusion: The choice between a CDI and CDD must be made carefully, considering legal requirements and specific circumstances. Non-compliance may expose employers to legal risks, particularly contract reclassification.