Employment contracts
in France.

Q: What are the main differences between the standard contract and the alternative contract in France?

The Open-Ended (CDI) contract in France: Can be used for part time or full time work for any length of time Complex termination process if there is a need to terminate it later The Fixed-term (CDD) contract: Can be used for a minimum of 1 month and a maximum of 18 months It can be renewed a maximum of 2 times and the total duration cannot exceed 18 months Automatic termination of the contract avoiding a complex termination process Allowances are paid to compensate for the precariousness and if a contract is not renewed the employee receives 10% of the total gross salary The Project-based fixed term contract: Can be used until the completion of the project for a minimum of 18 months and a maximum of 36 months It is not renewable Automatic termination of the contract avoiding a complex termination process Allowances are paid to compensate for the precariousness and if a contract is not renewed the employee receives 10% of the total gross salary

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES French / English

PAYROLL TAX 29.50% – 31.30%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

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France

Standard employment contract in France: Open-Ended (CDI)

A permanent contract (contrat à durée indéterminée – CDI) is the most common form of employment contract in France, sometimes also referred to as an unlimited contract. These are ongoing contracts with no end date and can be full-time or part-time. It must be provided in writing and include the wording “contrat de travail de portage salarial à durée indéterminée”.

An employer may only use other types of contract, such as a fixed-term contract (contrat à durée déterminée – CDD) in certain exceptional cases and as specified in the French Labor Code.

Alternative employment contract in France: Fixed Term (CDD)

A fixed-term contract (contrat à durée déterminée – CDD) is governed by law and may only be used for a limited period of time in order to carry out a specific task. It must be provided in writing a maximum of 48 hours after the start of the employment and include the wording “contrat de travail en portage salarial à durée déterminée”

It can either be for:

a fixed term with an end date (contrat à durée déterminée) in the event of the need to replace an absent employee or due to the temporary increase in business activity and volumes
or, for engineers and managers, based on the achievement of a defined object or project (contrat à durée déterminée à objet défini) such as an occasional task that is not part of the normal and permanent activity of the company OR an occasional service requiring expertise that isn’t available at the company

Are there other types of employment contracts in France?

There are other types of employment contracts in France, but the Open-Ended and Fixed-Term contracts are the main categories.

The other types of employment contract in France are:

Temporary/Agency Job Contracts (Contrat de Travail Temporaire ou d’Intérim)
Contrat de Travail CDD Senior – a fixed term contract for people aged 57 and over who have been looking for a job for more than three months
Employment for the Future (Emploi d’Avenir) – intended for unemployed people aged 16 to 25, with a niveau bac or less, who have serious difficulties to enter the job market

These contracts can only be used in specific situations and you should seek professional advice on your own specific case. Horizons provide professional local hiring expertise – contact us for more information and a quote.

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FAQs

What are the main differences between the standard contract and the alternative contract in France?

The Open-Ended (CDI) contract in France:

Can be used for part time or full time work for any length of time
Complex termination process if there is a need to terminate it later

The Fixed-term (CDD) contract:

Can be used for a minimum of 1 month and a maximum of 18 months
It can be renewed a maximum of 2 times and the total duration cannot exceed 18 months
Automatic termination of the contract avoiding a complex termination process
Allowances are paid to compensate for the precariousness and if a contract is not renewed the employee receives 10% of the total gross salary

The Project-based fixed term contract:

Can be used until the completion of the project for a minimum of 18 months and a maximum of 36 months
It is not renewable
Automatic termination of the contract avoiding a complex termination process
Allowances are paid to compensate for the precariousness and if a contract is not renewed the employee receives 10% of the total gross salary

Do Horizons offer short term fixed contacts?

Here at Horizons, we can help you hire into a 1 month to 6 month fixed term contract. However, as per French law, there must be a specific reason to require a short, fixed term contract.

The fixed-term contract in France is a precarious contract (as opposed to the permanent contract), and at the end of the contract, the employee is entitled to 10% of their salary precarity indemnity. In addition, for contracts with lengths shorter than 6 months, we apply a 50% increase on our monthly management fees.

Which French employment contract is right for me?

This will depend on your exact situation but in most cases in France, the standard contract (open-ended, indefinite-term contract) will apply. For more information and professional local hiring expertise – contact us for a quote.

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