The different types of employment contract in France

Employment contracts govern the relationship between an employer and an employee. From the traditional CDI and CDD to special contracts, discover the main types of contract applicable in France, with their particular features and obligations.

What is an employment contract?

An employment contract is defined as a reciprocal agreement between an employer and an employee, formalizing their rights and obligations. It is based on three major criteria: the provision of work, remuneration and legal subordination. The signing of a contract validates the hiring and sets essential conditions, such as duration, remuneration and working hours.

The French Labor Code requires different forms of contract, depending on the situation (permanent, fixed-term, temporary, etc.). Some are written, while others are tacit (rarely recommended). In all cases, compliance with the law guarantees employee protection and limits the risk of litigation for the employer. Hiring formalities ensure a clear declaration to social security bodies.

The different employment contracts

Open-ended employment contracts (CDI)

A permanent contract is the most common and stable form of employment contract. It has no end date, guaranteeing job security for the employee. Employers can only terminate a permanent contract for real and serious reasons (redundancy, disciplinary dismissal, contractual termination, etc.). Its main advantage: it promotes employee stability and loyalty.

The CDI may be concluded on a full-time or part-time basis, as agreed between the parties. It must contain the obligatory details (duties, place of work, remuneration, non-competition clause if applicable).

Fixed-term employment contracts (CDD)

A fixed-term contract (CDD) is a contract that meets specific, time-limited needs, such as a temporary increase in activity or a replacement. It must specify the end date or the event bringing the employment relationship to an end. Employment legislation lays down strict rules (renewal, reason, precariousness indemnity). If they are not respected, the fixed-term contract may be requalified as a permanent contract.

At the end of the contract, an indemnité de fin de mission (or prime de précarité) is paid, unless the employee goes on to a permanent contract. This bonus represents 10% of total gross remuneration. Overtime, if any, is subject to general labor legislation.

Part-time contracts

A part-time contract means working less than the statutory 35-hour week. It may be a permanent or fixed-term contract, depending on requirements. The terms and conditions (distribution of hours, days worked, etc.) must be clearly indicated in the contract.

Part-time employees enjoy the same rights as other employees, in proportion to their working hours: paid vacations, training, social security. The employer must respect a minimum number of hours, and avoid "too many hours at a time", so as not to interfere with the employee's personal life.

Temporary employment contracts

The temporary employment contract (CTT) involves three parties: the user company, the temporary employment agency and the temporary employee. The Labor Code sets out the specific cases in which this type of contract applies. The maximum duration of the contract is defined (generally 18 months), as are the special cases.

The temporary employment agency pays the employee, who also receives an end-of-assignment bonus and vacation pay. The assignment contract is favored for its flexibility and adaptability to urgent staffing needs.

CESU employment contract

The CESU (chèque emploi service universel) employment contract simplifies hiring for private individuals wishing to employ someone at home (housework, childcare, gardening, etc.). The system makes it easy to declare the employee, manage social security contributions and pay remuneration.

Thanks to CESU, the employment relationship is official and complies with legal obligations (pay slip, paid vacations, insurance, etc.). It's a fast way to avoid concealed work and benefit from any tax deductions for personal services.

Seasonal employment contracts

Seasonal contracts apply to activities linked to a specific season (grape harvest, tourism, harvests, etc.). The duration of the contract is aligned with the seasonal period, but cannot exceed the specific need. A precariousness premium is generally payable, unless the branch agreement is more favorable.

Seasonal employees can sometimes be recalled from one year to the next, with priority given to re-employment. Training and social protection rights vary according to the total duration of the contract and the provisions of the collective bargaining agreement.

The apprenticeship contract

The apprenticeship contract is designed for young people aged 16 to 29 (exceptions possible). It combines training at a CFA (apprentice training center) and on-the-job experience, with the aim of obtaining a diploma or professional qualification. Remuneration depends on age and progress in training.

Apprentices have the status of employees, subject to social security protection. Employers benefit from financial aid (contribution exemptions, hiring incentives) to encourage work-study programs. This scheme promotes professional integration and qualification.

Professionalization contract

The "contrat de professionnalisation" is aimed at jobseekers, young people under 26 or adults undergoing retraining. It combines theoretical training (at a training organization) with practical application in the workplace. It is similar to an apprenticeship, but with a broader eligibility framework.

Employers benefit from tax exemptions and reimbursements by skills operators (OPCO). The employee acquires a recognized qualification (diploma, certificate, RNCP title), boosting his or her employability. The contract lasts between 6 and 24 months.

Senior fixed-term contract

The senior fixed-term contract is reserved for job-seekers over 57, or those benefiting from a professional security contract. The aim is to facilitate the retraining or job retention of a potentially vulnerable group.

Under certain conditions, it can last up to 36 months. This scheme offers a balance between flexibility for the employer and security for the senior employee. It's the perfect response to the challenges of active ageing in the job market.

The single insertion contract

The CUI is a scheme designed to facilitate the recruitment of people experiencing difficulties in gaining access to employment. It can take the form of a permanent or fixed-term contract, and is accompanied by financial assistance for the employer to reduce the cost of wages.

The main aim of this contract is to reintegrate people into the workforce through personalized support, training and appropriate follow-up. In this way, the CUI helps to improve the employability of targeted groups (long-term jobseekers, recipients of minimum social benefits, etc.) and encourages stability in their career paths.

Fixed-term contracts of use

The CDD d'usage (CDDU) is a contract reserved for certain sectors (hotels, catering, entertainment, audiovisual, etc.) where activity fluctuates by nature. Its main specificity is that it can be concluded for a very brief assignment and renewed several times.

The CDD d'usage (fixed-term employment contract) system is subject to strict regulations, to prevent abuse and precariousness. Employers must provide evidence of constant use of this type of contract in the sector concerned, or risk having their contracts converted to open-ended contracts.

Intermittent contracts

The intermittent contract alternates periods of work and non-work. Widely used in artistic production, it meets a company's recurring but discontinuous needs (shows, festivals, events). The employee knows in advance the periods of employment.

The organization of working hours is defined in the contract (rhythm, schedules). This type of contract must comply with collective agreements that authorize the use of intermittent work. The employee retains his or her social benefits if he or she takes on several assignments over the course of the year.

The freelance administration contract

The "portage salarial" contract is a tripartite relationship: the "porté" employee, the "portage" company and the client company. The porté employee acts as a self-employed person, but benefits from the salaried status (social protection, pension contributions, insurance). They entrust administrative and accounting management to the "portage salarial" company.

This formula offers a high degree of autonomy and security for the consultant. Management fees are deducted by the "portage" company in exchange for services (invoicing, collection, declarations). Portage salarial is therefore an alternative to self-employed status.

Open-ended worksite or operations contract

Site or operation contracts are used in certain sectors (construction, engineering, IT services). It ends at the end of a specific project or operation. Unlike a fixed-term contract, it is concluded for an indefinite period, but the end of the project determines its duration.

Companies use it to gain flexibility without multiplying the number of fixed-term contracts. The employee benefits from the status of a permanent contract and, where applicable, specific compensation at the end of the operation. However, the validity of this contract depends on collective agreements authorizing this type of employment.

Lending labor

The loan of manpower (or "mise à disposition") consists of temporarily "lending" an employee to another company. This highly regulated practice must be non-profit-making (no mark-up on salary costs), and must be agreed to by the employee.

This practice can help a company to retain an employee during a period of low activity, while at the same time employing him or her in a partner structure with a specific need. The initial employment contract is not broken: only a rider formalizes the secondment.

Characteristics of the employment contract

What does an employment contract contain?

An employment contract must include the essential elements: identity of the parties, position, place of work, remuneration, duration (in the case of a fixed-term or temporary contract), any clauses (mobility, non-competition), and the trial period. Without this information, the employee may be entitled to claim reclassification as a permanent contract or other compensation.

Depending on the collective agreement, there may be specific clauses: bonuses, benefits in kind, flexible working hours. Any addition modifying the balance of the contract must be agreed in writing to avoid subsequent disputes.

Obligations of the parties

The employer is responsible for providing work, paying remuneration, ensuring safety within the company and complying with legislation (working hours, paid leave, equality, etc.). The employee, on the other hand, performs the tasks required of him/her in the context of subordination.

Obligations of loyalty and confidentiality may be added, depending on the sector (confidentiality clause, exclusivity clause). Violation of these obligations exposes the employee or employer to sanctions, or even termination for serious misconduct.

Hiring a foreign employee

When hiring a foreign employee in France, it is essential to check the employee's residence permit or work permit. A declaration prior to hiring is still required, as is verification with the relevant authorities.

A formal employment contract must be drawn up, specifying the residence permit and its period of validity. Employers who fail to meet these obligations risk penalties for undeclared work and possible refusal or withdrawal of authorization.

Managing an employment contract

How do I modify an employment contract?

In certain cases, changes to an employment contract may require the employee's agreement. This applies to changes affecting an essential element of the contract, such as remuneration, location, working hours or type of contract. In such cases, the employee's written agreement must be obtained, followed by an amendment to the contract. On the other hand, a simple change of workplace within the same geographical area may fall within the employer's power of direction.

If the employee refuses the modification, the employer can either keep the contract as it stands, or initiate a dismissal procedure. Each situation must be analyzed in the light of legislation and case law.

How do I suspend an employment contract?

The suspension of an employment contract occurs when the employee is unable to carry out his or her job, without breaking the contractual relationship. This includes paid leave, sick leave, parental leave, accident, strike, layoff, partial activity or temporary closure of the company. During this period, the subordinate relationship remains, but the employee does not always receive full remuneration.

The French Labor Code specifies the employee's rights (partial or total salary continuation, social security coverage) and obligations (medical evidence, compliance with adapted working conditions). At the end of the suspension period, the employee must return to his or her job or to a similar position.

How to terminate an employment contract

Termination of an employment contract varies according to its form. In the case of a permanent employment contract, termination is by resignation, dismissal (economic or disciplinary) or conventional termination. In the case of a fixed-term contract, the contract is terminated at the end of the agreed term, except in the case of authorized early termination (serious misconduct, mutual agreement, hiring on an open-ended contract).

Each type of termination entails rights and obligations: notice, compensation, work certificate, France Travail certificate. In the event of irregularity, either the employer or the employee risks prosecution and heavy financial consequences.

Reclassification of the employment contract

Requalification occurs when a fixed-term or temporary contract is deemed non-compliant. The courts can then transform the relationship into a permanent contract. This risk arises if the reason for recourse is not justified, if the waiting period is not respected, or if mandatory clauses are missing.

The employer must prove the legality of the contract: clear dates, exact reason, signature, mention of obligations. Requalification is costly, as the employee receives compensation of at least one month's pay and is entitled to the benefits associated with an open-ended contract.

FAQ - Frequently asked questions

Can I sign a fixed-term contract without a specific reason?

No. In France, a fixed-term contract must be based on a legal reason: replacement of an absent employee, temporary increase in activity, seasonal employment or contract of use. Failure to do so may result in the contract being converted into a permanent contract.

How many times can a fixed-term contract be renewed?

As a general rule, a fixed-term contract may be renewed twice, up to a maximum total of 18 months (or 24 months in certain situations). Each renewal must be justified by the continuation of the original reason for the contract.

What's the difference between a trial period and a probationary period?

The probationary period allows both parties to evaluate the working relationship and freely break the contract. The probationary period (rare and subject to collective bargaining agreements) concerns a change of position or function, without breaking the initial contract.

Do interns sign an employment contract?

No. An intern is not an employee and does not sign an employment contract, but a tripartite internship agreement (between the educational establishment, the host company and the intern). As such, they do not enjoy the same rights and obligations as an employee.