The different types of employment contracts in France

The employment contract governs the relationship between an employer and an employee. From traditional permanent and fixed-term contracts to special contracts, discover the main types of contracts applicable in France, along with their specific characteristics and obligations.

What is an employment contract?

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

The labor code mandates different types of contracts depending on the situation (permanent, fixed-term, temporary, etc.). Some are written, while others can exist tacitly (though this is rarely advisable). In all cases, complying with the legislation guarantees employee protection and limits the risk of disputes for the employer. Proper hiring procedures ensure clear reporting to social security organizations.

The different employment contracts

The open-ended employment contract (CDI)

The permanent employment contract (CDI) is the most common and stable form of employment contract. It has no end date, guaranteeing job security for the employee. An employer can only terminate a permanent contract for a genuine and serious reason (economic or disciplinary dismissal, negotiated termination, etc.). Its main advantage is that it promotes stability and employee loyalty.

The permanent employment contract (CDI) can be full-time or part-time, depending on the agreement between the parties. It must contain the mandatory information (job title, place of work, salary, non-compete clause if applicable).

Fixed-term employment contract (CDD)

A fixed-term contract (CDD) is a contract that meets specific needs and is limited in time, such as a temporary increase in activity or a replacement. It must specify the end date or the event terminating the employment relationship. Labor law sets out strict rules (renewal, justification, end-of-contract bonus). If these rules are not followed, the fixed-term contract risks being reclassified as a permanent contract (CDI).

At the end of the contract, an end-of-assignment bonus (or precarious employment bonus) is paid, unless the employee continues on a permanent contract. This bonus represents 10% of the total gross salary. Overtime, if any, remains subject to general labor law.

The part-time contract

A part-time contract corresponds to work with weekly hours less than the legal working week (35 hours). It can be a permanent (CDI) or fixed-term (CDD) contract, depending on the needs. The terms (distribution of hours, days worked, etc.) must be clearly stated in the contract.

Part-time employees have the same rights as other employees, in proportion to their working hours: paid leave, training, and social security. Employers must respect a minimum number of hours and avoid excessively fragmented schedules to protect the employee's personal life.

The temporary employment contract

A temporary employment contract, or temporary work contract (CTT), involves three parties: the user company, the temporary employment agency, and the temporary worker. The specific circumstances under which this type of contract applies are outlined in the labor code. The maximum contract duration is regulated (generally a maximum of 18 months), as are the specific circumstances.

The temporary employment agency pays the employee, who also receives a precarious employment bonus (end-of-assignment allowance) and compensation for accrued but unused vacation time. Temporary assignment contracts are preferred for their flexibility and adaptability in cases of urgent staffing needs.

The CESU employment contract

The CESU (universal service employment voucher) employment contract simplifies hiring for individuals who wish to employ someone at home (housekeeping, childcare, gardening, etc.). This system makes it easy to declare the employee, manage social security contributions, and pay wages.

Thanks to the CESU (Universal Service Employment Voucher), the employment relationship is official, complying with legal obligations (pay slips, paid leave, insurance, etc.). It's a quick way to avoid undeclared work and benefit from potential tax deductions for personal services.

The seasonal employment contract

Seasonal contracts apply to activities linked to a specific season (grape harvest, tourism, crops, etc.). The duration aligns with the seasonal period, without exceeding the temporary need. A precarious employment bonus is generally payable, unless a more favorable industry agreement exists.

Seasonal workers may sometimes be called back from one year to the next, benefiting from priority for rehiring. Training and social protection rights vary according to the total duration of the contract and applicable collective bargaining agreements.

The apprenticeship contract

Apprenticeship contracts are for young people aged 16 to 29 (exceptions may apply). They alternate between training at a CFA (apprenticeship training center) and practical experience in a company, aiming to obtain a diploma or professional qualification. Remuneration is calculated based on age and progress in training.

Apprentices have employee status and are subject to social security coverage. Employers benefit from financial assistance (contribution exemptions, hiring incentives) to encourage apprenticeships. This system promotes integration and professional development.

The professional training contract

The professional training contract is aimed at job seekers, young people under 26, or adults retraining for a new career. It combines theoretical training (at a training organization) with practical application in a company. It's a work-study program, similar to an apprenticeship, but with broader eligibility criteria.

The employer benefits from exemptions and funding from skills development organizations (OPCOs). The employee acquires a recognized qualification (diploma, certificate, RNCP certification), enhancing their employability. The contract duration ranges from 6 to 24 months.

The senior fixed-term contract

The fixed-term contract for seniors is reserved for people over 57 years of age who are seeking employment or benefiting from a professional retraining contract. Its objective is to facilitate the retraining or continued employment of a potentially vulnerable population.

The duration can reach 36 months under certain conditions. This scheme offers a balance between flexibility for the employer and security for the senior employee. It is a suitable response to the challenges of active aging in the labor market.

The single integration contract

The CUI (Contrat Unique d'Insertion - Single Integration Contract) is a scheme that facilitates the hiring of people facing difficulties accessing employment. It can be established as a permanent (CDI) or fixed-term (CDD) contract and comes with financial assistance for the employer, in order to reduce salary costs.

This contract primarily aims at professional reintegration through personalized support, training programs, and tailored follow-up. The CUI thus contributes to improving the employability of targeted groups (long-term unemployed individuals, recipients of minimum social benefits, etc.) and encourages stability in their career paths.

The fixed-term contract for use

The fixed-term contract for specific purposes (CDDU) is a contract reserved for certain sectors (hotels, restaurants, entertainment, audiovisual, etc.) where activity is inherently fluctuating. Its main characteristic: it can be concluded for a very short assignment and renewed several times.

The fixed-term contract for specific purposes is subject to strict regulations to prevent abuse and job insecurity. The employer must demonstrate the consistent use of this type of contract in the relevant sector, otherwise it risks being reclassified as a permanent contract.

The intermittent contract

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

The organization of working time is defined in the contract (schedule, hours). This type of contract must comply with collective agreements or conventions that authorize the use of intermittent work. The employee retains their social benefits by working multiple assignments throughout the year.

The umbrella company contract

The umbrella company agreement is similar to a three-way relationship: the consultant, the umbrella company, and the client company. The consultant operates as a freelancer but benefits from employee status (social security coverage, pension contributions, insurance). They entrust the administrative and accounting management to the umbrella company.

This arrangement offers significant autonomy and security for the consultant. Management fees are deducted by the umbrella company in exchange for services (invoicing, debt collection, tax returns). Umbrella employment is therefore an alternative to self-employment.

The open-ended construction or project contract

A project-based or operational contract applies in certain sectors (construction, engineering, IT services). It ends upon completion of a specific project or operation. Unlike a fixed-term contract, it is concluded for an indefinite period, but the completion of the project determines its outcome.

Companies use this method to gain flexibility without relying on multiple fixed-term contracts. The employee benefits from permanent contract status and may be entitled to specific bonuses at the end of the assignment. However, the validity of this contract depends on collective bargaining agreements that authorize this type of employment.

The loan of labor

Temporary staffing (or employee placement) involves temporarily "lending" an employee to another company. It is subject to strict regulations, must adhere to a non-profit nature (no markup on salary costs), and requires the employee's consent.

This practice can help a company retain an employee during a slow period, while simultaneously assigning them to a partner organization with a temporary need. The original employment contract remains in effect; only an addendum formalizes the secondment.

The characteristics of the employment contract

What does an employment contract contain?

An employment contract must include essential information: the identity of the parties, job title, workplace location, salary, duration (if it is a fixed-term or temporary contract), any applicable clauses (mobility, non-competition), and the probationary period. Without this information, the employee can request reclassification as a permanent contract or other compensation.

According to the collective agreement, there may be specific clauses: bonuses, benefits in kind, flexible working hours. Any addition that alters the balance of the contract must be agreed upon in writing to avoid future disputes.

The obligations of the parties

The employer is obligated to provide work, pay wages, ensure safety within the company, and comply with legislation (working hours, paid leave, equality, etc.). For their part, employees perform the tasks associated with their position, within the framework of a hierarchical relationship.

Loyalty and confidentiality obligations 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.

The case of hiring a foreign employee

When hiring a foreign worker in France, it is essential to verify their residence permit or work authorization. Prior declaration of employment remains mandatory, as does verification with the relevant authorities.

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

Managing an employment contract

How to modify an employment contract?

Modifying an employment contract may, in certain cases, 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. Therefore, it is imperative to obtain the employee's written consent and then draft an addendum to the contract. However, a simple change of workplace within the same geographical area may fall under the employer's managerial authority.

If the employee refuses the modification, the employer can maintain the contract as is or initiate dismissal proceedings. Each situation must be analyzed in light of the legislation and case law.

How to suspend an employment contract?

The suspension of an employment contract occurs when an employee is unable to perform their job, without terminating the contractual relationship. This includes paid leave, sick leave, parental leave, accidents, strikes, as well as layoffs, partial unemployment, or temporary company closures. During this period, the employer-employee relationship remains, but the employee does not always receive their full salary.

The labor code specifies the rights (partial or full maintenance of salary, coverage by Social Security) and obligations (medical certificate, compliance with adapted working conditions). At the end of the suspension, the employee must be reinstated to their original position or a similar one.

How to terminate an employment contract?

Termination of an employment contract varies depending on its form. For a permanent contract (CDI), there are resignation, dismissal (economic or disciplinary), or a negotiated termination. For a fixed-term contract (CDD), the contract ends on the agreed date, unless early termination is authorized (serious misconduct, mutual agreement, or hiring on a permanent contract).

Each type of termination entails specific rights and obligations: notice period, severance pay, certificate of employment, and France Travail certificate. In the event of irregularities, the employer or employee may face legal action and significant financial consequences.

The reclassification of the employment contract

Reclassification occurs when a fixed-term contract (CDD) or temporary work contract is deemed non-compliant. The courts can then convert the relationship into a permanent contract (CDI). This risk arises if the reason for using such a contract 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, and mention of obligations. Reclassification is costly, as the employee receives compensation of at least one month's salary and may be entitled to benefits associated with a permanent contract.

FAQ - Frequently Asked Questions

Can I enter into a fixed-term contract without a specific reason?

No. In France, a fixed-term contract (CDD) must be based on a legally valid reason: replacement of an absent employee, temporary increase in activity, seasonal work, or a contract for a specific purpose. The absence of a valid reason can lead to the contract being reclassified as a permanent contract (CDI).

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

As a general rule, a fixed-term contract can be renewed a maximum of two times, up to a total of 18 months (or 24 months in certain situations). Each renewal must be formalized in an addendum, justified by the continuation of the initial purpose.

What is the difference between a trial period and a probationary period?

The trial period allows each party to assess the working relationship and freely terminate the contract. The probationary period (rare and subject to collective agreements) typically involves a change of position or function, without terminating 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 (educational institution, host company, and intern). Therefore, they do not have the same rights or obligations as an employee.