French Employment Contracts: CDI, CDD, and Termination

French employment contract law is governed by the Code du travail (Labour Code) and is characterised by strong employee protections. The law distinguishes between the permanent contract (contrat à durée indéterminée, CDI), which is the normal and default form of employment, and the fixed-term contract (contrat à durée déterminée, CDD), which is exceptional and subject to strict conditions. French law regulates the formation, performance, and termination of employment contracts, with particular emphasis on protecting employees from unjustified dismissal.

The CDI: The Normal Form of Employment

The contrat à durée indéterminée (CDI) is the standard employment contract in French law. The Code du travail provides that the CDI is the normal and general form of the employment relationship. The CDI may be concluded orally or in writing, though a written contract is recommended for clarity. The CDI has no fixed duration and continues until terminated by either party or by operation of law.

The CDI gives the employee the greatest protection against dismissal. The employer may terminate the CDI only for a legitimate cause, following the prescribed procedure. The employee may resign at any time, subject to the obligation to give notice. The CDI may also be terminated by mutual agreement (rupture conventionnelle) or by retirement.

The CDD: The Exceptional Contract

The contrat à durée déterminée (CDD) is an exception to the normal CDI. The CDD may be concluded only for specific purposes defined by law: the replacement of an absent employee, a temporary increase in activity, seasonal employment, or certain other specific situations. The CDD must be in writing and must state the reason for its use.

The CDD has a maximum duration, including renewals, of 18 months (or 24 months in certain cases). The CDD may not be used to replace a striking employee or to fill a position that is permanently required by the company. The misuse of CDDs may result in the reclassification of the contract as a CDI and may expose the employer to penalties.

Trial Period

The contract of employment may include a trial period (période d’essai), during which either party may terminate the contract without notice or justification. The trial period is governed by the Code du travail and by the applicable collective agreement. The maximum duration of the trial period is set by law: two months for workers and employees, three months for supervisors and technicians, and four months for managers (cadres).

The trial period may be renewed once if the applicable collective agreement permits. The termination of the contract during the trial period does not require justification, but it must not be based on a discriminatory or unlawful motive. The employee is entitled to the salary for the period worked.

Employer Duties

The employer has several duties towards the employee. The duty to provide work (obligation de fournir du travail) requires the employer to give the employee the work agreed in the contract. The duty to pay remuneration (obligation de verser la rémunération) requires the employer to pay the salary agreed and to comply with minimum wage requirements.

The employer also has a duty of health and safety (obligation de sécurité), which requires the employer to take all necessary measures to protect the health and safety of employees. The employer has a duty of loyalty (obligation de loyauté) and must not engage in conduct that harms the employee’s rights or dignity. The employer must also respect the employee’s right to privacy.

Employee Protections

French law provides extensive protections for employees. The principle of non-discrimination prohibits the employer from treating employees differently on grounds of origin, sex, age, religion, sexual orientation, or other protected characteristics. The principle of equal treatment requires equal pay for equal work.

The employee also has the right to freedom of expression, the right to strike, and the right to join a trade union. The employer may not retaliate against an employee for exercising these rights. The employee is protected against harassment (harcèlement) and may seek compensation for harassment by the employer or by other employees.

Termination by Dismissal

Dismissal (licenciement) is the termination of the CDI by the employer. French law recognises two grounds for dismissal: personal grounds (licenciement pour motif personnel) and economic grounds (licenciement pour motif économique). Personal grounds include disciplinary dismissal for misconduct and dismissal for personal inadequacy. Economic grounds are based on the economic difficulties of the company or on technological changes.

The dismissal procedure must be followed strictly. The employer must invite the employee to a pre-dismissal meeting, explain the proposed dismissal, and allow the employee to be assisted by a representative. After the meeting, the employer must send a formal dismissal letter stating the reasons for the dismissal. The failure to follow the procedure may render the dismissal void.

Unfair Dismissal

A dismissal is unfair if it is not based on a real and serious cause (cause réelle et sérieuse). The labour court (Conseil de prud’hommes) reviews the grounds for dismissal and determines whether they are genuine and sufficiently serious to justify the dismissal. The burden of proof is shared: the employer must provide evidence of the grounds, and the employee may challenge that evidence.

If the dismissal is found to be unfair, the court may award compensation to the employee. The compensation is calculated based on the employee’s length of service, salary, and the circumstances of the dismissal. The reinstatement of the employee is possible in certain cases but is uncommon.

Redundancy

Economic redundancy (licenciement économique) is the dismissal of an employee for reasons relating to the economic situation of the company. The employer must demonstrate that the redundancy is necessary to safeguard the company’s competitiveness or to address economic difficulties. The employer must also implement a social plan (plan de sauvegarde de l’emploi) for collective redundancies.

The redundancy procedure includes information and consultation of the works council, the establishment of objective criteria for the selection of employees for redundancy, and the implementation of measures to avoid or limit the redundancies. The employee is entitled to a redundancy payment and to support in finding new employment.

Resignation and Rupture Conventionnelle

The employee may terminate the CDI by resignation (démission). The resignation must be voluntary and clear. The employee must give notice (préavis) in accordance with the law, the collective agreement, or the contract. The employee is not entitled to unemployment benefits following a voluntary resignation.

The rupture conventionnelle (mutual termination) is a procedure by which the employer and the employee agree to terminate the CDI by mutual consent. The procedure is regulated by the Code du travail. The agreement must be approved by the administrative authority (Directe), which verifies that the consent of the employee was freely given. The employee is entitled to unemployment benefits after a rupture conventionnelle.