French labour law
In France, the Labor Code (Code du Travail) brings together most of the laws and legal regulations relating to labor law; in addition, collective bargaining agreements and collective company agreements regulate employment relationships within a company. If there is a conflict between a collective agreement and an employment contract on a particular point, the provision that is most advantageous to the employee applies.
The employment contract
Permanent employment contracts
Permanent employment contracts (Contrat à durée indéterminée – CDI) for full-time work are not subject to any special formal requirements, unless this requirement is stipulated in a collective agreement. An employment contract can also be concluded verbally – in this case, however, the employer is obliged to inform the employee in writing of the essential terms and conditions of the employment relationship in a Déclaration préalable à l’embauche – DPAE (preliminary declaration of employment) prior to hiring. This document is intended for the French collection agency for social security contributions and family benefits (URSSAF). In the event of a dispute, it can be used in proceedings before the labor court (Conseil de prudhommes) to prove that an employment contract was concluded.
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By contrast, the following contracts require the written form:
- Fixed-term contracts (Contrats à durée déterminée – CDD)
- Part-time contracs (Contrats de travail à temps partiel – CDD and CDI)
- Temporary employment contracts (Contrats de travail temporaire)
- On-call contracts, casual employment relationships (Contrats de travail intermittent)
- Apprenticeship contracts (Contrats d’apprentissage)
- Professionalization contracts (Contrats de professionalisation)
- Integration contracts (Contrats unique d’insertion)
Fixed-term contracts
In France, fixed-term employment contracts (Contrat à durée determinée – CDD) may only be concluded for the performance of a specific and temporary task, such as
- in the event of a temporary increase in the workload at the company
- to cover for a temporarily absent employee
- Seasonal employment contracts and Contrats d’usage (temporary contracts that can be renewed multiple times without restriction)
- in the field of education and vocational training
A fixed-term employment contract must be concluded in writing and contain certain mandatory contractual elements, such as the reason for the fixed term (Art. L1242-12 Code du Travail). If the mandatory contractual elements are not included, the contract is deemed to have been concluded for an indefinite period.
A fixed-term contract may be extended once if the employer and employee mutually agree to an extension after the end of the employment relationship or if the task for which the employee was hired has not been completed by the end of the intended contract term, provided that the maximum permissible duration of the fixed term is not exceeded by the contract extension.
Prior to the expiry of the agreed contract term, a fixed-term employment contract cannot be terminated without the mutual consent of the parties unless one of the parties has committed an act of serious misconduct or in the event of force majeure.
Entitlement to severance pay
In the case of fixed-term employment contracts that are not renewed or converted into permanent employment contracts, the employee is entitled to severance pay (indemnité de fin de contrat or indemnité de précarité) amounting to 10% of their gross salary. This compensation is paid at the same time as the final salary.
Working conditions
Working hours
Statutory working hours are capped at 35 hours per week.The Employment
Security Act (Loi de sécurisation de l’emploi) of June 14, 2013, stipulates a minimum weekly working time of 24 hours (part-time work), however, at the employee’s request a shorter weekly working time may be agreed for personal reasons.
In addition, the following persons do not fall under this regulation:
- Individuals under the age of 26 who are still studying
- Employees in integration programs
- Employees hired by private individuals.
Overtime work
Working overtime is permitted subject to certain conditions and in return for additional pay or equivalent rest periods ( to the extent provided for in collective agreements).
Breaks
Rest period
except in cases of particular urgency, such as rescue work, work to prevent imminent damage to machinery, or repair of damage that has already occurred (L3132-4 Code du Travail). Furthermore, the above regulations do not apply to executives (L3111-2 Code du Travail).
Employees are entitled to one day of rest per week, which is primarily granted on Sundays (except in businesses that are open on Sundays).
Night work
Salary, overtime work, and special payments
The salary is negotiated freely between the employee and employer and set out in the employment contract in the form of a gross amount, which may not be less than the statutory minimum hourly wage (Salaire minimum de croissance – Smic) applicable at that time and the wage agreements set out in collective agreements.
In addition to the basic salary, there may be benefits in kind (monetary benefits), such as company cars and bonuses, which are regulated in the employment contract or in a collective agreement.
Overtime work
Contributions and social insurance
Social security contributions are split between the employer and the employee. In France, compulsory social security contributions cover health insurance, pension insurance, supplementary pension insurance, unemployment insurance, and accident insurance. In addition, there are social security contributions known as the Contribution Sociale Généralisée (CSG) and the Contribution au Remboursement de la Dette Sociale (CRDS).
Illness
Vacation
Vacation entitlement
Vacation pay
Employers have the right to determine vacation periods within the scope of their authority to issue instructions. Although they have to take certain circumstances into account (such as the employee’s family situation or length of service), French labor law differs from German labor law insofar as German employers have to give priority to the employee’s vacation wishes over the interests of the company.
Special leave
- 4 days when getting married or up to 4 days when registering a civil partnership (PACS)
- 3 days upon the birth of a child or the arrival of a child in the household in preparation for adoption
- 2 days in the event of the death of a spouse (or registered civil partner) or a child
- 1 day when a child gets married
- day if the father, mother, father-in-law, mother-in-law, or sibling dies.
Termination of employment
Fixed-term employment contracts
Permanent employment contracts
A permanent employment contract may be terminated at any time by either the employer or the employee. If the termination is initiated by the employer, it is referred to as dismissal (licenciement), while termination by the employee is referred to as resignation (démission). The Rupture conventionnelle is a legally defined form of mutual termination that has been negotiated by both parties and is set out in a written agreement, which must include the date of termination of the employment contract and the amount of the special severance payment (Indemnité spécifique de rupture conventionnelle).
