Fixed-Term Contracts (CDD - Contrat à durée déterminée) is a type of employment contract in France that has a defined start and end date. Fixed-term contracts in France are governed by the Code du travail, which sets out the rights and obligations of both the employer and employee.

• Maximum Duration: For most CDDs, the maximum duration is 18 months, including renewals. This applies to situations like temporary workload increases.
• Renewal Limits: Employees can only sign a maximum of three fixed-term contracts with the same employer.
• Automatic Conversion: If you exceed the 18-months limit or sign a fourth fixed-term contract, the contract automatically converts to an indefinite-term contract (similar to a permanent position)
• Justification Required: The contract should specify the objective reasons why a fixed-term contract is necessary for the position

Permanent Contracts (CDI - Contrat à durée indéterminée) are the most common type of employment contract in France, offering stability and benefits like paid vacations and more.

• No End Date: This contract has no specified end date and continues until one party terminates it with proper notice
• Greater Stability: Compared to fixed-term contracts, indefinite contracts provide more stability and predictability in your employment.
• Notice Periods for Termination: The required notice period for termination depends on your length of service with the company.
• Employee Benefits: Indefinite contracts typically come with the full range of employee benefits mandated by French labor law.

French labor law mandates a comprehensive employee benefits package

• Health Insurance: Full coverage for basic medical care.
• Life and Disability Insurance (Prévoyance): Paid entirely by the employer. Covers death benefits, short-term disability (around 50% of salary), and long-term disability (for those under retirement age with significant loss of earning capacity).
• Unemployment Benefits: Contribute to a fund providing financial support in case of job loss.
• Workers' Compensation: Covers accidents and illnesses arising from work.
• Paid Annual Leave: Minimum of 5 weeks (25 working days) per year, accruing at 2.5 days per month worked.
• Public Holidays: Paid time off for national holidays.

In France, the workforce is divided into two main categories: cadres (executive employees) and non-cadres (non-executive employees). This distinction has significant implications for work hours, compensation, and benefits.

Cadres (Executive Employees):

• Definition: "Cadres" can encompass a wider range than just managers. It can include engineers, salespeople, and other highly skilled professionals with a degree or significant experience.
• Work Hours: Cadre working hours are typically not as strictly monitored. They're expected to manage their workload and achieve results, often working overtime without extra pay. This is known as forfait jours (annual working time agreement).
• Compensation: Cadres generally receive higher salaries and bonuses compared to non-cadres.
• Benefits: There may be variations, but cadres might have slightly different benefits packages compared to non-cadres, potentially including more flexible work arrangements or stock options.

Non-Cadres (Non-Executive Employees):

• Definition: This category includes administrative staff, technicians, and other employees with more defined tasks and responsibilities.
• Work Hours: Non-cadre work hours are typically stricter, with a legal 35-hour workweek limit (with exceptions). Overtime is compensated.
• Compensation: Non-cadre salaries tend to be lower than cadres, with a focus on base salary and hourly rates.
• Benefits: Non-cadres typically receive the full range of mandatory benefits mandated by French labor law.

Public Holidays:

Annual Leaves:

French employees receive a generous amount of paid annual leave by law.

• Days: Employees accrue paid leave of 2.5 working days for each month of actual work.
• Weeks: This translates to a minimum of 5 weeks (25 working days) of paid annual leave per year.
• Employees begin accruing leave from their first day on the job. There's no waiting period.
• Certain types of leave, like sick leave or maternity leave, still count towards accruing vacation days.
• The French leave year runs from June 1st to May 31st of the following year, differing from the calendar year in most countries.
• Public Holidays: Paid public holidays (11 per year) are separate from annual leave and add to the total paid time off for employees.
• There might be limitations on how much unused leave can be carried over to the next year as per the employer.

Sick Leaves:

Employees in France are entitled to sick leave with some specific guidelines:

• Conditions: Employees need to have worked for at least 150 hours in the previous 3 months or earned a minimum salary threshold over the past 6 months to qualify for Social Security benefits during sick leave.
• Social Security Payments: If eligible, employees receive daily allowances from Social Security, typically around 50% of their gross salary with a maximum amount per day.
• Employer Top-Ups: Depending on the company and collective bargaining agreements, employers might supplement the Social Security payments to reach a higher percentage of the employee's salary (often around 90% initially). There might be a waiting period before this employer top-up kicks in.
• Initial Period: The sick leave is typically covered for a maximum of 6 months.
• Doctor's Note: Employees must provide a medical certificate from a doctor to justify their sick leave. This needs to be sent to the employer as soon as possible.
• Work Accident: If the illness is due to a work accident, the rules and benefits are different, with no waiting period and potentially higher compensation.
• Long-Term Illness: For long-term illnesses exceeding 6 months, additional social security benefits and disability programs might come into play.

Maternity Leave:

France offers generous maternity leave policies to support expecting mothers.

• Minimum: French law guarantees a minimum of 16 weeks of maternity leave, divided into:
  • Prenatal Leave: 6 weeks before the expected due date.
  • Postnatal Leave: 10 weeks after childbirth.
• Variations: The duration can be extended depending on specific situations:
  • Multiple Births: For twins, mothers receive 12 weeks of prenatal leave, and for triplets or more, it's 24 weeks.
  • Medical Complications: Up to 2 additional weeks of prenatal leave and 4 additional weeks of postnatal leave can be granted for complicated pregnancies or difficult deliveries.
  • Subsequent Children: Mothers with at least 3 children are entitled to 26 weeks of leave (8 weeks prenatal and 18 weeks postnatal).
• Social Security: Mothers receive a daily allowance from Social Security, typically around 50% of their gross salary with a maximum amount per day.
• Notice: Expectant mothers need to inform their employer of their pregnancy and planned leave dates well in advance, following specific deadlines as per French labor law.
• Doctor's Note: A medical certificate confirming the pregnancy is typically required.
• Job Security: Mothers are guaranteed their job back upon returning from maternity leave.

Paternity Leave:

In France, fathers are also well-supported with paternity leave policies to help them bond with their newborns.

• Standard Leave: Fathers are entitled to a minimum of 25 days of paternity leave following the birth of their child. This leave can be broken down into two parts:
  • Compulsory Leave: 4 days of leave must be taken immediately following the child's birth.
  • Optional Leave: 21 days can be taken within the first 6 months after the child's birth. This allows fathers more flexibility in scheduling their leave.
• Multiple Births: For fathers of twins or triplets, the optional leave period is extended to 28 days.
• Social Security: Similar to maternity leave, fathers receive daily allowances from Social Security, typically around 50% of their gross salary with a maximum amount per day.
• Eligibility: There's usually a minimum work requirement to qualify for Social Security benefits during paternity leave.
• Job Security: Fathers are guaranteed their job back upon returning from paternity leave.
• Parental Leave: France offers additional parental leave options for both mothers and fathers after the initial maternity/paternity leave period. This allows for more extended bonding time as a family

France has probation periods for both fixed-term (CDD) and indefinite-term (CDI) contracts, but with different rules:

Fixed-Term Contract (CDD):

• Probationary Period: Allowed, but with stricter limitations.
• Maximum Duration: The probationary period cannot be longer than one day per week of the total fixed-term contract duration. This translates to:
  • Maximum of 2 weeks: for contracts lasting 6 months or less
  • Maximum of 1 month: for contracts longer than 6 months
• Example: If a CDD is for 3 months, the probation period cannot be more than 3 weeks (3 months = 12 weeks, so 1 day/week x 12 weeks = max 12 days or 2 weeks).

Indefinite Term Contract (CDI):

Probationary Period: Not mandatory, but can be included in the CDI contract.

• Maximum Duration: The legal maximum duration for a probationary period in a CDI varies depending on the employee's position:
  • Workers and Employees: 2 months
  • Supervisors and Technicians: 3 months
  • Managers and Executives: 4 months

The notice period for terminating an employment contract in France depends on several factors, including the type of contract (CDI or CDD), the employee's seniority with the company, and potentially specific collective bargaining agreements:

Fixed-Term Contract (CDD):

• Notice Required: Generally, no notice period is required for CDDs, unless explicitly stated in the contract.
• Contract Termination: Either party can terminate the CDD upon reaching the end date specified in the contract.

Indefinite Term Contract (CDI):

• Notice Required: Both the employer and the employee are required to provide a notice period before terminating a CDI.
• Minimum Notice Period: The legal minimum notice period varies depending on the employee's seniority:
  • Less than 6 months: 1 month notice
  • 6 months to 2 years: 1 month notice for the employee, 2 months for the employer
  • Over 2 years: 2 months’ notice for the employee, 3 months for the employer

French labor law regulates overtime work to ensure employee well-being and fair compensation.
Excess Hours: Any hours worked beyond the legal limit of 35 hours per week constitute overtime.

Overtime Compensation:

• Increased Rate: Overtime work is compensated at a higher rate than regular salary.
• Rate Variations: The specific overtime rate depends on the number of overtime hours worked
  • First 8 Hours: At least 125% of the regular hourly rate
  • After 8 Hours: At least 150% of the regular hourly rate
• Collective Agreements: Industry-specific collective bargaining agreements might dictate different or even more favorable overtime pay rates.

Compensatory Rest:

• Alternative to Payment: Employers can offer compensatory rest in exchange for overtime pay, partially or entirely, if agreed upon by the employee.
• Rest Equivalency: The rest time provided should equal the amount of overtime worked. (1 hour of overtime = 1 hour 30 minutes of compensatory rest).

Annual Overtime Quota:

• Limit on Overtime: There's a legal annual quota on overtime hours that can be worked, generally 220 hours per year.

In France, employees are covered against work-related injuries and illnesses through a comprehensive social insurance system for occupational risks.

Compensation:

• Daily Allowances: Employees receive daily allowances from the first day of their work stoppage due to the accident or illness. This is paid by the Social Security system and typically covers around 60% of the gross salary initially, increasing to 80% as of the 29th day of leave, with a maximum daily amount.
• Employer Top-Ups: Depending on the company and collective bargaining agreements, employers might supplement these allowances to reach a higher percentage of the salary (often around 90% initially).
• Medical Expenses: All medical expenses related to the work injury or illness are covered by the public health insurance fund.

Benefits:

• Permanent Disability: If the accident or illness results in permanent disability, the employee may be entitled to benefits based on the severity of the impairment.

Responsibilities:

• Employee: Employees must report the work accident to their employer within 24 hours.
• Employer: Employers have a legal obligation to ensure employee safety and must report the accident to the relevant Social Security office within 48 hours.

Step 1: Cooperation Agreement/MSA

• We will share Intake Sheet to collect company information.
• Based on the data provided in intake sheet, we will prepare Cooperation Agreement/MSA for review and signature.

Step 2: Assignment Specification (Purchase Order)

• We will prepare Assignment Specification based on the candidate information provided in the Intake Sheet for review and signature.

Step 3: Employment Agreement/Offer Letter

• Once the AS is signed, we will prepare draft Employment Agreement for review.
• After the approval, we will share the final Employment Agreement to the candidate for review and signature.
• We will share the final copy of the signed EA to all the parties.

Step 4: Onboarding process
We will share the following documents with the candidates for signature

• Employment Agreement
• Personal Questionnaire Form
• Bank Account details form (for payment purposes)
• BIA Document
• SEPA Mandate
• Mutuelle Registration Form
• Once the documents are received, we will register the employee with authorities.

Step 5: Immigration Process (If any)

• Our Finance team will share the invoice for immigration process if required.
• Once the immigration invoice is cleared, we will start the onboarding process.

• Intake Sheet (Onboarding Sheet)
• Passport Copy
• Residence permit/ Work permit (if any)
• Updated CV
• Higher Degree Certificates.
• RIB Document

Offboarding process can be classified into 4 categories.

1. Termination of a fixed term contract without extension
2. Pre mature termination by mutual consent
3. Premature termination by the employee
4. Premature termination by the employer

1. Termination of a fixed term contract without extension

• Generally, fixed-term contracts end automatically upon the expiry date or completion of the specific task as outlined in the contract.
• Employees are not entitled for severance pay, but final pay should include salary for the period worked during the final pay cycle, along with any accrued but unused vacation pay.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

2. Premature termination based on mutual consent

• This happens because of resignation or both the parties decide to terminate the contract mutually. In any case the standard notice period should be respected.
• While not mandatory, severance pay is a common element of mutual termination agreements. The amount can be negotiated and may depend on factors like the employee's tenure and salary.
• The employer may agree to pay the employee a lump sum instead of requiring them to work through the notice period.
• Final pay should include salary for the period worked during the final pay cycle, along with any accrued but unused vacation pay.
• If the employee earned any holiday pay during their employment but did not take all their entitled vacation days, they are compensated financially for the unused days.

3. Premature termination by the employer

In France, employers can prematurely terminate an employment contract (be it a permanent CDI or fixed-term CDD) but face stricter regulations compared to terminations by employees.

Legal Grounds for Termination:

• Dismissal for Cause (Licenciement pour Cause Réelle et Sérieuse): This is the most common reason and requires the employer to demonstrate a serious and legitimate reason related to the employee's performance, capacity, or misconduct. Examples include poor performance, disciplinary issues, or redundancy due to economic reasons.
• Dismissal for Economic Reasons (Licenciement Economique): When the company faces economic difficulties and needs to restructure or reduce workforce. Strict procedures regarding selection criteria and potential redeployment efforts must be followed.

Termination Procedures:

• Formal Procedures: French law dictates specific procedures employers must follow to ensure a fair dismissal process. This includes a pre-dismissal interview with the employee and potentially involving employee representatives.
• Notice Period: Employers must provide a written notice period to the employee, depending on their seniority as per French labor law (similar to notice periods for employee resignation).
• Severance Pay: Unless there's serious misconduct by the employee, a severance package is typically mandatory. The amount is calculated based on salary and seniority.

Exceptions to Strict Procedures:

• Gross Misconduct (Faute Grave): If the employee commits a severe breach of contract or misconduct (e.g., theft, violence), they can be dismissed without notice and without severance pay.

Alternatives to Termination:

• Mutual Termination Agreement (Rupture Conventionnelle Homologuée): This allows for a negotiated settlement with the employee, including a severance package, to avoid a contested dismissal process.