Comply with French employment laws and issue compliant French employment contracts using our PEO Services.
When setting up your business in a new country, one of your first priorities will be establishing a thriving team in your new country. Outlining a fair and well-constructed employment contract is an essential step to including this.
French employment laws state that employers must provide employees with the terms of their employment upon starting. These can be provided in writing or orally, however, it is highly recommended that written terms of employment are issued in writing to avoid discrepancies and disputes at a later date.
Likewise, there are some circumstances which require a written employment contract, including:
- If Collective Bargaining Agreements (CBAs) - a written agreement set out by trade unions - requires it
- If employment is part time, temporary or fixed term
- If the employment is an apprenticeship
- If it is a professionalisation employment contract
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Overview of French employment contracts
As outlined on the Business France website, when an employment contract is in written form it must specify:
- The identity and address of the parties.
- The job title and professional qualifications.
- The place of work.
- Working time.
- Remuneration (salary and bonuses)
- Paid leave.
- Notice periods in the event of contract termination.
Despite this generic overview, there is no one set template for writing an employment contract in France. As an overarching rule, terms set out in an employment contract must abide by the French Labour Law. Meanwhile, employers must determine which Collective Bargaining Agreement (CBA) applies to their business and therefore employees and employment contracts. Failure to do so go result in legal penalties such as fines.
Given the complexity of writing compliant French employment contracts, and the consequences that arise if contracts are not compliant, most businesses prefer to outsource employment contracts to guarantee compliance and take liability from their shoulders. Read on to see how our French PEO services can support your business with employment contracts.
What types of employment contracts are there in France?
There are two main types of employment contracts in France. The first, a contrat de travail à durée indéterminée (CDI) is a permanent employment contract and is the most popular, and indeed encouraged, type of employment contract in France. There is no set termination date to a CDI and therefore either employer or employee can terminate the employment at any time, as per the conditions set out in the employment contract.
Secondly, a contrat de travail à durée déterminée (CDD) is a fixed term contract that outlines employment for a specific period of time, usually to complete a project or specific task. This type of employment contract must be issued in writing.
It is vital that businesses understand these contract types along with their respective pros and cons so they know which is best-suited for their employees and their company.
Can I change an employment contract?
Yes, employment contracts can be changed under French employment laws. However, employers must inform employees of any changes and give them two months to accept or decline the changes. If an employee does refuse the new employment terms without a valid reason, then it can warrant a dismissal.
Do I need to translate an employment contract?
All written employment contracts in France must be translated. Failure to do so can make them invalid. Translation into other languages while not mandatory is recommended in order to avoid mis-translations and therefore discrepancies between employees and employers.
How do I write a French employment contract?
Before you begin writing an employment contract, you must first establish whether you require a CDI or CDD. From here, it is vital that employers must determine which Collective Bargaining Agreement (CBA) applies to their business and therefore employees and employment contracts. A CBA is a contract between a trade union and an employer that outlines some terms of employment such as wages, working hours and holiday entitlement. An employer in France must adhere to the appropriate CBA or face legal action such as fines.
A combination of terms highlighted in a CBA, The French Labour Code and the points highlighted on the Business France website must then be included in an employment contract. However, these provide a foundation to an employment contract and are by no means an exhaustive list. Instead, this content could, and indeed should, be supplemented with further necessary clauses on the employment relationship which of course varies from case to case.
Failure to include the above and construct a comprehensive employment contract can lead to disputes with employees and even legal proceedings. It is therefore recommended that new businesses in France use a PEO, EOR or portage salarial to help with producing employment contracts.
Why use a PEO partner to manage French employment contracts?
Producing and issuing compliant French employment contracts is a complex process that is laden with risk. Failure to comply with the various stipulations around employment contracts can cause employment disputes as well as fines and employee lawsuits. All of this can in turn jeopardise your new expansion into France. Not to mention that employment contracts are only one task of many to overcome when expanding your business. Businesses also need to consider payroll, tax, national insurance contributions, recruitment and work visas to name but a few.
A PEO partner can take all of this from your shoulders, allowing you to focus on your company's expansion knowing that employee contracts are taken care of compliantly. At Leap29 our PEO team are up to date on the latest employment laws and contract requirements meaning we can issue contracts compliantly and promptly on your behalf.
If you want to find out more about how our PEO Services in France can support your international expansion, call our experts today on +44 (0) 1625 537 555 or email [email protected].
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