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Why Do Companies Ask About Contract Requirements in France?
France regulates employment contracts far more strictly than many other countries, particularly around when a fixed-term contract can be used.
Companies used to more flexible markets, where fixed-term or “at-will” arrangements are common, are often surprised to learn that French law limits fixed-term contracts to specific, legally justified circumstances. Using the wrong contract type, or using a CDD without a valid legal reason, can result in the contract being automatically reclassified as permanent, along with financial penalties.
Understanding contract requirements helps companies:
- Choose the correct contract type from the start.
- Avoid reclassification risk and legal penalties.
- Draft contracts that meet French Labor Code requirements.
- Set accurate expectations around termination and notice periods.
The Main Contract Types in France
CDI (Contrat à Durée Indéterminée) — Permanent Contract
The CDI is the default and most common employment contract in France. It has no fixed end date and continues until either party ends it through resignation, dismissal, or mutual agreement (rupture conventionnelle). Termination requires a valid legal reason and adherence to specific procedures, along with statutory or contractual notice periods.
CDD (Contrat à Durée Déterminée) — Fixed-Term Contract
A CDD has a defined end date or triggering condition and can only be used for specific, legally authorized reasons, primarily:
- Temporarily replacing an absent employee
- A temporary increase in business activity
- Seasonal work
CDDs must always be in writing and must state the legal justification for the fixed term. The maximum duration is generally 18 months including renewals, with limited exceptions extending this to 24 or 36 months in specific cases. A CDD can typically be renewed up to twice within that overall limit.
CTT (Contrat de Travail Temporaire) — Temporary Agency Contract
A CTT involves a triangular relationship between the employee, a temporary work agency (ETT), and the client company. It is similar to a CDD in that it can only be used for specific, time-limited situations, but the agency, not the client company, handles payroll and administrative responsibilities.
Apprenticeship and Professionalization Contracts
These combine periods of work with formal training, primarily aimed at younger workers or career changers, and are strictly regulated by the French Labor Code.
Required Elements of a French Employment Contract
While a full-time CDI does not always require a signed written document under the strictest reading of the law, in practice virtually all employers use written, French-language contracts to protect both parties. A typical CDI or CDD includes:
- Name and address of both parties
- Job title and professional qualifications
- Place of work
- Working hours
- Compensation, including salary and any bonuses
- Paid time off entitlements
- Probationary period, if applicable
- Notice period
- Any non-compete or mobility clauses, where applicable
CDDs and part-time contracts must always be in writing and include additional details, such as the legal justification for the fixed term and, for part-time roles, the specific weekly working schedule.
In Practice
Imagine a European SaaS company hires its first Paris-based sales leader.
In other markets, the company might default to a short fixed-term contract to “test” the hire before committing further. In France, this approach creates legal exposure: a CDD cannot be used simply to evaluate fit for an ongoing role, since that is not one of the legally recognized justifications.
Instead, the company issues a CDI with a standard probationary period, which allows for a more straightforward termination process during the trial phase if the role is not a fit, while remaining fully compliant with French law.
This is a common adjustment foreign companies need to make when hiring their first employee in France.
Contract Type Comparison
| Contract Type | Duration | When to Use | Written Contract Required |
|---|---|---|---|
| CDI | No fixed end date | Standard, ongoing roles | Not always required, but standard practice |
| CDD | Fixed term, max ~18 months | Replacement, temporary surge, seasonal work | Always required |
| CTT | Fixed term via agency | Short-term staffing via a temp agency | Always required |
| Apprenticeship | Fixed training period | Training combined with employment | Always required |
Common Mistakes
Using a CDD to “Test” a Permanent Role
If a fixed-term contract does not meet one of the legally recognized justifications, courts can reclassify it as a CDI, along with associated penalties.
Relying on Verbal Agreements
While a full-time CDI has narrow exceptions to written-form requirements, verbal agreements create significant risk and are strongly discouraged in practice.
Missing Mandatory CDD Details
A CDD without a stated legal justification, or without required details like the minimum term for open-ended project-based contracts, is vulnerable to reclassification.
Ignoring Applicable Collective Bargaining Agreements
Many sectors in France are governed by collective agreements that add requirements beyond the base French Labor Code, including probation length and notice periods.
Overusing Fixed-Term Contracts
Repeated back-to-back CDDs for the same role, especially without respecting required waiting periods between contracts, can trigger reclassification as permanent employment.
Hiring Through an EOR in France
Given the complexity and strict enforcement of French contract law, many international companies use an Employer of Record to manage compliance. The EOR typically handles:
- Drafting legally compliant, French-language CDI or CDD contracts
- Ensuring CDD usage meets legal justification requirements
- Applying correct probation periods and notice terms
- Managing mandatory pre-hire declarations (DPAE)
- Ongoing compliance with the French Labor Code and applicable collective agreements
This allows companies to hire confidently in France without needing deep in-house expertise in French contract law.
Bottom Line
French employment contracts are built around the CDI as the default, ongoing employment relationship, with the CDD reserved for narrow, legally justified, temporary situations. Using the wrong contract type, or misusing a CDD, creates real legal and financial risk, including reclassification as a permanent contract. For companies without in-house French employment law expertise, working through a local entity's HR team or an Employer of Record is often the safest way to issue compliant contracts from day one.
experts@adtsolution.com
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