Employment Law France 2025 | Contracts, Dismissal, URSSAF | BleuLex Law

Employment Law France 2025 | Contracts, Dismissal, URSSAF

Employment law in France: contracts, dismissal, collective agreements, URSSAF contributions. Complete guide for employers and employees.

8 min read Updated: Décembre 2025

In summary: French employment law features the 35-hour workweek and extensive collective bargaining through conventions collectives. Employer social contributions average 42% via URSSAF. Minimum wage (SMIC) is approximately €1,767 gross/month in 2025. Dismissal must have real and serious cause and can be challenged before the conseil de prud'hommes.

French Employment Law

Employment law in France is characterized by strong employee protections, the iconic 35-hour workweek, and extensive collective bargaining. Working conditions are determined by law (Code du travail), collective agreements (conventions collectives), and individual contracts.

Social contributions are collected by URSSAF, while disputes are handled by the conseil de prud'hommes (labor tribunal).

Types of Employment Contracts

CDI - Permanent Contract (Contrat à Durée Indéterminée)

The CDI is the standard contract in France and the legal default. It provides job security and can only be terminated for real and serious cause.

CDD - Fixed-Term Contract (Contrat à Durée Déterminée)

CDD can only be used for specific, limited reasons: temporary replacement, seasonal activity, increased workload. Maximum duration: 18 months (renewals included) in most cases. Written contract mandatory.

Temporary Work (Intérim)

Used for temporary needs through a staffing agency (entreprise de travail temporaire). The agency is the legal employer. Same limitations as CDD.

Contract Type Characteristics Formalities
CDI Indefinite duration, standard form Written recommended
CDD Max 18 months, specific grounds Written mandatory
Intérim Via staffing agency Tripartite contract
Part-time Min 24h/week (exceptions) Written schedule mandatory
Apprenticeship Alternating work/study Specific contract, CFA required

Collective Agreements (Conventions Collectives)

Every French company falls under a collective agreement based on its main activity. The convention collective sets sector-specific rules beyond the Code du travail.

Major Collective Agreements

Convention Sector Key Features
Syntec Consulting, IT, Engineering Forfait-jours common, detailed salary grid
Métallurgie Industry, Manufacturing Comprehensive benefits, seniority bonuses
Commerce Retail, Wholesale Sunday work rules, sales bonuses
HCR Hotels, Restaurants, Cafés Specific schedules, tips treatment
Banque Banking, Finance High minimum salaries, profit-sharing

Remuneration

Minimum Wage (SMIC 2025)

  • Gross monthly: ~€1,767 (35h/week)
  • Gross hourly: ~€11.65
  • Annual revaluation: January 1st (indexed to inflation)

Common Benefits

  • Meal vouchers (titres-restaurant): Up to €13/day, 50-60% employer contribution
  • Transport allowance: 50% of public transport costs mandatory
  • Profit-sharing (intéressement/participation): Mandatory in companies >50 employees
  • Company car: Benefit in kind (avantage en nature)
  • Supplementary health insurance (mutuelle): Mandatory employer contribution
  • 13th month/bonuses: Often provided by convention collective

Dismissal in France

Grounds for Dismissal

  • Personal reasons: Misconduct (faute), professional inadequacy, inability
  • Economic reasons: Restructuring, position elimination, economic difficulties
  • Gross misconduct (faute grave): Immediate dismissal without notice
  • Serious misconduct (faute lourde): Intentional harm to employer

Dismissal Procedure

  1. Convocation: Letter to preliminary interview (entretien préalable), 5 working days minimum
  2. Interview: Explanation of reasons, employee can be assisted
  3. Waiting period: 2 working days minimum after interview
  4. Notification: Dismissal letter by registered mail with reasons
  5. Notice period: Per convention collective and seniority

Severance Pay (Indemnité de licenciement)

Legal minimum: 1/4 month salary per year of seniority (first 10 years), then 1/3 month per year. Convention collective often provides higher amounts.

URSSAF Social Contributions

Contribution Type Employer Rate Employee Rate
Health insurance ~13% -
Old-age pension ~8.5% ~6.9%
AGIRC-ARRCO ~7.9% ~4.0%
Unemployment ~4.0% -
Family allowances ~3.5% -
Work accidents Variable (~2%) -
Total approximate ~42% ~22%

Working Time

  • Legal duration: 35 hours/week
  • Daily maximum: 10 hours (12 hours exceptionally)
  • Weekly maximum: 48 hours (44 hours average over 12 weeks)
  • Overtime: +25% (hours 36-43), +50% (from 44th hour)
  • RTT: Compensatory time off if working >35h/week
  • Forfait-jours: 218 days/year max for autonomous cadres
  • Night work: Between 21h and 6h, requires justification

Frequently Asked Questions

Employer contributions represent about 42% of gross salary on average. They cover: social security (health, retirement, family), unemployment insurance (Pôle emploi), supplementary pension (AGIRC-ARRCO), training, and work accident insurance. Collection is handled by URSSAF. Various exemptions exist for low wages.

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