Employment Contract in France: CDI, Dismissal | BleuLex Law
Employment law in France: CDI/CDD contracts, dismissal, URSSAF, collective agreements. Connect with independent French lawyers. Free consultation.
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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: the logic behind the reputation
French employment law has a reputation for siding with employees, and it is a fair one — but that reputation obscures its real logic: the way its sources stack up. Above the individual contract sits the Code du travail, and above that a layer of collective bargaining that often counts for more in day-to-day practice, organised across three tiers — the national interprofessional agreement (ANI), the sector-wide collective agreement (convention collective) and the company agreement. Overlook the applicable collective agreement and you have missed half the rules that actually bind you.
That architecture is why procedure beats improvisation here. The choice of contract — an open-ended CDI, a fixed-term CDD that must be strictly justified, or temporary agency work — and, above all, the ending of the employment relationship follow exact procedures, and getting them wrong is paid for before the labour court, the conseil de prud'hommes. This is where legal support makes the difference between a sound decision and an avoidable dispute.
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)
- 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
- Convocation: Letter to preliminary interview (entretien préalable), 5 working days minimum
- Interview: Explanation of reasons, employee can be assisted
- Waiting period: 2 working days minimum after interview
- Notification: Dismissal letter by registered mail with reasons
- 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.
Dismissal must have a real and serious cause (cause réelle et sérieuse): personal reasons (misconduct, inadequacy) or economic reasons (restructuring). Procedure includes preliminary interview, cooling-off period, and notification letter. For misconduct, disciplinary procedure must be followed. Employees can challenge dismissal before the conseil de prud'hommes.
Collective agreements are sector-level negotiations between employer organizations and unions. Each business sector is covered by a convention collective (e.g., Syntec for consulting, Métallurgie for industry) that sets: salary scales, working conditions, bonuses, notice periods, and benefits. Over 700 conventions collectives exist.
Standard regime: 2.5 days per month worked = 30 working days (5 weeks) annual leave. Added: 11 public holidays, RTT days if working >35h/week, seniority leave per collective agreement. Holiday pay = normal salary maintained during leave.
Essential elements: party identification, start date, job title and description, workplace, duration (CDI permanent/CDD fixed-term), remuneration and benefits, working hours, trial period (up to 4 months for cadres), applicable collective agreement. Contract must be in French. Written contract mandatory for CDD.
Legal duration: 35h/week. Daily maximum: 10h (12h exceptionally). Weekly maximum: 48h (44h average over 12 weeks). Overtime: 25% premium (first 8h) then 50%. Night work (21h-6h) and Sunday work require justification and premiums. Cadres forfait-jours: 218 days/year maximum.
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