Employment Law in France

Contracts

Employers in France are required to provide written employment contracts detailing terms and conditions that include job responsibilities, compensation, working hours, and benefits. In France, employment contracts can be fixed-term (CDD) or permanent (CDI), depending on the nature of the job and the agreement between the employer and employee. Fixed-term employees are entitled to the same benefits as permanent employees, and fixed-term contracts are limited to 18 months, with certain exceptions allowing up to 24 months.

Termination and notice periods

In France, labor laws generally require a written notice for termination, with periods ranging from one to three months based on the employee’s length of service and professional category. In most cases, terminated employees are entitled to a warning and a fair hearing. Just cause for a dismissal includes theft, disorderly behavior, insubordination, habitual negligence of duty, lack of capability, financial irregularities, and bribery.

While it is possible to lay off employees for economic redundancy, such terminations are highly regulated by French law, and the employer must be able to provide documented evidence of serious economic difficulty, technological changes, cessation of business activity, or other valid reasons not related to the employee’s behavior or performance. The employer also must make efforts to redeploy the worker to another area and follow other strict procedures before a termination can be legally completed.

Regardless of reason for termination (personal or economic reasons), permanent employees with at least one year of service are entitled to severance pay of 25% of the gross monthly salary per year of service for up to 10 years, and 33.33% for each year beyond that. There is no statutory gratuity payment in France; however, additional compensation may be provided based on employment contracts or collective agreements. As your employer of record (EOR) in France, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with labor laws and minimize legal risks.

Probation periods

In France, probation periods are indirectly addressed in local law, generally lasting two to four months in the private sector, and up to one year in government employment, depending on the role and collective agreements.

Working hours and overtime

The legal standard workweek in France is 35 hours per week, with no more than 10 hours per day. Legally, an employee cannot work for more than 48 hours in a single week. Over any 12-week period, employees cannot average more than 44 hours per week.

Any time worked beyond 35 hours is considered overtime and must be compensated by overtime pay. This overtime pay is often stipulated in collective bargaining agreements, but by law, cannot be less than 110% an employee’s regular rate. If outlined ahead of time in a collective bargaining agreement or employment contract, employers may offer the equivalent amount of rest time, known as réduction du temps de travail (RTT), in lieu of overtime pay.

Taxes

In France, probation periods are indirectly addressed in local law, generally lasting two to four months in the private sector and up to one year in government employment, depending on the role and collective agreements.

Employer payroll contributions

France’s extensive social security system, known as the Sécurité Sociale, is funded partly by employer contributions. Employers in France must contribute to numerous national funds, which can amount to up to 45% of an employee’s gross salary. These include France’s healthcare system, pension fund, unemployment insurance, disability insurance, housing assistance fund, and more. As your EOR or payroll provider in France, we can ensure all necessary contributions are made.