French employment contracts: what foreign employers get wrong

France has no at-will employment. Foreign employers are often caught out by mandatory collective bargaining agreements, capped probation periods, strict working-time rules and dismissal protection that no contract clause can override.

In short — France has no at-will employment. Foreign employers are often caught out by mandatory collective bargaining agreements, capped probation periods, strict working-time rules and dismissal protection that no contract clause can override.

A French employment contract looks familiar on the surface and behaves very differently underneath. Employers arriving from the United States or the United Kingdom tend to carry over assumptions, about hiring flexibility, at-will termination and freedom of contract, that simply do not hold in France. The result is contracts that are unenforceable on key points and separations that turn into costly litigation. Here are the differences that matter most, from an employer’s standpoint.

There is no "at-will" employment in France

This is the single biggest shift. In France, an employer cannot dismiss an employee at will. Any dismissal of an employee on a permanent contract requires a real and serious cause (cause réelle et sérieuse), whether personal (performance, misconduct) or economic, and must follow a defined procedure (notably a pre-dismissal meeting and a formal notification).

A dismissal without valid cause, or one that skips the procedure, is not void in most cases, but it exposes the employer to damages set by reference to a statutory scale based on seniority. Planning the exit is therefore part of planning the hire, not an afterthought.

The permanent contract (CDI) is the default

France distinguishes the open-ended contract (CDI) from the fixed-term contract (CDD). The CDI is the rule. A CDD can only be used in specific, statutorily listed situations (replacing an absent employee, a temporary increase in activity, seasonal work, and so on), for a limited duration.

Using a fixed-term contract outside these cases is a frequent and expensive mistake: the contract can be reclassified as a CDI, with financial consequences. "We’ll start them on a one-year contract to see how it goes" is exactly the reasoning French law does not allow.

A collective bargaining agreement probably applies, whether you know it or not

This is the rule foreign employers most often overlook. Most French employers are bound by a sector-wide collective bargaining agreement (convention collective) determined by the company’s main activity. It applies automatically, not because you opted in.

These agreements frequently set terms more favourable than the Labour Code: minimum salaries by classification, notice periods, severance, paid leave, sometimes bonuses or additional benefits. Drafting a contract without identifying the applicable agreement means you do not actually know your own obligations, and the employee can claim the shortfall.

Probation periods are capped and strictly regulated

A probation period must be expressly written into the contract to exist at all. For a CDI, the maximum initial length depends on the employee’s category: two months for blue-collar and clerical staff, three months for supervisors and technicians, four months for executives (cadres), and these legal ceilings are now binding, with renewal subject to strict conditions.

Breaking a probation period remains possible on each side, but it is not the open-ended freedom foreign employers expect: a notice period applies, and a break for a reason unrelated to the employee’s professional assessment can be challenged.

Working time is regulated, and 35 hours is only the starting point

The statutory working week is 35 hours, which is the threshold above which overtime is due, not an upper limit. Several mechanisms let employers organise working time differently, but each has conditions.

For autonomous employees, a day-count arrangement (forfait jours) allows working time to be measured in days rather than hours, but only under a valid collective agreement and with genuine monitoring of workload. This is a classic area of exposure for fast-growing companies, covered in detail in our article on the forfait jours.

Other points that surprise foreign employers

A few further features regularly catch newcomers out:

Paid leave is generous and mandatory: employees accrue five weeks of paid leave per year, which cannot be bought out in lieu during the contract. The contract and key documents are expected in French, and an employee can require a French version. Benefits are partly compulsory: employer-funded supplementary health cover (mutuelle) is mandatory, alongside supplementary pension schemes. Restrictive covenants are controlled: a non-compete clause is only valid if it is limited in time and space, justified by the company’s legitimate interests and, crucially, compensated by a financial consideration paid to the employee. Termination has a cost even when agreed: notice, statutory or contractual severance and, for amicable exits, a negotiated settlement all factor into the real cost of a separation. The practical lesson

A French employment contract is not a translated version of a US or UK template. It sits on top of a body of mandatory law and a sector agreement that will fill in, and often override, whatever the parties wrote. The contracts that cause problems are almost always the ones imported wholesale from another jurisdiction.

The efficient approach is to build the contract on the correct collective agreement from the start, calibrate probation and working-time clauses to the statutory limits, and think about the exit before the entry. Done properly, French employment law is perfectly workable; the cost falls on employers who discover its rules after signing.

Frequently asked questions

Can a French employee be dismissed at will?

No. Dismissing an employee on a permanent contract requires a real and serious cause and a defined procedure. A dismissal without valid cause exposes the employer to damages assessed on a statutory scale based on seniority.

What is the difference between a CDI and a CDD?

The CDI is the open-ended, default contract. The CDD is a fixed-term contract usable only in specific statutory situations and for a limited time. Using a CDD outside those cases can lead to its reclassification as a CDI.

Does a collective bargaining agreement apply automatically?

Usually yes. A sector-wide collective agreement determined by the company’s main activity applies automatically and often sets terms more favourable than the Labour Code (minimum pay, notice, severance). Employers must identify and apply it.

How long can a probation period last in France?

For a permanent contract, the initial maximum is two months for blue-collar and clerical staff, three months for supervisors and technicians, and four months for executives, subject to strict renewal conditions. The clause must be written into the contract.

Is the 35-hour week a maximum?

No. Thirty-five hours is the threshold above which overtime becomes payable. Other arrangements, such as a day-count forfait for autonomous employees, are possible under specific conditions, including a valid collective agreement.

Conclusion

For a foreign employer, the risk is not French employment law itself but the assumption that it mirrors the home country’s. It does not: no at-will dismissal, a default permanent contract, an automatically applicable sector agreement, capped probation and regulated working time. Getting the contract right from the outset, on the correct collective agreement and within the statutory limits, avoids the reclassifications and disputes that catch out companies working from an imported template. A French employment lawyer can calibrate your contracts to local rules before you hire.

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