We often write about contracts of employment in France because they are a frequent source of confusion for UK and international businesses. This article builds upon our previous summaries of French contract of employment terms, which we recommend reading together for a far-reaching overview.
To further clarify, here we will answer some of the most common questions about French employment contracts.
“Can I offer my French employees zero-hours contracts?”
Zero-hours contracts do not exist in France, because of the legal need for guaranteed working hours and a defined contract of employment.
The standard French employment contract is permanent and full time, with part-time contracts offered for a minimum of 24 hours per week unless stated otherwise in the company’s convention collective. It is also possible for the employee to request a personal exception to the minimum part-time contract hours, which they must do in writing.
“What other considerations must be made for part-time contracts?”
An employee is considered part-time if they work any less than the statutory 35-hour working week. The contract must include a written schedule that shows how the employee’s working hours are spread across the week or month, along with terms for altering this schedule.
A part-time contract may also request that the employee works an additional 10% of their contractual hours as heures complémentaires, which are paid at an increased rate.
“Can I keep a fixed-term contract running indefinitely?”
In France, a fixed-term contract (contrat à durée determinée/CDD) can only be used in specific and legally-authorised situations: including seasonal employment, replacing a temporarily absent employee, and providing support for peak business periods.
As such the CDD must have a pre-determined end date, although this can remain open under certain circumstances (such as replacing a temporarily absent employee whose return date is not confirmed). Usually, it will have a maximum duration of 18 months, and can only be ended prematurely due to gross misconduct or by mutual agreement.
Note that it is particularly important for a CDD to be provided in written French, and for its terms to be properly agreed and signed by the employee, to avoid being legally re-classified as a permanent contract. Should a fixed-term contract end without becoming permanent, the employee is then entitled to a ‘precariousness’ indemnity of 10% of the contract’s total gross remuneration.
“Can forfait-jour agreements apply to all employees?”
Only two types of employees may enter into a forfait-jours agreement: executives (cadres) who do not work to a set timetable, and those who have genuine autonomy over their working time.
Forfait-jour agreements replace the standard 35-hour working week with a set number of days (usually 218) worked per year. Extra rest days (usually 8-10) are provided to compensate for overtime, which cannot be worked under forfait-jours due to the removal of maximum daily and weekly working hours.
Working under forfait-jours offers autonomy and flexibility that are viewed as important benefits, so are useful for both recruitment and retention. However, certain employer conditions must be met, such as regularly ensuring the employee can maintain effective work-life balance. A company agreement (or appropriate convention collective provisions) and contractual clauses are also required to establish forfait-jour agreements.
“Can I offer health insurance as an employee benefit in my French company?”
In France, employee health insurance (mutuelle) is a mandatory requirement, so it will not be seen as a benefit. Mutuelle insurance provides ‘top up’ cover for health costs not automatically reimbursed by the French state, and employers must contribute at least 50% of its cost.
French employers are also obliged to offer prévoyance insurance to their cadres, which covers personal risk and must at least offer a death in service benefit. Non-cadres may also be entitled to prévoyance under the company’s convention collective.
(Our guide to choosing mutuelle and prévoyance cover may be helpful, as there is a wide range of potential options that can quickly become confusing).
We are very happy to provide further guidance on French contracts of employment, tailored to your company. Please use this link to contact us, or read more about our French HR services here.