Laws and Policies in France

Employment Contracts in France

Employment is governed by the French Labour Code, collective agreements, and EU regulations.

Mandatory Contract Requirements

Contracts must be in writing and include:

• Job title & responsibilities
• Salary and pay schedule
• Working hours
• Workplace location / remote policy
• Applicable collective bargaining agreement (CBA)
• Probation period
• Benefits package
• Termination terms

Types of Employment Contracts

• CDI (Indefinite-term contract): Most common and favored under French law
• CDD (Fixed-term contract): Allowed only with valid reasons (project, seasonal, replacement)
• Part-time contracts
• Apprenticeship or professionalization contracts
• Freelancer contracts (must avoid misclassification)

Probation Period

• Workers: up to 2 months
• Technicians & supervisors: up to 3 months
• Managers/executives: up to 4 months
• Renewable once (if allowed by CBA)

CBAs often define additional contract conditions.

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Working Hours in France

• Standard workweek: 35 hours
• Hours worked beyond this are considered overtime.
• Maximum working hours:
  • 10 hours/day
  • 48 hours/week
  • Average 44 hours/week over 12 weeks
• Many industries use flexible schedules via CBAs.

Overtime Pay

• 125% of hourly wage for first 8 hours
• 150% thereafter
  (CBAs often offer more generous rates.)

Rest Requirements

• Daily rest: 11 consecutive hours
• Weekly rest: 35 consecutive hours

Remote and hybrid work are widely used, especially in tech and professional services.

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Employee Leave in France

Annual Leave

France has one of the most generous vacation systems in Europe:

• 5 weeks (25 working days) of paid annual leave
• Additional RTT days (“Réduction du Temps de Travail”) may apply for employees working more than 35 hours

Sick Leave

• Employee must present a medical certificate.
• Sick pay is shared between Social Security and the employer.
• After 3 days of waiting period, employees receive daily benefits (50% of salary) + employer top-up per CBA.

Maternity Leave

• 16 weeks (6 pre-natal + 10 post-natal)
• Can increase to 26+ weeks depending on number of children
• Paid via Social Security + employer supplement if required under CBA

Paternity Leave

• 28 days paid leave for fathers/partners
• Paid by Social Security

Parental Leave

• Parents may take extended parental leave with job protection.

Public Holidays

France has 11 public holidays, including:

• Bastille Day (14 July)
• Armistice Day
• Christmas
• All Saints’ Day
• Easter Monday

Many CBAs offer additional paid holidays.

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Employee Benefits in France

Statutory Benefits

France has mandatory social insurance that covers:

• Health insurance
• Pension contributions
• Family benefits
• Unemployment insurance
• Work accident insurance
• Disability & survivor benefits

Employer Social Contributions

France has some of the highest social costs in Europe.

On average:

• 45% of gross salary (employer contributions)
• 22% of gross salary (employee contributions)

(Varies by industry, salary level, and CBA)

Mandatory Benefits

• Health insurance (employer must provide “mutuelle”)
• Retirement contributions
• Unemployment insurance
• Daily sickness allowance
• Family allowances

Common Additional Benefits

Competitive employers offer:

• Meal vouchers (Ticket Restaurant)
• Transportation reimbursement (50% of commute cost)
• Extra health or dental coverage
• Annual bonus
• Flexible working hours
• Home office allowance

Your EOR ensures all statutory and CBA-required benefits are implemented correctly.

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Payroll & Tax in France

Payroll Currency

• Euro (EUR)

Payroll Frequency

• Monthly payroll (mandatory in France)

Income Tax

France uses a progressive income tax system from 0% to 45%, plus surcharges for high earners.

Since 2019, France uses PAYE (Prélèvement à la source) — employers must withhold tax monthly.

Employer Obligations

Employers must:

• Withhold income tax
• Pay employer social charges
• Submit monthly DSN filings
• Provide detailed payslips
• Manage benefits & insurance enrollment

A French EOR handles all tax calculations, reporting, and payments to URSSAF and other authorities.

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Employment Laws & Compliance in France

France has some of the most comprehensive labor protections in the world.

Key Regulations

• French Labour Code
• Collective Bargaining Agreements (CBAs)
• Social Security Code
• GDPR (data protection)
• Health & Safety Regulations

Termination Rules

Termination is strictly regulated and must be justified.

Valid reasons include:

• Redundancy
• Performance issues
• Misconduct
• Business restructuring

Notice Period

Depends on:

• Seniority
• Job classification
• Applicable CBA

Typical notice periods:

• 1–3 months for managers
• 1 month for non-managers

Severance Pay

Legally required for dismissals not due to gross misconduct.
Minimum:

• ¼ month salary per year (first 10 years)
• ⅓ month per year after 10 years
  (CBAs often require more generous severance packages.)

Non-Discrimination

French law prohibits discrimination based on:

• Gender
• Age
• Religion
• Ethnicity
• Disability
• Sexual orientation
• Parental status
• Political beliefs

Strict GDPR compliance applies to all employee data handling.