Labor law in France

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Labor law in France – Overview

Employment law in France gives employees a good level of protection and is governed by three pillars:

The French Constitution and International law, including EU law and the European Convention for the Protection of Human Rights and Fundamental Freedoms.
The French Labour Code (Code du travail) – made up of laws, regulations and decrees, the Labour Code determines nearly every aspect of French employment law
Collective bargaining agreements (Convention collective) – written agreements, entered into between one or more employee representative trade unions and one or more employer representative organisations. They govern individual and collective employment relationships, working conditions and employee benefits in a given industry (e.g., the chemical, banking and pharmaceutical industries). Collective bargaining agreements can be binding on all employers whose line of business is covered by the agreement.

Notice period laws in France

Dismissals in France

The required notice period under French law depends on the employment contract of the employee.

Permanent Contract (Contract Duration Indeterminée (CDI))

This contract may be terminated by the employer either as a result of a dismissal (for personal or economic reasons) or as a result of retirement initiated by the company.

Dismissal Notice (or immediate termination with payment in lieu):

During probation
- Less than 8 days probation: 24 hours’ notice
- 8 days to 1 month: 48 hours’ notice
- 1- 3 months: 2 weeks’ notice
- More than 3 months: 1 month notice
After probation period: 3 months’ notice

Resignation Notice:

During probation
- Less than 8 days: 24 hours’ notice
- More than 8 days: 48 hours’ notice
After probation
- 3 months’ notice

Fixed Term Contact (Contract Duration Determinée” (CDD))

Dismissal Notice (or immediate termination with payment in lieu):

Standard notice: 1 day per week of total duration of EA

Resignation Notice:

Standard notice: 1 day per week of total duration of EA

A fixed-term contract can only be terminated where any of the following occurs:

Serious or gross misconduct.
An act of God.
Mutual agreement.

In addition, an employee can terminate a fixed-term contract unilaterally if another employer offers that employee an indefinite-term employment contract.

PLEASE NOTE: Special rules apply for the Alsace-Moselle region – contact us for a free consultation for your hiring project.

Resignations in France

There is no requirement in France for employees to give a minimum notice period when resigning, unless such a stipulation exists in the employment contract. Still, one month’s notice is standard when an employee resigns.

Severance laws in France

Severance pay is only awarded if:

The employer terminates an indefinite-term contract.
The employee has the minimum length of service required by the Labour Code or an applicable Collective Bargaining Agreement (CBA). The minimum length of service has been reduced to eight months of seniority by the Macron Reform.
The dismissal is not based on serious or gross misconduct (faute grave/faute lourde). In such a case, no severance payment is due.

Severance pay depends on the employee’s length of service and any relevant CBA’s provisions. It is generally calculated on the basis of an employee’s average salary (often including bonuses as well as basic salary) during the last 12 months of employment. Employees receive statutory severance pay if no CBA applies or the CBA rate is lower than the statutory amount. Severance pay is calculated as follows:

8 months to 10 years of employment: 0.25 x monthly salary x years of employment
More than 10 years of employment: 0.33 x monthly salary x years of employment

Employment contracts can also provide for severance payments, provided that their rate is higher than that of the CBA or the statutory amount.

Employees who are unfairly dismissed can challenge their dismissal before an employment tribunal within a year following the termination of their employment contract. If a judge finds the dismissal unfair, they can grant compensation:

Irregular termination (where the severance procedure was not respected): a maximum of 1 month salary
Void termination (where the severance is declared void by a judge): a minimum of 6 months’ salary
Non-justified termination:
- Less than 1 year of employment: a minimum of 1 month salary
- More than 1 year of employment: a minimum of 3 months’ salary

For fixed term contacts, statutory severance pay is awarded for more than 8 months employment at a minimum of 10% of the total payment, which is also due in the case of expiration of a contract.

Where there has been an Irregular or non-justified termination, compensation can be due of 100% of the salary until the planned contract term.

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FAQs

What are the most relevant legal documents related to employment law in France?

The three pillars of French Labor law are:

The French Constitution and international agreements (especially EU labor agreements)
The French Labour Code (Code du travail) — the overarching piece of labor law setting out the key requirements across the country for
Collective bargaining agreements (Convention collective) — the written agreements between industry organizations/unions and employers setting the basic employment conditions for the entire industry.

Can I terminate an employee during their probationary period in France? How much notice do I need to give?

Yes. Employees can be terminated during the probation period without additional compensation, however the notice period set in the collective bargaining agreement or individual contract must be respected.

Can the employee terminate employment during their probationary period in France? How much notice do they need to give?

Yes. The employee can terminate their employment during the probation period by giving the amount of notice dictated by their employment/labor contract.

After the probationary period, what is the process to terminate employment in France?

The individual can only be terminated where there is ‘just cause’ and a specific procedure is followed. This includes:

A preliminary letter is sent to the employee outlining the issue
A pre-dismissal interview/meeting where the issue is put to the employee, with evidence, and the employee is able to respond
A certified letter of dismissal is issued, where it has been decided that the individual should be terminated.
Any required severance pay and notice periods are observed before the individual ceases work.

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