Hiring in France

France's employment framework is built on the Code du Travail (Labor Code), one of the most detailed and employee-protective labor codes in the world. It covers everything from hiring and working conditions to termination and collective bargaining. On top of the Code du Travail, most industries are governed by collective bargaining agreements (conventions collectives) that often provide benefits above the statutory minimum. These agreements are negotiated between employer associations and trade unions, and they can set higher wages, longer notice periods, and additional leave entitlements for workers in specific sectors. When hiring through an EOR in France, the applicable convention collective must be identified and followed, which is one of the trickier parts of French employment compliance.

French employment contracts come in two main forms: the CDI (contrat a duree indeterminee), which is an open-ended permanent contract, and the CDD (contrat a duree determinee), which is a fixed-term contract. The CDI is the default and preferred contract type under French law. CDDs are only allowed for specific reasons like temporary replacement of an absent employee, seasonal work, or a defined project, and they are limited to 18 months (including renewals) in most cases. Misusing a CDD can result in it being reclassified as a CDI by a labor court, which gives the employee full permanent contract protections.

Termination in France is notably complex compared to most other countries. Employers must have a valid reason (cause reelle et serieuse) to dismiss an employee, which falls into two categories: personal grounds (misconduct, professional inadequacy) or economic grounds (redundancy due to business difficulties, technological changes, or reorganization). The process requires a formal pre-dismissal meeting (entretien prealable) with at least 5 business days' notice, a written dismissal letter sent by registered mail, and strict adherence to procedural timelines. For economic dismissals involving 10 or more employees within 30 days, employers must consult the works council and notify the labor authority (DREETS). Protected employees such as union representatives and pregnant workers have additional protections and cannot be dismissed without labor inspector authorization.

Notice periods follow seniority-based rules set by law and often extended by convention collective. The statutory minimum is 1 month for employees with 6 months to 2 years of service and 2 months for those with 2+ years. Managers (cadres) typically get 3 months under most collective agreements. Severance pay (indemnite legale de licenciement) is owed to any employee with at least 8 months of seniority: the formula is 1/4 of a month's salary per year of service for the first 10 years, then 1/3 of a month's salary per year after that. Many collective agreements provide more generous severance calculations.

France mandates 25 working days (5 weeks) of paid vacation per year, plus 11 public holidays. Beyond that, the standard workweek is 35 hours, and employees who work beyond 35 hours in companies that maintain a 39-hour schedule often accumulate RTT (reduction du temps de travail) days, which typically add 8 to 12 extra days off per year. Overtime (heures supplementaires) beyond 35 hours is paid at 125% for the first 8 hours and 150% after that, though collective agreements can adjust these rates (with a floor of 110%). Employers must track working hours carefully, and annual overtime is capped at 220 hours per employee unless a collective agreement sets a different limit.

Payroll costs in France are among the highest in Europe. Employer social charges (cotisations patronales) run approximately 40% to 45% of gross salary, covering health insurance (URSSAF contributions), old-age pension (retraite de base and complementary via AGIRC-ARRCO), unemployment insurance (assurance chomage at about 4.05%), work accidents, family allowances, and other contributions. Employee deductions total roughly 20% to 22% of gross salary. Parental leave is generous: mothers get 16 weeks of maternity leave (6 before birth, 10 after) paid at up to the daily social security ceiling of about 100 euros per day in 2026, and fathers receive 28 days of paternity leave (including 7 mandatory days). Parental leave (conge parental d'education) is available for up to 3 years per child, though compensation through the CAF is modest. France also requires employers to fund professional training contributions, typically around 1% of payroll for companies with 11+ employees.