What clauses should be included in an employment contract in France?

The employment contract governs the relationship between the employer and the employee, regardless of the type of contract.

In some cases, particularly for full-time permanent contracts, the law does not always require a written contract. However, fixed-term contracts must be in writing and include certain mandatory information.

To organize the employment relationship, the contract may include various clauses. These clauses serve, in particular:

• To define the employee’s professional activities.
• To specify the working conditions.
• To protect the business’s interests.

Their content must be precise, proportionate and compliant with French employment law.

An employment contract may include a probationary period enabling both the employer and the employee to assess the professional relationship. This period enables:

• The employer to evaluate the employee’s skills in their role.
• The employee to verify that the position meets their expectations.

A probationary period is not mandatory but must be explicitly stated in a clause within the employment contract when it is included. During this period, either party may terminate the contract under certain conditions.

Length of the trial period

La durée de la période d’essai varie selon la nature du contrat et la catégorie professionnelle du salarié.

The length of the trial period varies depending on the type of contract and the employee’s professional category.

Use the simulator to calculate the length of the trial period based on the contract.

End of the probationary period

During the probationary period, either the employer or the employee may decide to terminate the contract. Termination must respect a notice period, the length of which depends on the employee’s length of service with the firm.

If the probationary period is terminated, the contract finishes at the end of this notice period, and the employer provides the employee with the termination documents.

If no termination occurs, the employment contract continues automatically.

For further information, please see our page on terminating an employment contract.

An employment contract may include a mobility clause enabling the employer to change the employee’s place of work within a defined geographical area.

This clause can be used when the firm’s organization requires a certain degree of flexibility with regard to the location of its activities.

To be valid, the mobility clause must meet several conditions.

It must, in particular:

• Be stipulated in the employment contract.
• Clearly define the geographical area concerned.
• Be justified by the firm’s organization and the employee’s duties.
• Be proportionate to the employee’s responsibilities.

The employer must inform the employee within a reasonable timeframe before implementing the relocation and take their personal circumstances into account.

In principle, the employee cannot refuse a relocation request within the geographical area specified in the employment contract. If they refuse, they could be subject to disciplinary action, which may include dismissal.

In principle, an employee can undertake several professional activities provided they comply with certain rules. Specifically, they must:

• Not engage in any activity that competes with that of their employer.
• Respect the maximum working hours as set out by law.

However, the employment contract may include an exclusivity clause prohibiting the employee from undertaking any other professional activity. This clause must state that it is necessary for the protection of the legitimate interests of the business and justified by the nature of the work to be performed.

To be valid, this clause must:

• Be included in writing in the employment contract.
• Be justified by the legitimate interests of the firm.
• Clearly define the employee’s activities and tasks.
• Be proportionate to the duties performed.

The simultaneous pursuit of activities may also be prohibited by collective bargaining agreements.

When the nature of the position warrants it, the employment contract may include a clause setting performance objectives. This clause is commonly used for certain sales or management positions.

It allows, in particular, for:

• The evaluation of employee performance.
• The calculation of a performance-linked bonus.

To be valid, a performance-based clause must:

• Be defined in writing.
• Be based on realistic and achievable objectives.
• Comply with legal and collective bargaining agreement rules relating to remuneration.

When a business pays for a significant amount of training for an employee, it can incorporate a training repayment clause into the employment contract.

This clause stipulates that the employee commits to remaining with the firm for a minimum period after the training is complete. If the employee leaves the firm before the end of the specified period, they may be required to reimburse all or part of the training costs.

To be valid, this clause must:

• Be defined in writing.
• Be signed before the start of the training course.
• Specify the cost of the training course, its duration and that it is financed exclusively by the employer.
• Include a limited commitment period.
• Define the terms of any potential reimbursement.

A non-compete clause can be included in an employment contract to protect the business’s interests following the termination of the contract.

It limits, for a specified period, the employee’s ability to undertake certain activities that compete with those of their former employer. When valid and enforceable, it entitles the employee to financial compensation.

To be valid, this clause must meet several conditions.

In particular, it must:

• Be limited in duration.
• Be limited to a specific geographical area.
• Be appropriate to the employee’s duties.
• Be proportionate to the objective pursued, namely the protection of the business’s interests.
• Provide financial compensation to be paid to the employee.

The employer may decide to waive the application of this clause under the conditions stipulated in the contract. In this case, no compensation is paid.