Recruiting temporarily with a fixed-term contract
Fixed-term contracts (contrats à durée déterminée – CDDs) allow businesses to meet temporary recruitment needs. Their use is strictly regulated by law to ensure the security of the employment relationship.
In a nutshell
- Fixed-term contracts are used only to meet a temporary need.
- The reasons for using fixed-term contracts are strictly defined by law.
- The contract must be in writing and given to the employee within two working days of hiring.
- The fixed-term contract can be renewed twice within the general limit of 18 months, except in exceptional circumstances.
- In case of irregularity, the contract may be reclassified as a permanent contract.
What is a fixed-term contract?
A fixed-term contract (contrat à durée déterminée – CDD) allows a business to recruit an employee for a specific and time-limited mission.
This contract meets a specific need of the business and cannot be used to permanently fill a position related to the normal and ongoing activity of the business.
If these rules are not respected, a judge may order the reclassification of the contract as a permanent contract (contrat à durée indéterminée – CDI).
When should a fixed-term contract be used?
International employees
For nationals of a State outside the European Union, the European Economic Area or Switzerland, engaging in paid employment in France requires holding a residence permit authorizing employment.
The law provides for several situations in which a business can use fixed-term contracts. The main reasons are:
- The temporary replacement of an absent employee.
- A temporary increase in the business’s activity.
- Seasonal jobs in certain sectors.
- Jobs for which it is customary not to use permanent contracts.
The employer must be able to objectively justify the reason for using a fixed-term contract. When the recruitment need is ongoing, the business must use a permanent contract.
A fixed-term contract can be used to replace an employee who is temporarily absent or whose employment contract is suspended. It can notably be used to replace an employee:
- Who is on sick leave or on maternity or paternity leave.
- Who is on parental leave.
- Who is on leave to start or take over a business.
- Whose employment contract is temporarily suspended.
A fixed-term contract can also be concluded to replace an employee who has temporarily switched to part-time work.
Other situations may justify hiring an employee on a fixed-term contract:
- Replacement of an employee whose employment contract is pending the start date of an employee recruited on a permanent contract.
- After the final departure of an employee, pending the actual elimination of the position.
- To temporarily replace the head of the business or a person engaged in a liberal profession.
It cannot be used to replace a striking employee.
A business may use fixed-term contracts when it experiences a temporary increase in its activity.
This increase must not be part of the normal and permanent activity of the business.
The employer must be able to demonstrate the temporary increase in workload, its one-off nature and the impossibility of absorbing it with the business’s permanent staff.
This situation can result in particular from:
- From a temporary increase in orders.
- Due to seasonal variation in activity.
- Urgent work requiring additional resources.
Some business sectors may make more extensive use of fixed-term contracts due to the temporary nature of the jobs.
These include:
- Seasonal jobs in agriculture or tourism.
- Sectors where it is customary not to use permanent contracts, as defined by law.
For further information, you can visit the dedicated page.
Fixed-term contracts for a specific purpose are reserved for the recruitment of engineers or skilled employees when an extended sector-based agreement or, failing that, a company agreement provides for it.
The law also provides for specific types of fixed-term contracts in certain particular situations. These contracts include, in particular:
- Professional integration contracts (for further information, see the dedicated page).
- Apprenticeship and professional training contracts.
- Contracts concluded within the framework of a professional retraining.
- Some contracts are specific to professional sectors (e.g. sports).
- The fixed-term contract for seniors, to encourage the hiring of senior employees in the agricultural sector.
- The grape harvest contract.
How should the contractual relationship be formalized?
Fixed-term contracts are subject to specific formalities in order to secure the employment relationship.
The fixed-term contract must be in writing and given to the employee no later than two working days after hiring. Templates for fixed-term contracts can be found on the website of the Digital Labor Code.
Adherence to these rules helps to secure the contractual relationship and avoid the risk of reclassification as a permanent contract.
The employment contract must be written in French.
A foreign employee may request a translation or a bilingual version of the contract for informational purposes.
The contract must include several mandatory pieces of information.
It must specify, in particular:
- The precise reason for using a fixed-term contract.
- The start date and end date of the contract.
- The renewal clause.
- The minimum duration when the end date is not fixed.
- The duration of the trial period.
- Job description.
- The name and qualifications of the employee being replaced, if applicable.
- Remuneration.
- The applicable collective agreement.
- The name and address of the supplementary pension fund and, if necessary, those of the supplementary insurance institution.
How can a fixed-term contract be renewed?
A fixed-term contract can be renewed under certain conditions. In principle:
- The fixed-term contract can be renewed twice, up to a maximum duration that depends on the reason for its use.
- The total duration of the contract generally does not exceed 18 months.
Terms
Renewal is possible if:
- A renewal clause is included in the contract.
- Or an amendment is offered to the employee before the end of the contract.
Some collective agreements may include specific rules regarding the maximum duration or number of renewals.
What are the grounds for termination of a fixed-term contract?
A fixed-term contract normally ends on the date specified in the contract or upon completion of the assignment. Early termination is only possible in certain situations provided for by law.
For further information, visit our dedicated page.
End-of-contract compensation
When a fixed-term contract ends, the employee generally receives a termination indemnity, known as a precarious employment bonus. This indemnity typically amounts to 10% of the total gross remuneration paid during the contract period. It may be reduced to 6% by an extended collective agreement or company-level agreement.
The precarious employment bonus is not payable in certain situations, including:
- When the employee is hired on a permanent contract at the end of the contract.
- When the employee refuses a permanent contract offered for an equivalent job.
- In the event of early termination initiated by the employee.
- In the event of serious misconduct or force majeure.
- In the case of a fixed-term contract for a specific purpose.
- In the case of certain subsidized contracts (integration contract, skills employment pathway (PEC), professionalization contract, etc.).
- In the case of a contract where the employer has committed to providing additional professional training to the employee
- In the case of a contract concluded with a young person during their school or university holidays
- In the case of a seasonal contract.
Simulate the bonus amount after the fixed-term contract
The website of the Digital Labor Code provides employers with a simulator allowing them to calculate the amount of the precarious employment bonus.
What is the waiting period in the event of successive fixed-term contracts?
When a fixed-term contract expires, the conclusion of a new fixed-term contract for the same position may be subject to a waiting period. This period corresponds to a minimum time frame that must be observed between two successive contracts.
The time limit applies even if the new contract is concluded with another employee, unless otherwise stipulated by collective agreement.
The waiting period generally depends on the duration of the previous contract. The duration of the fixed-term contract is calculated in calendar days and the waiting period in business days.
As a general rule:
- When the fixed-term contract is for less than 14 days, the waiting period corresponds to half the duration of the contract.
- When the duration of the fixed-term contract is greater than or equal to 14 days, the waiting period corresponds to one-third of the duration of the contract.
Some collective agreements may adapt these rules.
The waiting period does not apply in certain situations.
It is not required for, in particular:
- Replacing an absent employee.
- Seasonal jobs.
- Urgent work related to safety measures.Replacing a manager or a self-employed professional
At a glance
This page explains the use of fixed-term employment contracts (CDD) in France to meet a temporary recruitment need. It is based on institutional sources such as the Ministry of Labour, the French Labour Code and the Digital Labour Code. It presents information covering the conditions for using a CDD, its formalisation, renewal, termination procedures and related obligations. It uses the example of a company hiring an employee for a one-off assignment in response to a temporary business need.