COUNTRY

Written Agreements

In France, employment contracts are not generally required to be written, but certain forms of employment contracts must be in writing. Both fixed-term contracts and temporary work contracts must be written (failing to do so, the contract will be qualified as an open-ended contract. Furthermore, part-time contracts (even open-ended ones) need to be written, and a variety of clauses need to be written (ex. non-compete clauses). The employment contract exists as soon as a person (the employee) undertakes to work, for remuneration, on behalf and under the direction of another person (the employer). Only a CDI (Contract à Durée Indéterminée; full-time permanent contract) can be unwritten, all others need to be in writing. When the employee is a foreigner, he may request a translation in his language, both versions being binding, and in case of discrepancy between the versions, the one written in the employee’s language shall prevail.

A written contract is necessary when:

• An applicable collective bargaining agreement (CBA) requires it.
• It is a fixed-term, part-time, or temporary contract.
• It is an intermittent employment contract.
• It is an apprenticeship employment contract.
• It is a professionalization employment contract.
• It is a contract with the employers' group.
• It is a specific contract provided for people in difficulty, in particular, the single integration contract.

Oral Agreements

According to the French Labor Code, only the full-time permanent employment contract can be unwritten. And even if the full-time, open-ended contract remains verbal, the employer is obliged to provide the employee with a written document with the information contained in the pre-employment declaration addressed to URSSAF for social security. Oral fixed-term agreements are irrevocably deemed to be indefinite-term contracts (CDI), and oral part-time agreements are considered to be full-time contracts. The European Union (EU) law requires employers to inform workers in writing of certain material terms applicable to the employment agreement or the employment relationship within 2 months following the beginning of employment. In the absence of a written employment contract, the employee is considered a permanent employee.

Implied Agreements

The employment contract exists as soon as a person (the employee) undertakes to work, for remuneration, on behalf of and under the direction of another person (the employer). Only a full-time permanent contract (CDI) can be unwritten, therefore any implied contract will be deemed to qualify as a permanent contract (CDI). The primary sources of terms implied by French law in the employment contract are French statutory law and collective bargaining agreements. If there is a difference between the terms of the applicable statutes or the collective bargaining agreement and an individual employment contract, the CBA terms will prevail, unless the terms of the individual employment contract are more advantageous for the employee. The employment contract can only alter implied provisions if they are applied to the employee's advantage.

The statutory working hours are 35 hours per calendar week or 7 hours per day. Employees are permitted to work overtime on either a one-off basis or regularly. Employers should be cautious when employees work more than 39 hours a week because the maximum amount of overtime an employee may work is 220 hours per year.

There are more flexible systems for autonomous employees and those employed as executives, but the employer must track the hours worked accurately. Furthermore, an exemption from most working time and rest-related regulations is allowed for “managing executives,” but this is exceptional and rarely accepted by employees. The hours worked by a nighttime employee cannot exceed 8 per day (or 40 per week), except under certain circumstances authorized by a labor inspector.

In France, the following holidays are observed:

• New Year (Jour de l'An) - January 1
• Easter Monday (Lundi de Pâques) - date subject to change every year
• Labor Day (Fête du Travail) - May 1
• Victory Day 1945 (Fête de la Victoire) - May 8
• Ascension Day (Jour de l'Ascension) - date subject to change every year
• Whit Sunday (Pentecôte) - date subject to change every year
• Whit Monday (Lundi de Pentecôte) - date subject to change every year
• French National Day (Fête Nationale de la France) - July 14
• Assumption Day (Assomption) - August 15
• All Saints' Day (Toussaint) - November 1
• Ceasefire of Compiègne (Armistice 1918) - November 11
• 1st Christmas Holiday (Noël) - December 25
• 2nd Christmas Holiday (Lendemain de Noël) - December 26

Only Labor Day (May 1) is a compulsory holiday. All other holidays are defined by a collective bargaining agreement, in the absence of which, it becomes the responsibility of the employer. Employers may also decide to grant a paid holiday on a bridge day (a day preceding or following a public holiday).

According to the Employment Code of France, full-time employees earn 2.5 days of annual leave every working month. The total duration of annual leave cannot exceed 30 working days in a year. Employees under 21 years with dependent children are granted two extra days of leave per child. The annual leave in France runs from June 1 to May 31 of the following year, although this can be changed by collective agreements. Annual leave cannot be replaced by compensatory allowance. Employees are paid leave allowance according to their average salary.

The duration of the annual leave used at one time cannot exceed 24 working days. Leave of 12 working days or fewer must be continuous.

Employees are entitled to paid sick leave after working for at least 1 year in France. The Labor Code, however, does not mention a specific number of days of sick leave. If the illness requires an absence from work, an employee's doctor must provide a sick leave certificate (avis d'arrêt detravail), which has to be forwarded to the Social Security authorities and the employer within 48 hours of the original medical appointment; otherwise, the employee may risk losing the right to paid medical leave. Social Security funds the allowance for sick leave, but employers may choose to pay additional sick pay.

The general principle is that an employee with at least one year of service with the company is entitled to paid sick leave in the event of sickness and the provision of a sick leave certificate from the medical officer. The period for which an employee is paid during sick leave varies according to the employee's tenure with the organization and the total duration of absence. In case of an accident at work or an occupational disease, sick leave allowance is paid from the first day of absence. In the case of ordinary illness, non-professional, or commuting accidents, it begins from day eight. This allowance is paid as follows:

• During the first 30 days, 90% of the daily remuneration of the employee.
• From day 31, 66% of the daily remuneration of the employee

In France, workers are entitled to 16 weeks of maternity leave and may choose to take 6 weeks of leave before the delivery and 10 weeks after the delivery. 8 weeks of maternity leave are compulsory, of which at least 6 weeks must be taken after childbirth. Maternity leave may be extended on medical grounds arising out of the pregnancy by a maximum of 2 weeks before and 4 weeks after the birth. Maternity leave is increased to 34 weeks for twin births and 46 weeks for triplet or more births. From third and subsequent births, the maternity leave is increased to 26 weeks: 8 before and 18 after childbirth.

During the term of maternity leave, employees are paid a maternity allowance which is equal to the average daily wage (100%) of the three-month period preceding prenatal leave up to a ceiling of EUR 3,864 (Euros) a month after deduction of the employee's share of statutory social security contributions and taxes. The maximum amount of the daily maternity allowance is EUR 100.36 per day. Maternity leave is treated as an actual working period for determining the duration of paid leave and for legal or conventional rights acquired by the employee with respect to her seniority in the company.

Dismissal is prohibited during pregnancy, during maternity leave (whether or not the worker uses the right to take the leave), 10 weeks after a miscarriage of a 14th week or later pregnancy, as well as four weeks after the end of maternity leave.

Paternity and childcare leave is for a total of 25 calendar days or 32 calendar days in the event of multiple births. This leave consists of 2 periods:

• A compulsory first period of 4 consecutive days immediately following the birth leave (3 days), which can be extended to up to a maximum of 30 days in case of immediate hospitalization of the child after birth
• A second period of 21 days, or 28 days in the event of multiple births, which can be split into 2 periods of at least 5 days. It must be taken within 6 months of the birth of the child

Employers must pay 100% of their salary during the first 3 days of birth leave. After that, social security pays paternity allowances. During paternity leave, employees are paid a paternity allowance from the state of 100% of earnings, up to a ceiling of EUR 3,864 a month. The maximum daily allowance paid during paternity and childcare leave is EUR 100.36 per day, from which 21% is deducted for social security contributions.

Fathers cannot be dismissed from employment in the 4 weeks following the birth of their child and are also allowed the right to additional paid leave when the mother is pregnant in order to attend three obligatory exams.

Minimum Wage

The French minimum wage (salaire minimum de croissanceor SMIC) is adjusted every year on January 1. The current hourly minimum wage for adult employees is EUR 11.88 (Euros). This amount equates to EUR 1,801.80 per month based on a legal workweek of 35 hours and an annual minimum wage of EUR 21,621.60. When accounting for the deduction of employee contributions, the net minimum wage is EUR 9.50 per hour, EUR 1,361.97 per month, and EUR 16,343.64 per year.

Overtime, Holiday & Vacation Pay

In France, statutory working hours are 35 hours per calendar week. Employees can, however, work more than the statutory working hours either on a one-off basis (overtime) or as part of a specific working time arrangement. With occasional exceptions, employees must not work more than 48 hours per week, and must not exceed an average of 44 hours per week and 10 hours per day over 12 consecutive weeks. In the absence of collective agreements stipulating otherwise, the overtime hours cannot be greater than 220 hours per year. Overtime pay is regulated by collective agreements. Employees will not pay income tax on overtime pay up to EUR 5,000 (Euros) per year.

Employees in France are eligible for paid holidays if they have at least 3 months of service in the company or establishment. Annual leave pay may be calculated in one of two ways, as long as it is the one most advantageous to the employee:

• Compensation equal to the remuneration which would have been received during the leave if the employee had continued to work, calculated as a function of the earned wages due for the period preceding the leave (the last month for monthly employees) and the actual working hours of the establishment.
• Compensation equal to 10% of the total gross compensation received by the employee during the reference period (period fixed by collective agreement or, failing this, the period from June 1 to May 31).

Notice Period

Under the employment law of France, the termination of an employment agreement by either of the parties must be preceded by a notice period during which the contract remains in effect and binding on both parties. The requirement of prior notice is provided by the law, particularly in cases of resignation, dismissal (except in cases of gross and willful misconduct of the employee), or voluntary and involuntary retirement.

Except in instances of gross misconduct (which may permit an immediate dismissal), the employer must comply with applicable notice periods.

• For a period of continuous employment of less than 6 months, the duration of the notice is determined by the law (where some specific text exists), the collective convention, or, failing that, by the practices practiced in the locality and the profession;
• For a period of continuous employment between 6 months and 2 years, the statutory minimum notice is 1 month.
• For a period of continuous employment of more than 2 years, the statutory minimum notice is 2 months.

Any applicable collective bargaining agreement or employment contract may increase the statutory minimum. During the notice period, an employee continues to work. The employer may waive this obligation but must pay the employee's salary and holiday pay on up to the end of the notice period.

Severance Benefits

Under the labor law of France, severance pay is only awarded if:

• The employer terminates an indefinite-term contract for a reason other than serious or gross negligence
• The employee has worked in the company for at least eight months

Severance pay depends on the employee's length of service and the relevant collective bargaining agreement (CBA) provisions. It is generally calculated based on an employee's average salary (often including bonuses as well as basic salary) during the last year of employment (or the last 3 months if this is more favorable to the employee). Statutory severance pay is calculated as follows:

• A quarter of a month's salary per year of service for up to 10 years
• A third of a month's salary per year of service of more than ten years

Statutory severance pay is not subject to income tax.

Pension

In France, the retirement scheme is based on a statutory scheme and a mandatory complementary scheme. The statutory retirement scheme itself is divided into categories: the general scheme, the plan for agricultural workers, self-employed, civil servants, and a number of "special regimes," ranging from public transport workers to civil aviation flight crews and the Paris Opera employees.

The most common complementary retirement scheme is managed by Agirc-Arrco, which is the result of the 2019 merger of the private sector retirement scheme for executives (Agirc), and the retirement scheme for workers (Arrco).

The Agirc-Arrco scheme uses a 2-salary-bracket contribution basis. A separate contribution rate applies to each salary bracket and is shared between the employer (60%) and the employees (40%). The employer's rate of contribution ranges from 4.72% to 12.95%.

Following the reform enacted in 2023, the general statutory retirement age in France is going to be gradually increased from 62 to 64 (by 2030). In order to qualify for a full pension, individuals must also make an appropriate amount of contributions (contribution trimesters). The basic statutory retirement pension cannot exceed 50% of the Social Security ceiling, which in 2023 is EUR 1,932 (euros) per month. The rate usually ranges between 37.5% and 50%.

Dependents/Survivors Benefits

The statutory social security system of France provides for survivors benefits, including a death grant, as a lump sum paid to the surviving spouse/partner/children, a temporary widowhood allowance, and a survivor's pension. These benefits are awarded depending on the status of the deceased and their surviving spouse/partner and children.

If the surviving spouse/partner is 55 and older, he or she can benefit from a survivor's pension, which is a portion of the old-age pension that the deceased person was receiving or was entitled to.

In order to benefit from the survivor's pension, the person must have been married to the deceased, not simply in a registered partnership. The deceased spouse also must have been contributing to the old-age pension scheme.

The amount of the survivor’s pension is 54% of the deceased spouse’s old-age pension. The maximum monthly amount of the survivor's pension is EUR 1,043.28.

Invalidity Benefits

In France, the conditions for entitlement to disability benefits differ for occupational and non-occupational accidents or diseases.

Eligibility conditions for a disability pension after an accident or a disabling illness which are not work-related are:

• The person must be under the statutory retirement age in France (currently 62, but this will increase to 64 by 2030).
• The person’s working capacity or income capacity has to have been reduced by at least two-thirds.
• The person has to have been registered with the statutory health system for at least 12 months at the time of the acknowledgment of the disability by the statutory health system medical advisor.
• During the 12 months preceding the acknowledgment of the disability, the person must have worked at least 600 hours or must have paid contributions on at least 2,030 times the hourly minimum wage before going on leave.

This disability pension is calculated upon the person’s ten highest average income years.

After the occupational accident or disease, the person will get a daily compensation calculated based on the gross salary of the month preceding the accident or the onset of the disease. The amount of daily compensation amounts to 60% of the person’s daily salary, with a maximum of EUR 386.70 as of January 1, 2024, for the first 28 days following the day the person stopped working. From the 29th day, the daily compensation goes to 80% of the person’s daily salary, with a maximum of EUR 309.37.

This daily compensation will be awarded until the person recovers, is declared to have developed a permanent disability (in which case there is an entitlement to a pension), or dies.