Kris Simpson on France taking steps to reduce abuse of fixed-term contracts

The French authorities have increased their scrutiny of the use of fixed-term contracts (CDD) in sectors that rely heavily on temporary staff. This increased focus on the types of contracts staff are engaged under helps ensure that employees receive the correct employment rights as provided by their contract or engagement.

France has two main types of employment contracts: fixed-term (CDD) and permanent (CDI). While both contracts are similar in that they employ individuals, there are certain differences that reduce some liabilities for the employer if workers are engaged under a CDD agreement.

CDD contracts have always been restricted to limited situations where fixed-term agreements make sense under the French Labour Code (L1242-2):

• Replacement of an absent employee
• Seasonal work
• Temporary increase in activity (peak demand, unexpected load)
• Project-based roles with a defined end date

Using fixed-term workers for roles that are ongoing or structurally permanent creates a high risk of requalification.

Essential Contract Requirements

Every CDD must include specific mandatory clauses:

• Justification for temporary employment
• Precise start and end dates
• Job description and workplace
• Salary, working hours, benefits
• Reference to applicable collective bargaining agreement

The contract must also be written and signed, and provided to the worker no later than two days after the start date.

A missing or vague justification can invalidate the contract and automatically reclassify it as a permanent contract (CDI), triggering significant financial and operational consequences.

Renewal, Duration & Monitoring

Important operational rules to ensure compliance when using CDD contracts:

• CDDs can only be renewed twice
• Maximum total duration usually 18 months (can vary by legal basis)
• Break periods (“carence”) may apply between contracts for the same role

Overuse of CDD renewals or placements increases the possibility of misclassification.
If a misclassification verdict is upheld, the consequences of non-compliance can create a number of challenges. If the contract is deemed not to comply with CDD rules, the worker will be granted long-term employment rights, new notice and termination procedures, benefits, sick pay, leave, and other long-term employment benefits.

CDD rules in France haven’t fundamentally changed — but enforcement has. Recruiters and EORs operating with temporary labour must demonstrate:

• A clear and lawful reason for every CDD
• Strong documentation and contract discipline
• Up-to-date payroll compliance

Working with Sapphire for contract placements in France will help protect recruiters, clients, and contractors in one of the more complex employment rights environments in Europe.