Employment laws in France

When hiring in France, labor laws need to be one of the key considerations for international employers. The scope and complexity of these laws, from contracts and working hours to termination procedures and employee benefits, can be overwhelming. Missteps can lead to fines, legal claims, and damage to your company’s reputation. 

Hiring and managing talent in France with assistance from Payoneer Workforce Management offers a streamlined approach to handling employment contracts, payroll, benefits, and more with support that helps you stay aligned with employment laws and practices in France.

Key employment laws in France

In France, employment laws are governed by the Code du Travail, as well as EU law, case law, and collective bargaining agreements. The French labor code covers nearly all aspects of work, including employment contracts, working hours, leave, benefits, discrimination, termination, and workplace representation.

All employees working under subordination (i.e., employer control) are protected by these labor laws, whether they are under permanent or temporary contracts. 

Contract employment laws in France

When hiring a worker in France, employers must classify their employee correctly. They should also have a robust employment agreement in place to protect both the employer and employee from disputes. 

Contract types

Common contract types in France include:

• CDI – Contrat à Durée Indéterminée: Permanent contract
• CDD – Contrat à Durée Déterminée: Fixed-term contract
• Contrat temporaire: Temporary contract

Misclassifying employees under the wrong type of contract can lead to fines, mandated payments of back taxes and retroactive salary and benefits, and criminal penalties.

Essential contract elements

According to employment laws and practices in France​, compliant contracts must state:

• Identity and address of both parties
• Contract type and employment start date
• Job title and description
• Place of work
• Qualifications
• Compensation in euros, benefits, and bonus eligibility
• Working hours and leave entitlements
• Termination terms, including notice period 

Statutory employment rights in France

Employment laws in France provide minimum protections for employees regarding their standard and maximum working hours, minimum wage, and other benefits.

Working hours

The standard working hours as set by France’s labor laws are 35 hours per week. 

Any hours worked beyond these limits would be considered overtime (unless the employee holds an executive position). 

Employees receive a total of 30 days or 5 weeks of vacation days, as well as 11 public holidays annually. 

Minimum wage and overtime

Minimum wage in France is currently EUR 1,766.92 gross per month.

Collective bargaining agreements usually determine overtime pay. In their absence, employment laws in France state that an employee should be compensated at regular wages plus an additional:

• 25% for 36 to 43 hours overtime
• 50% after 43 hours overtime 

Collective bargaining agreements usually determine overtime pay.

Mandatory benefits

To adhere to France’s labor laws​, employers may also provide the following employee benefits:

• Statutory social security contributions: Cover health, pension, unemployment, and long-term care
• Sick leave: Employees receive a daily subsistence allowance from their sickness insurance scheme
• Maternity leave: Pregnant employees can take 16 weeks / 112 days of paid leave
• Paternity leave: Employees get 25 paid days, with 4 days post childbirth
• 13th-month bonus: May be determined by a collective bargaining agreement
• Leave and public holidays: Includes 30 vacation days and 11 public holidays

Termination employment laws in France 

France’s labor laws have strong protections for employees against termination. 

Grounds for permanent employee dismissal can be:

• Resignation
• Mutual agreement
• Termination during probation
• Termination due to misconduct, performance issues, or absence without leave

Where there is a collective bargaining agreement, it should determine the termination notice period. Otherwise, notice periods should be 1 month if employed between 6 and 24 months, or 2 months if employed for over 2 years. 

Severance pay is mandatory for most dismissals and is calculated based on tenure and salary, while notice periods are shorter during probation compared to standard termination.

Navigate France’s labor laws with trusted support

For employers in France, labor laws are strict and comprehensive. Following them is essential, as violations can lead to fines, unexpected payouts, and exposure to litigation. 

By partnering with Payoneer Workforce Management, you can get support with:

• Hiring and employment contracts
• Time-tracking and time-off management
• Benefits administration
• Onboarding & offboarding

Book a demo today.

FAQs

1) What are the employment laws in France?

France’s employment laws fall under the Code du Travail, which typically covers employment contracts, working conditions, terminations, and protections. They mandate working hour limits, paid leave, and social benefits.

2) What are the labor rights in France?

Under France’s employment laws, employees have the right to:

• A minimum wage of EUR 1,766.92 per month
• A 35-hour standard work week and overtime compensation (excluding executives)
• 5 weeks paid vacation, and 11 public holidays
• Paid sick, maternity, and parental leave
• Social security and pension contributions

3) What is the termination law in France?

According to France’s labor laws​, dismissal requires real and serious grounds, like misconduct, performance issues, or absence without leave. Employees are usually due a notice period of 1 to 2 months or more, depending on collective bargaining agreements and length of service.