Recruiting an employee in France is an excellent opportunity to grow your business in the French market. However, before signing an employment contract, it is essential to choose the type of contract best suited to your needs and to comply with French regulations.
For foreign companies recruiting without an established entity in France, this choice is all the more important: the employment contract must comply with the French Labour Code, the applicable collective bargaining agreements, and French social security obligations.
Discover the main types of employment contracts in France and the criteria for choosing the one that best fits your recruitment plans.
The CDI: France's Standard Employment Contract
The Contrat à Durée Indéterminée (CDI), or open-ended contract, is the standard employment contract in France. It has no end date and offers significant stability to the employee. It can be concluded on a full-time or part-time basis.
When Should You Choose a CDI?
- To recruit an employee in France for the long term;
- To develop a commercial presence in the French market;
- To retain talent over the long term.
What Are the Benefits of a CDI for the Company?
- It makes the position more attractive;
- It reassures candidates (job security);
- It helps build a stable team.
The CDD: A Solution for Temporary Needs
The Contrat à Durée Déterminée (CDD), or fixed-term contract, may only be used in specific situations provided for by law. The contract must state the reason for its use.
When Can a CDD Be Used?
The use of a CDD is authorized in particular to:
- Replace an absent employee;
- Address a temporary increase in workload;
- Carry out a one-off assignment;
- Meet a seasonal need.
Be Aware of the Risks
If a CDD is used without complying with the legal conditions, it may be reclassified as a CDI by French courts.
It is therefore essential to verify that the use of a CDD is legally justified.
The Part-Time Employment Contract
A foreign company may also hire an employee on a part-time basis (CDI or CDD).
This type of contract is suitable when business activity in France is still limited or when a position does not require full-time presence.
The contract must in particular specify:
- The weekly or monthly working hours;
- The distribution of working hours;
- Any additional hours.
When Should You Use a Part-Time Employment Contract?
A part-time employment contract is particularly suitable when the company’s needs do not justify full-time employment. For example:
- To test the French market before expanding activity;
- To recruit a first employee, a business development manager, or a consultant whose workload is still limited;
- For support functions, one-off assignments, or positions where activity is concentrated on certain days of the week.
Using part-time employment therefore helps control recruitment costs while benefiting from the skills needed to develop the business in France.
Specific Types of Contracts
Depending on your activity, other types of contracts may be considered:
- The apprenticeship contract (contrat d’apprentissage);
- The professionalization contract (contrat de professionnalisation);
- Certain contracts specific to particular sectors of activity.
These contracts are subject to specific rules and may give entitlement to certain grants or exemptions.
Hiring in France Without Setting Up a Subsidiary: It Is Possible
Many international companies wish to recruit an employee, an engineer, a marketing manager, or a consultant in France without having to immediately set up a subsidiary.
The status of a foreign company without an establishment in France makes it possible precisely to employ French staff while complying with French social and administrative obligations, without creating a legal entity in France.
Certain rules must nevertheless always be complied with:
- draw up a contract that complies with French law;
- register the business with the competent authorities;
- declare the hiring of the employee;
- issue payslips that comply with French regulations;
- pay French social security contributions;
- comply with the Labour Code and the applicable collective bargaining agreement.
This solution is often a first step before a more significant establishment in the country.
The employment contract forms the basis of any working relationship in France. For a foreign company without an establishment, it is essential to choose the appropriate contract while complying with the many requirements of French law.
Being supported by a specialist helps secure every step: choice of contract, registration, social security filings, payroll, and regulatory compliance.
Would you like to recruit your first employee in France without setting up a subsidiary? Our team supports you throughout every step, so you can hire quickly, simply, and in full compliance. Feel free to contact us to tell us about your project.