There are two types of employment contracts in a french EOR (Employer of Record). The permanent contract and the fixed-term contract with executive status. In this article, we present these two types of contract and their characteristics. As Prium Portage is an EOR (employer of record) : ur company will help you make the right decision based on your situation.
The permanent contract
A permanent contract (CDI) is a type of employment contract in France that has no predefined end date. This contract offers a degree of security for both employer and employee. A CDI is often seen as a guarantee of stability and security for employees, enabling them to plan their professional and personal future.
Duration of the employment contract:
As its name suggests, a permanent contract is open-ended. The employee is committed for as long as one of the parties (employer or employee) does not decide to terminate the contract, in compliance with legal or contractual conditions.
Trial period:
An open-ended executive employment contract has a trial period of 4 months, renewable once for a total of 8 months. During this period, either the employee or the employer may terminate the contract without justification, subject to a period of notice. In portage salarial (french umbrella company also known as « EOR – employer of record« ), the company renews the trial period so that it can terminate the contract at the employee’s request, since termination after the trial period can be more complex.
How do you terminate a permanent employment contract on your own initiative?
Are you an employee wishing to terminate your employment contract?
You have three options: terminate the trial period (if still in progress), resign or negotiate a contractual termination.
Ending the trial period: you’re in a trial period and want to end the contract. Simply send a letter to your employer, without giving any reason. You must give 24 to 48 hours’ notice. If you terminate the trial period, you will not be entitled to unemployment benefit.
Resignation: if you wish to resign (after the trial period), you must give 3 months’ notice. This period can be negotiated with your employer. If you resign, you won’t receive any severance pay, and you can’t claim unemployment benefits.
Rupture conventionnelle: in France, it is possible to terminate an employment contract by mutual agreement with your employer. This is an interesting option for you if you are planning to stay in France and have no subsequent contract. After 6 months of contract as a full time employee, you are entitled to unemployment benefits. Your employer will also pay you a termination indemnity. In portage salarial (french umbrella company), the amount is provisioned in advance, after validation of the trial period.
How do you terminate a permanent employment contract at your employer’s initiative?
Asking your employer to terminate your employment contract is an interesting option if you wish to receive unemployment benefits.
The employer can terminate the trial period, subject to a notice period ranging from 24 hours to 1 month (depending on how long you have been with the company).
The contract can also be terminated by means of a “rupture conventionnelle”, in agreement with you.
What are the end-of-contract documents?
At the end of the contract, the employer must give the employee the following documents :
- a certificate of employment
- a final pay statement
- A termination document (depending on whether the employee has resigned or been dismissed).
The fixed-term contract
A fixed-term contract (CDD) is a type of employment contract in France that binds an employer and an employee for a defined period.
The CDD must specify a start date and an end date. In portage salarial, we also specify the client you are working for. The duration of a fixed-term contract may vary, but is limited to 18 months, with the possibility of 2 renewals for a maximum of 54 months.
At the end of the fixed-term contract, the employee receives an end-of-contract indemnity equivalent to 10% of the gross salary received during the contract period.
With our portage salarial service, we set aside this sum and pay it to you at the end of the contract.
A fixed-term contract generally runs until the end of the contract. However, it is possible to terminate a fixed-term contract before the end of its term, but this is governed by law. An agreement between the parties is required.
Finally, it is possible to convert a fixed-term contract into a permanent contract.
You have an assignment and would like to sign an employment contract in France?
Prium Portage (French employer of record) can help you with all the formalities, from obtaining your work permit to contracting with your client(s) and signing the employment contract.
In the meantime you can also try our salary simulation tool here.
Meet our International business developer
 | Ophélia ABBÉ International business developer E-mail: [email protected] 📞 To be contacted by phone, please specify your phone number. |
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