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Employment contract in France and its evolutions

An employment contract is a legal document that sets out and organises the employment relationship between an employer and an employee. It is signed by both parties and can be...
Posted in Legal
août 10, 2024
Employment contract in France and its evolutions

An employment contract is a legal document that sets out and organises the employment relationship between an employer and an employee. It is signed by both parties and can be either oral or written, although certain types of contract, such as fixed-term contracts, part-time contracts and special contracts, must be drawn up in writing.

For an employment contract to be valid, three essential elements must be present:

An activity: The employee undertakes to make his activity available to the employer. This implies the performance of tasks and responsibilities specific to the job.

A subordinate relationship: The employee is under the authority and direction of the employer. They must comply with the employer’s instructions and directives when carrying out their work.

Remuneration: Employees receive remuneration for their work.

The employment contract may contain various clauses, such as the duration of the work, working hours, place of performance, remuneration, holidays, probationary period, etc. These clauses may vary depending on the type of contract and the applicable legal provisions.

It is important to comply with the compulsory terms laid down by law and, where applicable, by the relevant collective agreement. Certain terms are prohibited, such as discriminatory clauses, celibacy clauses or pay below the legal minimum wage.

The employment contract plays a crucial role in the employer-employee relationship by establishing the rights and obligations of each party. It provides a legal and regulatory framework for the employment relationship, protecting the interests of both parties and enabling any disputes to be resolved.

Short-term contracts and how they have changed over time:

Short contracts in France: Although open-ended contracts (CDI) are the norm for employment in France, the use of short contracts (CDD, temporary work contracts, etc.) has intensified in recent years. In 2020, the rate of employment on fixed-term contracts is estimated at 8.5% by INSEE.

Reasons for using short contracts: Some people choose to work on short contracts for periods of transition, study or retraining, or for reasons of flexibility, particularly for specific periods of work or for higher pay for an equivalent position on a permanent contract.

Precariousness and difficulties: The majority of short contracts are voluntary and synonymous with precariousness for employees. They can make it difficult to reconcile work and personal life because of uncertain renewals, fluctuating working hours and uncertain contract durations.

Impact of the health crisis: The health crisis, probably referring to the COVID-19 pandemic, has had a major impact on workers on short contracts, particularly temporary workers and employees on fixed-term contracts.

Employment statistics in France: INSEE and DARES (the body responsible for statistics, studies and research on employment and labour) regularly provide statistical data on the labour market, particularly on short contracts, temporary work, the underemployment rate, etc.

Trends in short-term contracts: Over the years, the number of people hired on fixed-term contracts has risen significantly, due to the increase in the number of successive fixed-term contracts and the average reduction in their duration.

Use of short contracts by age group and gender: Statistics show that young people and women are more likely to work on short contracts, and low-skilled employees are also affected.

In summary, short contracts have become more common in France, with high levels of fixed-term and temporary employment. Although some people choose these contracts for specific reasons, the majority of employees on short contracts endure them and face precarious working conditions. The health crisis has also had a significant impact on workers on short contracts.

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