France

Contract Types

Fixed duration (maximum 18 months in total), or indefinite duration.

For fixed-term contracts, there must be a specific reason e.g, a temporary increase in activity, or replacement of an absent employee. Contracts are governed by law and the Collective Bargaining Agreement (CBA) in place.

Probation

The legal maximum duration for probation for a blue collar permanent contract is 2 months, for technicians and supervisors it is 3 months and 4 months for management, though this can vary depending on the CBA. Probation can only be renewed if permitted by the CBA.

Working Hours

35 hours per week is standard. However, other timings may be permitted by the CBA or a company agreement.

Overtime

Maximum 220 hours per year, but this may be lower for certain CBAs. Overtime can be no more than 44 hours per week over 12 consecutive weeks or a total of 10 hours per day and 48 hours per week. Overtime payment is agreed in the contract but is usually paid at 125% for the first 8 hours per week, then 150% after this. Time off may be given in lieu.

Other Financial

Employers must contribute to a private pension fund and provide health insurance to complement state provision for employees, known as the Mutelle. A 13th month salary is not mandatory but common under CBAs and is usually paid at the end of the year.

Other

Monthly payroll. No date is imposed on the employer unless provided by the company agreement or the CBA. The employer may pay the employee at the end of the month or during the following month, so long as it is the same time each month.

Tax rates valid for: 2024

Corporation Tax: 25%

Consumption Tax: 20%

Employers’ Social Security:

45% Average contribution

Payroll Tax: 4.25 – 13.6%

Employees’ Contributions: 20-23%

Income Tax Rates

• Up To 10,778: 0%
• 10,779-27,478: 11%
• 27,478-78,570: 30%
• 78,570-168,994: 41%
• Over 168,995: 45%

Tax thresholds are increased for married couples and those with children, the rates above are for single people. There is also a surcharge of 3% on income over 250,000 for single people and 500,000 for married couples.

Notice

Notice periods are as per the CBA and depend on the employee’s length of service, their status and the type of termination. Periods range from 24 hours to 3 months. Usually, 1 month for service of 6 months to 2 years. 2 months for 2 years’ service and 3 months for executives.

Redundancy and Dismissal

Employees who are dismissed or made redundant are entitled to payment in lieu of notice.

Compensation must always be paid for notice period and holidays accrued and not taken.

Termination of employees in France is more bureaucratic than in other countries and strict procedures must be followed to avoid being taken to court and the termination being overturned. Grounds must be established for the dismissal and the conduct which has caused the termination (if the dismissal is “for personal reasons”) must have taken place within the previous 2 months. For redundancies, employers must attempt to redeploy or retrain those at risk.

Fixed term and permanent employees have the same rights. When the employment ends the employer has to provide a certificate stating the position held, which will enable the employee to claim benefits, plus a statement of all the employee is owed.

Severance Pay

The employee is entitled to the most beneficial of (labour law and collective bargaining agreement calculation):

Monthly average of last 12 months’ employment.

Monthly average of all months preceding dismissal unless there has been sick leave.

The most beneficial of these two figures is used as the salary to calculate, 1/4 of the month’s salary per year of seniority (up to 10 years), 1/3 of a month’s salary per year of seniority (over 10 years). Collective bargaining agreements can provide for more favourable amounts.

For cases of gross misconduct, employment can be ended on delivery of the dismissal notice and no compensation is required.

During Probation

Termination during the probationary period attracts payment of the notice period only. The required notice period is 24 hours for 8 days’ service or less, 48 hours for service up to 1 month, 2 weeks after 2 months and 1 month after 3 months.

Paid Public Holidays: 11

January 1st – 1st January

Day given in lieu: No

Easter Monday – 1st April

Day given in lieu: N/A              

Labour Day – 1st May

Day given in lieu:  No               

Victory in Europe Day – 8th May

Day given in lieu:  No               

Ascension Day (Thursday 40 days after Easter) – 9th May

Day given in lieu:  N/A             

Whit Monday – 20th May

Day given in lieu:  N/A             

Bastille Day – 14th July

Day given in lieu:  No               

Assumption of Mary – 15th August

Day given in lieu:  No               

All Saints’ Day – 1st November

Day given in lieu:  No               

Armistice Day – 11th November

Day given in lieu: No

Christmas Day – 25th December

Day given in lieu:  No               

Alsace / Moselle observe 2 extra days – Good Friday and St Stephens Day.

Public holidays falling on Sunday not included.

All leave entitlement based on 5 day working week. Number of days quoted are working days unless stated otherwise.

Paid legal entitlement (working days)

Standard annual leave entitlement is 25 days. Employees with a cadre designation, and some others, are also entitled to additional days, known as reduction of working time (RTT) which is extra leave of up to 2 extra days per month to compensate for working extra hours. Employees acquire paid leave as soon as they are hired on a pro-rata basis. Many employers give 30 days annual leave plus RTT.

Carry over permitted

Employers must ensure that staff take a minimum of 20 days during the holiday year. Carry over of 5 days is allowed for 1 year. RTT has to be taken in the year it is accrued.

Timings

The holiday year runs from 1 June to 31 May, with the CBA governing entitlement during the first year of employment. A minimum of 2 weeks’ leave has to be taken consecutively and should be taken between May and October. Some business activities may have different holiday years.

Payment in lieu allowed

Only on termination.

Sick

Sick pay is paid by social security from the 4th day and continues for up to 3 years, subject to conditions in terms of Social Security contributions made. Employers top up the social security sick pay to prescribed amounts for set down durations, though the CBA may provide for more generous arrangements.

Maternity

Maternity leave depends on a number of factors; whether it is a single birth, how many children the mother already has and whether there are any medical complications. Maternity leave is for a minimum of 16 weeks and a maximum of 52 weeks (for the birth of triplets with medical complications). A capped allowance is paid by Social Security (so long as the mother meets the qualifying criteria) but many employers will top this up. Employees have the right to return to work and cannot be dismissed during maternity leave or for 10 weeks after the end of maternity leave.

Paternity

Paternity leave is composed of several parts. Compulsory birth leave for 3 working days after the birth; mandatory paternity leave for 4 calendar days following this, and 21 calendar days’ leave which can be taken in two blocks. Multiple births attract more leave. The leave can be taken in the 4 months following the birth.

Parental

In order to be eligible, employees must have worked for 1 year before the birth or adoption. Employees can take up to one year’s leave, without pay (during which time the contract is suspended) or move to part-time hours if this is feasible. This is available for 3 years and cannot be refused unreasonably by the employer.

Adoption

If the child is being adopted from abroad then the employee is entitled to 6 weeks’ unpaid leave.  

Additional leave depends on the number of children the employee already has and whether a single child or twins (or more) are being adopted. The minimum additional leave is 10 weeks, rising to 22 weeks for the adoption of twins or more for employees with 3 or more children. This is increased by 11 days (or 18 for multiple adoptions) if the parents share the leave.

Carer Leave

Should an employee’s child become sick then the employee has a right to leave. Typically, this is for 3-5 days per year unpaid unless agreed otherwise in the CBA. Employees are also entitled to leave of a maximum of 3 months to care for a relative (who must be a French resident) paid by Social Security. This leave can be extended but should not exceed 1 year over the employee’s working life.

Bereavement

14 working days for the death of a child or full dependent under 25 or a child who was themselves a parent. 12 days for a child who does not meet these requirements. 3 paid days for the death of a spouse or partner, or a close relative. Bereavement leave is paid by the employer. The CBA may grant more leave.

Other

5 paid days should a child become disabled. The CBA may grant more leave. Family Solidarity leave of up to 3 months funded by Social Security to be with a loved one at the end of their life.

Medical

In addition to the mandatory contributions to medical cover in the public system through social security, higher levels of cover are obtained through the compulsory Mutuelle scheme, funded by the employer.

Life

Employers must have “Prevoyance” insurance in place to cover life and disability and is mandatory for executives and often for other levels of staff.