The two main categories of workers are employees and self-employed workers. Employees are workers who have concluded an employment contract with their employer and who are in a subordination relationship. Self-employed are not subordinate to their principal and perform their work independently.

The employment contract can be for a fixed or indefinite term, on a full or part-time basis. Certain conditions must be met in order to conclude a fixed-term or a part-time contract. For example, a part-time employment contract must provide for at least 24 hours of work per week. However, exemptions may be made in specific cases provided by law.

Fixed-term contracts are permitted if they relate to a precise task and if their purpose is not to fill, on a continuing basis, a position that comes within the normal and permanent activity of the employer. Pursuant to the Law of July 12, 1990, fixed-term contracts may be resorted to in very limited situations  (e.g., the replacement of a sick employee, the need to carry out the duties of an employee who is soon to join the company, the need to meet a temporary increase in business, etc.).

Under the general provisions of law, a written contract is required for certain categories of employees, e.g., fixed-term or part-time employees, or for employees seconded by a temporary employment agency. In such cases, the contract must contain very detailed and specific provisions. A written contract is also required when hiring foreign nationals for the purposes of obtaining a residence/work permit (although the employee will sometimes merely complete and sign the standard form of contract prepared by the Immigration Office). Employment contracts executed in France must be drafted in French. Where French is not the employee’s mother tongue, he/she may request a translation of his/her contract in his/her own mother tongue. In the event of a dispute, the contract drafted in the employee’s mother tongue prevails.

In accordance with Article L. 3123-5 of the French Labor Code, a part-time employee benefits from the rights granted to a full-time employee by law or collective agreements. Therefore, in the context of the performance of their employment contract, part-time employees must benefit from rights identical to those of full-time employees. This general principle means that part-time employees may not have fewer or greater rights than full-time employees. These ideas are also reflected in EU legislation. The clause in the Framework Agreement of 6 June 1997 on part-time work, included in Directive 97/91/EC of 15 December 1997, lays down the principle of non-discrimination against part-time employees.

In practice, the transfer of an employee from one company to another is carried out by the conclusion of a tripartite agreement between the employee and each of the two companies concerned. This agreement, known as the "transfer agreement", is of great importance since it is the only way to know the intentions of the parties as to the legal consequences of this measure. The parties have complete freedom in this matter, subject to compliance with the provisions of the applicable collective agreement.

In accordance with article L. 1224-1 of the French Labor Code, when there is a change in the legal situation of the employer, in particular by succession, sale, merger, transformation of the business, or incorporation of the company, all employment contracts in effect on the day of the change continue to exist between the new employer and the company's personnel. Therefore, in case of transfer of the company, the employment contracts of all employees are automatically transferred to the new employer. This transfer of the employment contract implies the transmission to the new employer of all rights and obligations attached to the original employment contract.

Case law has held that the acquisition of a stake in the capital of a company, even if it is a majority shareholding, is not sufficient to characterize the transfer of an economic entity within the meaning of Article L.1224-1 of the French Labor Code. Thus, in principle, there are no specific rights for employees in the event of a change of control of the company. However, an exception exists for journalists. In accordance with Article L. 7112-5 of the French Labor Code, journalists may terminate their employment contract and receive the compensation provided in the event of dismissal in the event of the sale of the newspaper. The journalist has this option even when the transfer is not accompanied by a significant change in the character or orientation of the publication.

Employers can unilaterally change the working conditions of their employees but cannot, in principle, modify the essential elements of the employment contract without their consent. For example, an employer can modify the daily working hours of his employees but cannot modify the working time stipulated in the employment contract. If an employee refuses the modification of his working conditions, his refusal can constitute misconduct and he can be dismissed. In addition, there are specific cases in which the employer can modify the employment contract without the employee's consent. As a matter of fact, in the case of modification of the employment contract due to economic cause, or in the case of the conclusion of a collective performance agreement, the employee's refusal can result in his dismissal for economic reasons.

France is not an employment-at-will jurisdiction.

A fixed-term employment contract ("CDD") cannot be interrupted by anticipation, except for a serious breach of contract or in case of force majeure. It can, however, be interrupted if both parties agree to it. There is no specific procedure.

Under French law, indefinite-term employment contracts ("CDI") may only be terminated by the employer for a “real and serious cause” (cause réelle et sérieuse), i.e., based on true facts, which must be sufficiently serious to justify a dismissal. The cause can result from personal grounds or economic grounds if the company is faced with difficulties.

Serious misconduct and gross negligence are legal bases for terminating an employment contract without allowing the employee to serve his or her notice period and without having to pay him or her an indemnity in lieu of notice and severance pay.

Special regulations apply to layoffs on economic grounds, such as a job preservation plan (plan de sauvegarde de l'emploi or PSE) if over 10 employees are affected in a company with more than 50 employees; redeployment or outplacement support; consultation with the social and economic council; information and reports to the labor administration [Regional Directorate for Economy, Employment, Labor and Solidarity ("DREETS") (Direction Régionale de l'Economie, de l'Emploi, du Travail et des Solidarités - DREETS)]; and payment of severance benefits.

Employee representatives are covered by specific protection. A special procedure (including prior authorization of the labor inspector) must be followed should the employer wish to terminate the employee representatives’ contracts

In case of dismissal without cause, the employee can introduce a claim and obtain his reinstatement or compensation. The reinstatement is not mandatory for the employer who can refuse it. In this case, the employee would be compensated according to a mandatory framework. The judge awards compensation for dismissal without real and serious cause, subject to minimum and maximum amounts determined by year of seniority. These amounts are fixed by a mandatory scale that applies to all employees and all companies, regardless of their size (Article L. 1235-3 of the Labor Code). This scale is not applicable when the judge finds that the dismissal is null and void. In this case, the employee can ask to be reinstated in his or her job. If the employee does not request reinstatement or if reinstatement is impossible, the judge will award him or her an indemnity that cannot be less than 6 months' salary.

Law n. 2016-1691 of December 9, 2016, also known as "Sapin II Law" established a legal definition and status for whistleblowers. It was recently completed by Law n. 2022-401 of March 21, 2022, improving whistleblower protection and implementing EU Directive n. 2019/1937 of October 23, 2019. A whistleblower is now defined as "a natural person who reports or discloses, without direct financial consideration and in good faith, information concerning a crime, an offense, a threat or harm to the general interest, a violation or an attempt to conceal a violation of an international commitment regularly ratified or approved by France, of a unilateral act of an international organization taken on the basis of such a commitment, of the law of the European Union, of law or regulation". In France, whistleblowers have different choices when launching an alert. They can alert their hierarchy, the Rights Defender, justice authorities or a European Union organization. Whistleblowers can also directly alert the general public in some particular circumstances (failure to process an alert within a certain period of time, the existence of critical and immediate danger, etc.).The candidate for a job or the employee who launches an alert is protected against career discrimination (compensation, contract renewal, advancement, working hours, performance evaluation). French law also prohibits retaliation, intimidation, threats or attempts to take disciplinary action, or even personal injury on social networks. There exists a principle of non-liability in tort and criminal law when the whistleblower has reasons to believe that the alert Is necessary and proportionate to the safekeeping of the interests at stake

The right for an employer to monitor/access employee e-mails and files has to be balanced with several principles of French and European laws that guarantee the employees' right to privacy, even at work, and the protection of private correspondence.

Employees in France have a general right to privacy towards their employer. Any restraint to an employee's freedom should be limited by the nature of the duties to be accomplished by the employee and must remain proportionate to the goal of such restraint.

The Labor Code provides that a hidden employee surveillance device (such as cameras, telephone tapping, surveillance of e-mails, files and Internet connections) cannot be set up unless all employees have been made aware of such device beforehand. Therefore, if an employee has been duly warned that the company was implementing recording software for all telephone conversations, e-mails and Internet connections, evidence produced by the employer of the complete telephone invoices in order to prove the employee's abnormal telephone use is admissible in court.

Not only must the employer give prior notice to each individual employee of the implementation of an employee surveillance device, but where there is a social and economic council, the employer must also inform and consult it on the planned surveillance device before it can be set up.

Furthermore, even if an employee surveillance device has been appropriately set up, in compliance with each individual employee's rights as well as those of the social and economic council, that does not mean that the employer is allowed to access, much less use, an employee's private correspondence

Discrimination is prohibited under French law throughout the employment relationship, including with regard to appointment, compensation, professional equality, dismissal and disciplinary sanctions.

Article L.1132-1 of the Labor Code provides that no one shall be excluded from the recruiting process and that no employee shall be punished or dismissed due to his/her origin, gender, morals, sexual preference, age, marital status, pregnancy, genetic characteristics, his/her real or supposed nationality, ethnic or racial origin, political opinions, trade union activities, religious beliefs or physical appearance, name, medical condition or disability unless the latter is duly certified by the occupational doctor. In addition, no employee may be dismissed for striking in accordance with legal provisions.

The misdemeanor of discrimination is a criminal offense punishable by a maximum of three years imprisonment and a maximum fine of EUR 45,000.

All employees have a right to paid vacation. They are entitled to 2.5 days of paid vacation per month of work unless otherwise provided by the applicable collective bargaining agreement. However, paid vacation entitlement may not exceed 30 working days for 12 months of work.

During their sick leave, employees see their employment contracts suspended. In principle, if the illness is work-related, the employee earns paid leave, but if it is not of work-related origin, he does not. On 13 September 2023, the Court of Cassation reversed its ruling, recognizing that paid leave is earned regardless of the origin of the illness.

This decision could have an impact on employers when terminating employment contracts and paying out paid leave earned by the employee but not taken. 

At the time this guide was updated, it was unclear whether this case law would have a lasting effect. A bill on this subject is currently under discussion.

Additional so-called long-service paid leave is also provided under certain collective bargaining agreements, as well as leave for personal or family reasons (wedding, birth, death of a close relative) under the French Labor Code.

An employee who is ill may, subject to certain formalities and conditions, receive daily allowances from his or her primary health insurance fund during sick leave, after a waiting period of three days. The employer is also obliged to pay, under certain conditions, to an employee who is absent due to illness, compensation in addition to that Social Security paid by the Social Security Administration.

Regarding parental leave, there is a distinction in France between maternity leave, paternity leave and adoption leave. Maternity leave is organized around childbirth and includes a prenatal and a postnatal period. The duration of maternity leave depends on the number of children already born and on the number of children expected. The duration of prenatal leave is, in principle, 6 weeks before the estimated date of delivery. The prenatal leave can be extended due to the number of expected children or a medical condition but it can also be postponed by the mother. In this case, this duration is added to the postnatal leave. The postnatal leave has, in principle, a duration of 10 weeks after the date of delivery but it can be extended in case of a medical condition.

After the child's birth, his or her father has a right to a paternity leave of 25 days or 32 days in case of multiple births. The father is also entitled to 3 days of birth leave immediately after the birth of his child. Therefore, the total duration of paternity leave is, in principle, 28 days.

There also exists an adoption leave of a maximum of 16 weeks after the arrival of the child. This adoption leave can be extended in case of multiple adoptions

The French courts consider that each employee, and in particular executive staff ("cadre"), is subject to an implied obligation of confidentiality and of non-competition. Breach of these obligations may justify summary termination, without any compensation or notice being due.

The confidentiality obligation applies not only with respect to third parties but also with respect to other members of staff. Furthermore, the disclosure of manufacturing secrets constitutes a criminal offense under Article L.1227-1 of the Labor Code.

During the term of his/her employment and even in the absence of specific contractual restrictions in this respect, an employee may not carry out any activity or act in any way that would compete with his/her employer.

The basic principle is that any employee is free to use the skills or expertise that he/she may have acquired with his/her previous employer.

It is possible however to provide for a non-competition undertaking after the termination of duties in a contract of employment, provided the restriction meets the following conditions:

• It must be limited in time;
• it must be limited geographically;
• it must be limited in scope; and
• it must be remunerated.

Those limited restrictions depend on the duties performed by the employee and are controlled by judges. The non-competition clause must not excessively interfere with the employee's freedom to practice a profession. It must specifically target such job(s) or profession(s) in such industry(ies) or trade(s). A clause whose professional scope is too broad to allow an employee to find a job in line with his professional experience may be considered unlawful.

These conditions are cumulative and a non-compete clause not providing for all four conditions is deemed null and void.

The introduction of a restrictive covenant constitutes a modification of the employment agreement. Therefore, the employee must agree with this modification. In the case of a refusal, the employer cannot terminate the employee's contract because the refusal of a modification of the employment contract does not, in principle constitute misconduct.

Financial compensation serves as a consideration for a restrictive covenant. The judges are very strict on this point: if no financial compensation is provided, the clause is illegal. The financial compensation can be provided within the employment contract or the collective bargaining agreement.

The compensation cannot be a minor one because it can constitute a lack of consideration. Also, the judge cannot determine on his own the compensation amount. If there is no compensation or if the compensation is not sufficient, the restrictive covenant is null and void

In general, employees may retire as of age sixty-two for employees born from 1955 onward. The pensionable age, which used to be 60, has gradually increased since July 1, 2011. However, certain employees may retire before age sixty-two subject to satisfying specific conditions.

An employee who has not reached 70 years of age cannot be pensioned off without his or her consent.

The basic state retirement pension scheme is financed by social security contributions. It is supplemented by an additional retirement pension scheme, managed by employee-representative trade union organizations and employer-representative trade union organizations.

The additional compulsory retirement pension scheme is based on the principle of contribution, rather than that capitalization, whereby annual contributions collected from employees and employers are immediately redistributed to current pensioners, rather than being invested.

Both the employer and the employee contribute to an additional state retirement pension scheme. There again, the employer is responsible for paying both shares; the employees’ share is deducted directly from the compensation on a pay-as-you-earn basis.

One institution coordinates This additional state retirement pension scheme: AGIRC-ARRCO (Association générale des institutions de retraite des cadres - Association pour le régime de retraite complémentaire des salariés). Before 2019, the AGIRC and the ARRCO were two separate institutions managing the additional state retirement pension scheme for executives and managers, for the first one, and for non-executive employees for the second one.

Different benefits are mandatory in France:

• coverage of health care costs by the health insurance scheme in case of illness or maternity;
• daily social security allowances in case of illness, accident or parental leave;
• disability benefits;
• capital in case of the death of the employee.

An employee who has reached the age of automatic full retirement may be retired by his or her employer. However, the employee's agreement is required before the age of 70. Therefore, the employer and the employees cannot agree to an age lower than that set by law.

It is possible to combine the payment of a retirement pension with the exercise of an activity. Depending on certain conditions, this combination can be total. Otherwise, the amount of the retirement pension may be reduced by all or part of the amount of the remuneration received by the employee.

The COVID-19 vaccine was mandatory for certain employees working with vulnerable persons (employees working in healthcare facilities for example) based on the law. The employer did not have and still does not have the opportunity to make the COVID-19 vaccine mandatory for its employees.

For those who had to be vaccinated, the employee's refusal led to the suspension of his or her employment contract

Employees must return to work in the office when the employer requires so and if the employment contract does not provide for specific provisions on telework that are more favorable.

If an employee refuses to return to the office, his refusal can constitute disobedience and even voluntary abandonment of position. In this case, the employer could dismiss the employee due to his misconduct