Hiring Employees in France: Employment Law Essentials for Foreign Companies
To hire legally in France, identify the applicable collective bargaining agreement, use a compliant written contract (CDI or CDD), register the employee before the first day (DPAE), run French payroll with social contributions, and respect the 35-hour framework, paid leave and strict dismissal rules.
French employment law protects employees heavily, and foreign employers who apply home-country habits get caught out fast. This guide covers the essentials — contracts, working time, pay, and how termination really works — so you can build a compliant French team.
Steps to Hire Your First Employee in France
| Step | What to Do | Why It Matters |
| 1. Find the CBA | Identify the applicable convention collective | It overrides many default rules |
| 2. Choose the contract | CDI (permanent) or CDD (fixed-term) | CDD is only allowed in defined cases |
| 3. Register the hire | File the DPAE before day one | Late filing is penalised |
| 4. Set up payroll | Employer + employee social contributions | Contributions are high and mandatory |
| 5. Respect working time | 35-hour week baseline, overtime rules | Drives cost and compliance |
| 6. Document everything | Payslips, leave, working-time records | Key evidence if a dispute arises |
What Type of Employment Contract Should You Use?
The open-ended contract (CDI) is the default in France. Fixed-term contracts are the exception, not a convenience.
- CDI: permanent contract, the standard form; no set end date.
- CDD: fixed-term, allowed only for specific reasons (replacement, temporary surge, seasonal work) with strict duration and renewal limits.
- Trial period: must be stated in the contract; length is capped by category and the CBA.
How Does Working Time and Overtime Work?
The legal working week is 35 hours. Hours beyond that are overtime, paid at a premium or offset by rest, within daily and weekly caps. Managers (cadres) can be on a day-count (forfait-jours) arrangement, but only if the CBA allows it and the agreement is valid.
What Are the Real Costs of Employing in France?
Budget well beyond gross salary. Employer social contributions add a significant percentage on top, funding health, pensions, unemployment and more. Employees also accrue at least five weeks of paid leave per year, plus public holidays and CBA-specific benefits.
How Hard Is It to Dismiss an Employee?
Dismissal requires a real and serious cause (cause réelle et sérieuse) and a strict procedure: pre-dismissal meeting, notice, and a properly reasoned letter. Getting it wrong exposes the employer to damages under the statutory scale. Mutual termination (rupture conventionnelle) is a common, safer route to part ways by agreement.
CDI vs CDD: How Do They Compare?
| Feature | CDI (Permanent) | CDD (Fixed-Term) |
| When allowed | Always | Only defined legal cases |
| End date | None | Fixed, with renewal limits |
| End-of-contract bonus | No | Usually 10% precarity premium |
| Flexibility | Lower to exit | Ends automatically at term |
| Risk if misused | Low | Requalification into a CDI |
Final Verdict
Our employment team helps foreign companies hire, structure contracts, manage restructurings and handle dismissals in France without stepping on the many statutory traps. De Gaulle Fleurance drafts CBA-compliant contracts, advises on working-time schemes and defends employers before the labour courts.
