OUTLINE
Notice periods in France
Terminating an employee in France
Post-termination restraints in France
Waivers in France
Transfer of undertakings in France
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End of employment in France
Every employment relationship comes to an end for one reason or another — and there are specific rules that apply in each case. For example, in France, employees can choose to resign from their roles, employers can dismiss them, or the two parties can mutually agree to terminate their employment contract. Employers in France should understand the rules that apply to each situation to protect both their business and their employees.
In this section, we’ll discuss everything there is to know about the end of the employment relationship in France. We’ll talk about the different ways employers can dismiss employees and the notice periods that both employers and employees need to respect. We’ll also cover the post-termination restraints that employers in France can impose on their former employees, as well as the rules about what happens to employees after a transfer of undertaking.
Notice periods in France
Both employers and employees in France need to respect a certain notice period to terminate the employment relationship. Notice periods vary depending on the type of employment contract and the employee’s length of service.
Notice periods in France for employers and employees
The notice period to end a permanent employment contract in France depends on how long the employee has been engaged. It’s the same for both the employer and the employee. During the first six months of a contract, the notice period is set by either the relevant collective agreement or the employment contract if no collective agreement applies.
When the employee has been employed for between six months and two years, the notice period is one month. After two years of employment, the notice period is two months. Three months’ notice is required for executives.
Giving notice in France
There is no formal procedure that employees in France have to follow to give notice. They can inform their employer orally or in writing of their intention to leave their permission. However, giving written notice is advised for the avoidance of doubt. Some collective agreements require employees to give notice in writing. If an employee wants to retract their resignation, they can only do so if the employer agrees.
Notice periods in France for fixed-term contracts
The above information applies to permanent employment contracts (contrats à durée indéterminée or CDI). When an employee is engaged on a fixed-term contract (contrat à durée déterminée or CDD), it generally can’t be terminated by either party before the term. Similarly, employees hired by temporary work agencies can’t quit assignments with user companies except in certain circumstances, such as if they are offered a CDI contract. For this reason, there is no formal notice period for these types of contracts.
Severance pay in France
Employers in France are generally required to pay severance when they terminate an employee’s contract. However, the amount due can vary substantially depending on various factors, including the terms of the employment contract, the collective bargaining agreement that applies, and the reason for termination. Severance pay is not due in cases of gross misconduct or negligence.
Probationary periods in France
Probationary periods are not mandatory in France, but they are common. The French Labour Code sets maximum terms for probationary periods depending on the type of job in question. They are:
- Two months for blue-collar workers.
- Three months for technicians and supervisors.
- Four months for management positions.
Probationary periods can be renewed once, as long as certain conditions are met.
Terminating an employee in France
There are several different ways of terminating an employee in France. Each of them is subject to specific conditions and restrictions to protect employees from unfair dismissal.
Termination by mutual agreement in France
In France, an employer and an employee can mutually agree to terminate their employment agreement. This type of termination is known as a rupture conventionelle. It can’t be unilaterally imposed by either party. For termination to be agreed upon, there must be a meeting between the parties, during which they sign the rupture conventionelle document. Both parties then have up to 15 days to go back on the agreement if they want to. If they don’t, the rupture conventionelle must be sent to a special government body for approval.
There is no set notice period for termination by mutual agreement. Instead, the two parties have to agree on a contract end date, taking into account the 15-day cooling-off period and the time needed to have the termination approved. The employer must then pay the employee termination pay based on their normal wages and how long they have been engaged. The French government has created an online calculator to help employers work out how much they have to pay.
Dismissal for disciplinary reasons in France
Employers in France can also terminate employees for personal reasons. They must have a serious and real justification for termination, which must be precise, concrete, verifiable, based on real facts, and sufficiently serious to justify termination. For example, termination on personal grounds would generally be justified in the following situations:
- Faults on the part of the employee.
- Professional insufficiency.
- Illness (when the employee’s absence interferes with the running of the business).
- Incapacity to work declared by a work doctor.
- Harassment of other employees.
There are also certain circumstances that are never justifiable reasons for terminating an employee in France. For example, an employee cannot have their contract terminated for discriminatory reasons or for whistleblowing.
Termination for economic reasons in France
Termination of employment for economic reasons is when an employee is terminated through no fault of their own. Reasons for economic termination may include:
- Financial difficulties: The company is experiencing financial hardship and can no longer continue employing the employee or no longer needs them.
- Technological advancements: The introduction of a new technology makes an employee’s role obsolete or unnecessary.
- Internal reorganisation: The business needs to reorganise in order to remain competitive, eliminating the need for the employee’s role.
- Cessation of company activity: The business is closing down all or part of its operations.
Automatic retirement in France
Employers in France can require an employee to retire when they reach the age of 70. If an employee is aged between 67 and 69, the employer can suggest that the employee retire but can’t enforce it.
Other requirements for terminating an employee in France
At the end of employment, the employer must provide the employee with:
- An employment certificate stating the dates the employee held the position.
- A document for the unemployment service (France Travail).
- A document detailing the employer’s final payment to the employee.
Post-termination restraints in France
Post-termination restraints are restrictions that employers can impose on employees after their time with the company is over. They’re designed to limit the employee’s actions in order to protect the interests of a business. However, they can’t unduly restrict an employee’s ability to make a living.
The main types of post-termination restraints that are possible in France are:
- Non-compete agreements: These prevent employees from creating or working for competing organisations, usually within a certain geographical region during a set time frame.
- Customer non-solicit agreements: These prevent employees from soliciting or poaching customers from their former employer.
- Employee non-solicit agreements: Similarly, these prevent employees from soliciting or poaching employees from their former employer.
Limitations on post-termination restraints in France
Non-compete clauses in France must meet the following five conditions:
- They must be essential for the protection of the company’s legitimate interests.
- They must be limited in time.
- They must be limited in geographical reach.
- They must take into account the specificity of the employee’s role.
- They must provide for financial compensation, commonly 33% of the employee’s previous wages. Collective bargaining agreements may provide specific conditions.
There is no specific requirement for customer non-solicits to be remunerated. However, the validity of this type of agreement is currently challenged by the courts, which may consider them to be a form of non-compete restriction, meaning they should be paid.
Waivers in France
In some circumstances, employees in France may waive certain rights as part of a settlement agreement concluded with an employer. Criminal claims are not covered by such a waiver. Settlement agreements cannot be used in the case of mutual termination of employment (rupture conventionelle).
Transfer of undertakings in France
A transfer of undertakings is when one business entity is wholly or partly acquired by another. In France, there are strict rules that apply to the employees of the transferred entity in this situation. Read on for what you need to know.
Employee rights after a transfer of undertaking in France
In a transfer of undertaking, the employees of the transferred entity are automatically transferred to the acquiring organisation. Their employment contracts are transferred in their totality, with employees retaining the same seniority, remuneration, and position. The new employers must also continue certain practices carried out by the former employer, such as paying a 13th salary. The collective bargaining agreement that applied to employees before the transfer continues to apply for 15 months. Employees must also continue to benefit from any profit-sharing arrangement in place.
Information and consulting obligations in France
There is no general obligation to inform each employee before a transfer takes place. However, employers with less than 250 employees must inform their employees if they intend to sell the business in order to facilitate a takeover by employees. There is also a legal requirement to consult with the company’s social and economic committee (CSE). In practice, it’s common to send each employee a brief letter summarising the changes that are about to take place.
Can an employee object to a transfer of undertaking in France?
Employees can’t object to a transfer of undertaking unless it will result in substantial changes, for example to their place of work. Refusal on the part of an employee could be grounds for dismissal for disciplinary reasons.
Avoid risk and missed opportunities with our end-to-end employment solutions
There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in France — or you could end up facing legal issues.
Our solutions ensure your business is protected from risk when a relationship with a worker comes to an end — whatever the reason. We can also help you to avoid missed opportunities by re-deploying talent where possible.
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