A Fixed-Term Employment Contract (CDD) cannot be utilized to fill a position related to the company’s regular and permanent activities on a long-term basis. It is specifically designed for the execution of precise and temporary tasks. The CDD is applicable in the following scenarios:

1. Substituting an absent employee (e.g., sick leave), an employee with a suspended employment contract, or, under certain circumstances, an employee who has left until a replacement begins.
2. Covering the hours of a full-time employee temporarily working part-time.
3. Meeting a temporary increase in the company’s business.
4. Addressing seasonal positions or roles typically filled by fixed-term contracts.
5. Substituting a company manager.
6. Recruitment under applicable employment policies (professional training, apprenticeship contracts, seniors’ contracts, etc.).
7. Utilizing a defined-objective and fixed-term contract for engineers and executives.
8. Engaging in jobs where indefinite-term contracts are not customary due to the nature of the activity (e.g., specific roles in hotels, catering, education, and sports).

The fixed-term contract must be documented in writing; otherwise, it will be considered a permanent contract. Non-signature by either the employee or the employer is deemed a lack of written agreement. The contract should be provided to the employee within two days of hiring and must include essential details such as the reason for the contract, end date, job title, and length of the trial period. Failure to provide a detailed description of the reasons for using a fixed-term contract may result in it being considered a permanent contract, with the employer facing a fine of €3,750.

During the contract period, an employee under a fixed-term contract enjoys the same rights as other company employees regarding working hours, salary, sickness coverage, the election of employee representatives, employment benefits, etc.

The fixed-term contract can have various duration options:

1. Date-to-date: Maximum duration of 18 months, including renewals (limited to two renewals).
2. Without a precise term: Linked to the achievement of the contract’s objective, with a required minimum duration.
3. The contract automatically expires at the term’s end, and upon completion, the employee receives: [details not provided].

• A compensation equivalent to 10% of the overall gross remuneration disbursed throughout the contract, given that no indefinite-term employment contract is agreed upon upon its conclusion.
• A compensatory allowance for accrued paid leave, regardless of the contract’s duration.
• Should the employment relationship persist beyond the stipulated term, it transforms into a permanent contract.

4. The fixed-term contract is not subject to termination before its designated term unless there is mutual agreement between the parties, instances of serious misconduct, or force majeure. Additionally, termination is permissible if the employee can substantiate being initially hired under a permanent contract.
5. Apart from these scenarios, premature termination of the contract leads to the following consequences:

• The employer must compensate the employee, and the amount shall be no less than the remuneration the employee would have received until the contract’s completion.
• The employee may be obligated to indemnify the employer for any losses incurred by the company.

6. Consecutive fixed-term contracts: A fixed-term contract can be extended only twice within a maximum duration of 18 months. It is imperative that a fixed-term contract is not utilized to fill a position connected to the company’s regular and ongoing business. Entering into successive fixed-term contracts for the same job is permissible only if there is a gap between the contracts, as outlined below (unless there are exceptional circumstances):

• One-third of the elapsed contract term for contracts lasting longer than 14 days.
• Half of the elapsed contract term for contracts with a duration of less than 14 days.

Special arrangements may be specified by an extended Collective Bargaining Agreement (CBA).

The employer must notify the local competent Social Security Authorities office (‘URSSAF’) about any newly hired employee within eight days before the commencement of work. This notification is carried out through a declaration of employment process (‘Déclaration préalable à l’embauche’ or DPAE). URSSAF is responsible for receiving the mandatory social security contributions, which are contributed by both the employer and the employee.

The DPAE serves the additional purpose of facilitating the employee’s registration and affiliation with occupational medical services (‘Service médical du travail’) and the unemployment fund (‘Pôle emploi’). It also facilitates the organization of the first mandatory medical examination.

Furthermore, the employer is obligated to enroll the employee in the mandatory complementary retirement funds, determined by the employee’s status (e.g., non-executive: ‘non-cadre’ or executive: ‘cadre’) and welfare plans.

Failure to complete the DPAE may result in a penalty equivalent to 300 times the hourly rate of the guaranteed minimum wage (€11.52 as of May 2023). Additionally, there may be penalties for engaging in illegal work.

The employer is responsible for scheduling an “information and prevention visit” (‘visite d’information et de prévention’ or VIP) for new hires with the company’s occupational physician or another qualified occupational health professional. The VIP constitutes a medical interview designed to gather information about the employee’s health, offering insights into potential risks and prevention measures. Additionally, it assesses whether a more comprehensive medical examination is necessary.

It is crucial to ensure that an appointment with the occupational health center is arranged for the new employee within the specified timeframes:

• An information and prevention visit for employees not exposed to specific risks should occur within three months from the effective start of the job. Certain exceptions may apply, allowing for the waiver of this timeframe.

• Employees assigned to positions in environments with potential special risks are required to undergo a specialized pre-recruitment medical examination.

The Labor Code provides for probationary periods to allow employers to assess employee competence and to enable employees to evaluate the suitability of the job.

For indefinite-term employment contracts, maximum probationary periods are as follows:

• Two months for blue-collar and white-collar employees.
• Three months for supervisors and technical employees.
• Four months for managers and professional staff.

These probationary periods may be extended, but only up to double the original duration, contingent upon industry-wide Collective Bargaining Agreement (CBA) allowances. The presence of a probationary period must be explicitly stated in the employment contract or letter of engagement, specifying the length and potential for extension.

In case of termination by the employer during a probationary period, the notice period varies:

• 24 hours during the first seven days.
• 48 hours during the rest of the first month.
• Two weeks during the second and third months.
• One month during the 3rd and 6th months.
• Six weeks during the 6th and 8th months.

As per applicable CBA, if the employee terminates employment during the first month of a probationary period, they must provide 24 hours’ notice, and during the rest of the probationary period, 48 hours’ notice.

Fixed-term employment contracts may also include a probationary period, subject to specific rules. The statutory maximum duration is one day per week, up to a limit of two weeks for a fixed-term contract of six months or less. For a fixed-term contract exceeding six months, the maximum probationary period is one month. If either party terminates the contract during the trial period, a notice period must be observed. When the contract lacks a specific term, the trial period is calculated based on the minimum duration of the contract.

For full-time employees, the standard working time set by the Labor Code is 35 hours per week, although an applicable Collective Bargaining Agreement (CBA) may specify different normal weekly hours. Any hours worked beyond the statutory or collectively agreed normal weekly hours are generally considered overtime. Conversely, an employee working fewer than normal hours is classified as part-time.

Under the general rule, an employee should not work for more than 10 hours a day, inclusive of overtime. However, a CBA, either at the company or industry level, may extend the maximum daily working time to 12 hours for reasons related to the company’s operations or to address increased activity. Exceeding the 10-hour limit is also permitted in emergencies or if authorized by the Labor Inspectorate, such as in cases of temporary workload surges.

Moreover, as a general rule, an employee should not work more than 48 hours in any week or more than 44 hours on average over a 12-week period, including overtime. The Labor Inspectorate has the authority to permit a working week of up to 60 hours in exceptional circumstances. Additionally, a CBA, either at the company or industry level, may establish a provision allowing employees to work up to 46 hours on average over a 12-week period. In the absence of a CBA, the Labor Inspectorate may grant authorization for such an arrangement.

These regulations apply to adult employees, excluding managing executives who are considered the highest-ranking managers in a company. The Labor Code’s rules on normal and maximum working hours, overtime, “all-in” working time agreements, night work, rest breaks, and rest periods do not apply to managing executives.

In general, any hours worked by full-time employees beyond 35 hours in a week are considered overtime, typically entitling the employee to a supplementary payment. If a Collective Bargaining Agreement (CBA), either at the company or industry level, specifies a pay supplement, it must be at least 10% above the employee’s regular rate. In the absence of a CBA, the Labor Code mandates a 25% supplement for the first eight hours of weekly overtime and 50% for subsequent hours.

Compensation for overtime can also take the form of time off, as stipulated by a CBA (at the company or industry level). The time off granted should be equivalent to the overtime hours plus the pay supplement that would have been applicable (e.g., if the regular pay includes a 25% supplement for overtime, the employee must receive 1 hour and 15 minutes of time off).

Each employee has an individual overtime quota, set at 220 hours per year, unless a CBA provides for a different limit. Although employers can mandate overtime work, it is subject to an annual quota, and employees generally cannot refuse reasonable requests. Overtime hours compensated with time off do not count toward the annual quota.

Compensation rules for overtime apply up to the annual quota. If an employee exceeds the annual quota, compensation must be provided in time off, with rates set at 100% in companies with 20 or more employees and 50% in smaller companies, unless a CBA prescribes higher rates.

Certain categories of employees, particularly executives, may work based on a maximum number of days per year (e.g., 218 or fewer), as allowed by a CBA or company agreement. This system permits employees to work ‘long days’ without triggering overtime. To offset the extended hours and adhere to the maximum number of working days, employees are granted additional rest days (‘Réduction du temps de travail’ or RTT). Regardless of the working time system, compliance with working hours limits is essential, which may include 10 hours per day, 48 hours per week, and 44 hours on average over a 12-week period, subject to any more stringent limitations outlined in a CBA.

Establishing a Portage Salarial business requires careful consideration of the following aspects concerning worker remuneration:

• Base salary, encompassing a compulsory “5% finders fee,” constitutes an integral part of the total base salary, as explicitly indicated on the payslip.
• In addition to the remuneration, a supplementary “10% financial reserve” is required to be appended and accrued in the worker’s activity account. Although not accessible during employment, this reserve is earmarked and must be disbursed to the worker upon the conclusion of employment or work activity.
• Potential fluctuating compensation
• Compensation, if necessary

The provision of a 13th-month payment is not a widespread practice and is contingent upon the internal policies of the company.

In France, it is customary to acknowledge employees through bonus structures, which can be categorized into two types:

1. Discretionary Bonuses: Discretionary bonuses are granted at the employer’s discretion, and their inclusion is not mandatory in the overall remuneration package. However, according to a ruling by the French Supreme Court:

• These bonuses must be justified on objective and appropriate grounds.
• The employee must be informed of these grounds before entering into the employment contract. The feasibility of granting discretionary bonuses is open to debate.

2. Contractual Bonuses: If a bonus is explicitly outlined in the employment contract, it becomes a contractual component of the remuneration package and can only be altered with the consent of the employee. The French Supreme Court has established criteria for contractual bonuses:

• Variations must be based on objective criteria independent of the employer’s preferences.
• The employee should not bear the employer’s risk.
• The employee’s salary should not fall below either the statutory minimum wage or the minimum salary stipulated by a relevant Collective Bargaining Agreement (CBA). Certain CBAs mandate bonuses, and they are subject to the same rules as contractual bonuses.

Bonuses may also be disbursed based on company practice. If this practice is consistent, fixed, and applicable to a specific group of employees, the bonus is considered an integral part of the employer’s obligation. Terminating such a bonus involves a procedural approach that includes:

• Individually informing the employees.
• Notifying the staff representatives.
• Adhering to a reasonable notice period, typically a minimum of three months.

An employment contract enters a state of suspension when the employee is absent from work for various reasons, including:

• Taking leave for maternity, paternity, parental, adoption, and other family-related reasons.
• Participating in a strike.
• Being on sick leave or experiencing an accident.
• Facing suspension initiated by the employer, such as for disciplinary reasons.

During the suspension of the employment contract, the employee is temporarily relieved of the obligation to work. While the employer is not obligated to provide compensation during this period, the contract remains in force and is not terminated. However, in the case of sick leave, the employer must adhere to payment requirements outlined in the Labor Code or applicable Collective Bargaining Agreement (CBA). Additionally, during maternity, paternity, and parental leave, employees typically receive social security benefits, which may be supplemented by the employer.

Throughout the suspension period, the employee is still bound by the contractual obligation of loyalty to the employer, prohibiting them from engaging in work for another employer. Upon completion of the suspension period, the employee is expected to return to their previous position or a similar role aligned with their skills. They are entitled to receive at least the same remuneration as before the suspension.

The Labor Code stipulates a minimum notice period when an employer terminates the indefinite-term employment contract of an employee with a tenure of at least six months, applicable after the conclusion of any probationary period. The initial minimum notice period is one month, increasing to two months after two years of service. During the first six months of employment, the notice period is determined by the relevant Collective Bargaining Agreement (CBA), employment contracts, or established practices within the company or occupation.

In cases where the employee initiates the termination of the employment relationship, the notice period is contingent on the employee’s seniority in the company and professional status. Sector-specific CBAs typically define these details, with the notice period generally ranging from one to three months. Parties may negotiate shorter periods, and certain CBAs may exempt employees from any notice period if they secure new employment.

Employers have the option to waive all or part of the notice period and provide payment in lieu of the unfulfilled duration. At the request of the employee, the employer may agree to waive all or part of the notice period, resulting in the contract concluding on a mutually agreed-upon date without the necessity for a payment in lieu.

Termination by the Employer

An employer holds the authority to terminate an employee under an indefinite-term employment contract for either of the following reasons:

1. Personal Reasons
2. Economic Reasons

Different rules and procedures govern these two types of dismissal. Notably, during the probationary period, the standard rules on dismissal do not apply.

Special protections against dismissal are afforded to employee representatives, including trade union delegates and those serving on social and economic committees.

1. Personal Reasons:

Dismissal for personal reasons may pertain to factors such as the employee’s conduct, incapacity, lack of competence, inadequate aptitude, or refusal to accept a modification of the employment contract. For the dismissal to be valid under an indefinite-term employment contract, the employer must have a “real and serious” cause, rooted in factual, precise, and verifiable reasons significant enough to justify termination. The Labor Code explicitly outlines certain reasons that can never be considered as a valid cause for dismissal, including unlawful discrimination, the employee’s health or disability (except in cases of certified incapacity for work), pregnancy, maternity, political opinions, trade union membership or activities. It also covers instances where the employee has experienced, refused to undergo, or reported sexual or psychological harassment. Additionally:

• involved in legal “whistleblowing”
• participated in a lawful strike
• exercised a legal entitlement

Matters pertaining to an employee’s private life will not be considered a legitimate and significant cause for dismissal unless they objectively cause disruption or involve a breach of the employee’s duty of loyalty.

Concerning dismissal based on employee conduct, a distinction exists between “simple misconduct” (‘faute simple’), “serious misconduct” (‘faute grave’), and “gross misconduct” (‘faute lourde’). Simple misconduct, such as mistakes or negligence at work, can constitute a legitimate and significant cause for dismissal with notice. Serious and gross misconduct warrant dismissal without notice.

Misconduct is deemed serious if it violates the employee’s contractual obligations, renders further employment impossible, and is directly attributable to the employee. Examples of serious misconduct include harassment, workplace violence or threats, unjustified absences, indiscipline, insubordination, theft from the employer, and being intoxicated at work.

Misconduct is considered gross only when the employer can prove it was committed with the intention of harming the employer, including actions like preventing non-strikers from working or using violence during a strike, and engaging in disloyal competition with the employer.

Before an employer decides to dismiss an employee for personal reasons, the employee must be summoned to a “pre-dismissal interview.” During this interview, the employer must explain the reasons for considering dismissal and seek an explanation from the employee. The employee may choose to be accompanied by another company employee, or in the absence of employee representatives, by an external “employee advisor.” No later than two working days after the interview (or within one month in the case of disciplinary dismissal), the employer may send a dismissal letter to the employee, stating the reasons for the dismissal. Within 15 days of receipt, employees have the right to request further precise details of the dismissal reasons.

Dismissal for employee misconduct cannot occur unless the proper disciplinary procedure has been followed. No notice is required in cases of dismissal for serious or gross misconduct, and the contract ends immediately.

Dismissal related to an employee’s incapacity to work is subject to special rules. An employer cannot simply dismiss an employee based on their health. Dismissal on health grounds is only possible if the employee’s illness or injury renders them incapable of work or disrupts the company’s operation, necessitating the hiring of a permanent replacement. In cases of employee incapacitation, the employer must follow a process involving attempts to identify suitable alternative work and consultation with the occupational physician.

2. Economic Reasons:

Dismissal for economic reasons involves terminating the employee’s job due to the elimination or transformation of the position for a legitimate and significant cause. It can also occur if the employee refuses to accept a related modification of the employment contract. Legitimate and significant causes include:

• economic challenges (detailed criteria outlined in the Labor Code)
• technological advancements
• a company restructuring essential for maintaining competitiveness
• cessation of the company’s operations

Before initiating the dismissal of any employee for economic reasons, the employer is required to undertake various efforts to train and adapt the employee, seeking to redeploy them to another position. This process adheres to an order of selection for dismissal, based on specific criteria, including family responsibilities, length of service, challenges in securing new employment (e.g., due to age or disability), occupational attributes, and aptitudes.

The procedures to be followed, along with the employer’s obligations, depend on whether the employer is planning:

a. Individual dismissals

For individual dismissals due to economic reasons, the procedure is essentially the same as for dismissals based on personal reasons. It involves an interview followed by a dismissal letter to the employee. In the case of economic dismissals, the letter must not be sent until at least seven working days following the interview (15 days for managers and professional staff). In companies with fewer than 1000 employees, the employer must, during the procedure, offer the employee a “professional security contract” (‘contrat de sécurisation professionnelle’ – CSP) with the ‘Pôle emploi’ public employment service, aiming to assist employees in finding new employment.

The employer must inform the ‘Directe’ regional employment authorities about individual dismissals for economic reasons.

b. Collective economic dismissals – Fewer than 10 dismissals

If an employer intends to dismiss two to nine employees for economic reasons over a 30-day period, they must consult the social and economic committee, providing information on:

• the economic, financial, or technical reasons for the proposed dismissals
• the number of proposed dismissals
• the categories of employees and the proposed criteria for selecting who is to be dismissed
• the total number of employees working at the establishment
• the planned schedule for the dismissals

The committee has one month to offer an opinion. The employer can then proceed with the dismissals similarly to an individual dismissal for economic reasons, including informing the ‘Direccte’ regional employment authorities.

Collective economic dismissals – 10 or more dismissals

In companies with fewer than 50 employees, special rules apply if the employer plans to dismiss 10 or more employees for economic reasons over a 30-day period. The employer is required to consult the social and economic committee, providing the same information as required for two to nine economic dismissals. The consultation process involves at least two meetings of the committee, separated by no more than 14 days. The employer must send the ‘Directe’ the same information provided to the social and economic committee and notify it when the final decision is taken on the dismissals. The employer can send dismissal letters to the employees no sooner than 30 days following this notification. Generally, there is no requirement to conduct individual interviews with each employee.

Resignation – Termination by the Employee:

An employee on an indefinite-term employment contract can resign at any time, without having to provide a reason. Special rules apply to resignation during a probationary period.

An employee who resigns must clearly and unequivocally indicate their wish to terminate the employment contract. An absence alone is not sufficient for the employer to assume the employee has resigned from their position. Hence, the employee must inform the employer (orally or in writing) of their intention to resign. If an employee resigns due to pressure from the employer (as opposed to their own free will), an employment tribunal may regard this as a dismissal without a real and serious cause.

The employee is generally required to give notice of resignation. The notice period is not explicitly stipulated in the Labor Code but is left to the employment contract, an applicable collective agreement, or customary practice. The regulations on dispensing with the notice period and payment in lieu of notice are the same as in cases of dismissal.

Termination by Mutual Agreement:

An indefinite-term employment contract can be terminated by mutual agreement between the employer and employee, using a procedure known as ‘rupture conventionnelle,’ outlined in the Labor Code. This form of termination results from the mutual consent of the parties. It can be annulled by an employment tribunal if it finds the employer placed undue pressure on the employee to agree to the termination. The procedure is as follows:

• The employer and employee must meet at least once to agree on the terms of termination. The employee can be accompanied at this meeting by another company employee. In the absence of employee representatives within the company, they can have an external “employee advisor” join them.
• Both parties must sign an agreed-termination agreement, specifying the date of termination and the compensation payment for the employee. This compensation is a mandatory feature of an agreed termination, at least equaling the severance payment the employee would receive if dismissed.
• In the 15 calendar days following the conclusion of the agreement, either the employee or employer can retract their consent.
• The employer or employee must submit the signed agreement to the ‘Direccte’ regional employment authorities for approval or rejection. The agreement is not deemed valid until it is approved.

The Labor Code also provides for a mechanism whereby a collective agreement may set the conditions for a number of employees of the same employer to voluntarily terminate their employment by agreement.

Unjustified, Irregular, or Null and Void Dismissal:

Employees wishing to contest the validity of their dismissal may file a claim before an employment tribunal (‘conseil de prud‘hommes’). The employee can claim their dismissal was “null and void,” “unjust

A dismissal is considered null and void (‘licenciement nul’) if it is based on reasons explicitly prohibited by law, such as discrimination. In the event of a null and void dismissal, the tribunal may order the reinstatement of the employee with back pay. The employer can only object to reinstatement if it is genuinely impossible. If the employee opts not to be reinstated or reinstatement is not feasible, the tribunal mandates the employer to provide compensation equivalent to at least six months’ pay, with no maximum limit. Additionally, the employer must fulfill any termination-related payments owed to the employee.

An unjustified dismissal (‘licenciement injustifié’) occurs when there is no “real and serious” cause for termination. If the tribunal determines the lack of a valid cause, reinstatement can be ordered only if both the employer and employee agree, the employee has a minimum of two years’ service, and the employer has at least 11 employees. Otherwise, the tribunal will award compensation, which varies within a specified range. The maximum compensation increases gradually from one month’s pay for less than one year of service to 20 months’ pay after 29 years of service. The minimum compensation also increases progressively, ranging from half a month’s pay after one year of service to three months’ pay after 11 years of service for companies with 10 or fewer employees. For companies with 11 or more employees, the minimum compensation ranges from one month’s pay after one year of service to three months’ pay after two years of service.

An irregular dismissal (‘licenciement irrégulier’) takes place when the employer fails to follow the proper procedure, but this lapse is not substantial enough to render the dismissal null and void or strip it of its genuine and serious justification. In these instances, the tribunal has the authority to instruct the employer to pay compensation, capped at one month’s pay, and to rectify the relevant procedure appropriately.

When the employer neglects the required information gathering, consultation, and notification procedures applicable to collective economic dismissals, employees have the option to pursue compensation at an employment tribunal if they can demonstrate that they have incurred damages.

Termination specific to Portage Salarial setup

For any termination initiated by the employer’s decision, the commencement of mutual termination must be facilitated by GoGlobal, as it represents the most efficient and cost-effective procedure. This is because the client’s reasons for termination may not be applicable to the business situation (economic, performance, etc.) of the EOR employer, GoGlobal.

An additional basis for supporting contract termination is the potential suspension of the work mission, which is mandatory according to Portage salarial, triggered by the client terminating their work mission with the worker. Regardless, at this stage, a termination process must be set in motion.

Crucially, for the initiation of the process, the client is required to notify GoGlobal well in advance of the mission’s termination, providing at least 3 months’ notice before the end date, as stipulated in the Service Agreement.

It is important to note that the process is exclusively organized and communicated by GoGlobal. While the client maintains contact with the GoGlobal HR team, direct communication with the affected employee is not within their purview, ensuring confidentiality throughout the overall process. Nevertheless, the client will receive a comprehensive overview and decision-making status regarding the process.

Permissible restrictive covenants hinge on justification through the company’s business needs and the employee’s role.

Non-compete agreements are acceptable if they meet five conditions. The restrictive covenant must:

• Be essential for safeguarding the company’s legitimate interests.
• Have a limited duration.
• Be geographically restricted.
• Consider the specificities of the employee’s duties.
• Include financial compensation, typically at least 33% of the employee’s compensation for the non-compete period. Collective Bargaining Agreements (CBAs) may outline specific terms.

In the case of customer non-solicits, there is no legal mandate for financial compensation. However, their validity is currently under scrutiny by the courts, with many interpreting them as de facto non-compete restrictions that should be adequately compensated.

Employee non-solicits are generally permissible without stringent restrictions.

Unless the dismissal is due to serious or gross misconduct, employees under indefinite-term contracts are eligible for severance payment if they have served the employer for a minimum of eight months. The Labor Code mandates the minimum payment, which is established at one-quarter of the employee’s gross monthly remuneration for each of the initial 10 years of service, and one-third of the gross monthly remuneration for the 11th year and beyond.

Upon termination of employment, employees are entitled to receive compensation for any accrued but unused annual holiday entitlement. In situations where the employer has waived all or part of the notice period, a payment in lieu of termination is required.

Regardless of the termination’s reason or the type of employment contract, the employer must furnish the employee with:

• A “work certificate” (‘certificat de travail’) containing details such as the employer and employee names, start and end dates of employment, and the job roles performed.
• A “full and final settlement” (‘solde de tout compte’) providing a comprehensive breakdown of all sums disbursed to the employee upon termination.
• An official form outlining various employment details necessary for the employee to claim unemployment benefits from the ‘Pôle emploi’ public employment service.

The GDPR, which became enforceable on May 25, 2018, governs the processing of personal data within the EU. Consequently, it is applicable in France, and employers are obligated to adhere to its provisions when dealing with any personal data.

• The GDPR delineates the rights of data subjects, including the right to access, data erasure, data portability, and consent.
• In instances where data processors/controllers engage in operations that involve regular and systematic monitoring of data subjects on a large scale or the processing of special categories of data, the appointment of a Data Protection Officer (DPO) is mandatory.
• Data transfers beyond the EU are subjected to additional requirements. There are notable restrictions on monitoring internet and email use, even when utilizing a company’s IT devices.
• The National Commission for Data Protection and Liberties (CNIL), also known as ‘Commission Nationale de l’Informatique et des Libertés,’ oversees the national enforcement of the regulation and addresses complaints.
• In the context of the recruitment and selection process, employers must adhere to data protection laws when collecting and processing personal data from and about candidates.

Data protection rights for employees encompass specific provisions designed to safeguard their information. Employees possess the following rights:

• View the information stored about them
• Retrieve the information
• Seek the deletion of the information
• Limit the processing of the information
• Request or limit the portability of the information
• Express objections to the retention of the information

Data protection responsibilities for employers – Employers, acting as data controllers, must adhere to six principles outlined in Article 5 of the GDPR when collecting, processing, and storing personal data of employees:

• Ensure the legality, fairness, and transparency of the gathered data
• Restrict the use of data solely to the intended purpose of collection
• Minimize the data collected to the necessary extent
• Verify the accuracy of the data
• Limit stored data to only essential information
• Guarantee the integrity and confidentiality of the data

Employers bear responsibility and must continuously demonstrate adherence to these principles, maintaining accountability. This entails implementing suitable technical and organizational measures to ensure a level of security commensurate with the associated risks, including:

• Keep a record of processing activities
• Appoint, as needed, a Data Protection Officer
• Inform employees and the Data Protection Authority (Commission Nationale de l’Informatique et des Libertés – CNIL) about any breaches

Recording or storing personal data related to individuals is prohibited, except for religious bodies, political parties, or unions, and this can only be done with the explicit written approval of the concerned party.

• Origins based on race or ethnicity
• Opinions on politics, religion, or philosophy
• Membership in unions
• Medical information
• Sexual orientation

Whenever an employer disburses wages to an employee, they are obligated to provide a payslip (‘bulletin de paie’). By default, the payslip is furnished in electronic format unless the employee objects; however, the employer must supply a paper payslip upon the employee’s request. The employer is required to retain copies of employees’ payslips, whether in electronic or paper form, for a minimum of five years.

The payslip must include the following details:

• Employer’s name and address
• Name of the establishment where the employee works
• Employer’s field of work (as per an official list of activities)
• Registration number in the official national business directory if applicable
• Name of the industry-level collective bargaining agreement (CBA) if covered; if not covered, reference to applicable articles of the Labour Code regarding notice period and annual leave
• Employee’s name
• Employee’s job title and position as per the relevant job classification scheme
• Pay period and total hours worked, distinguishing between normal and higher-rate hours (specifying the higher rate, with specific rules for “all-in” working time agreements)
• Details of ancillary payments subject to social security contributions
• Gross remuneration for the pay period
• Amount of income tax deducted
• Social security and related contributions (both employee and employer contributions, before any exemptions or rebates, with rates specified)
• Details of other deductions or additions
• Net amount of remuneration received by the employee
• Payment date
• Details of annual leave used and corresponding pay in the pay period
• Details of social security contributions paid by scheme (health, retirement, family benefits, unemployment, and occupational accidents and diseases)
• Total amount of any social security contribution exemptions or rebates
• Total amount paid by the employer (gross remuneration plus employer’s social security contributions minus exemptions or rebates)
• Reference to payslip information on the official authority website: www.service-public.fr
• Advisory for the employee to retain the payslip for their records.

In 2019, the European Court of Justice emphasized the requirement for companies to establish an objective, reliable, and accessible system enabling the recording of each employee’s daily work hours.

The Labour Code stipulates that employees are entitled to a minimum of 2.08 working days of paid annual leave for each month of employment with the same employer, resulting in an annual entitlement of 25 working days. In certain cases, employees with a child under the age of 15 (or a disabled child of any age) are granted an additional two days of leave per child.

Certain matters related to annual leave must be determined through a collective bargaining agreement, either at the company or establishment level, or, if unavailable, at the industry level. In the absence of such an agreement, the employer, after consulting the social and economic committee, is responsible for making these determinations.

These matters include:

• The dates of the “annual leave period,” recommended for employees to take a portion of their leave, spanning from May 1st to October 31st.
• The schedule for employees to take their leave during the annual leave period, considering factors such as family situation and length of service.
• While employees can request specific leave times, the employer is not obligated to comply with such requests. Employees must be informed of their leave dates at least one month in advance.

Annually, employees are required to take one period of annual leave lasting at least two consecutive weeks during a specified period. A collective bargaining agreement may determine this period and establish rules for the remaining annual leave.

Generally, an employee cannot take more than four consecutive weeks of leave, although the employer can permit a longer period in certain cases.

During annual leave, employees must receive holiday pay, calculated by employing the more favorable of the following two methods:

• 10% of the employees’ gross remuneration over the period from June 1st in the previous year to May 31st in the current year (equivalent to one-tenth of their annual pay for the full five weeks of annual leave).
• The remuneration the employee would have earned if they had worked during the annual leave period.

On May 1st, all employees are mandated to have the day off from work without any reduction in pay, except in sectors where this is unfeasible, such as hospitality, hospitals, and public transport. Employees who work on May 1st are entitled to receive double pay. Alongside May 1st, there are typically 10 additional official national public holidays annually.

For adult employees, there is no statutory entitlement to a day off on these holidays. Nevertheless, based on a collective agreement or company practice, most employers usually grant employees a day off on all or most public holidays. Employees under the age of 18, however, must be provided a day off on all public holidays, although collective agreements may specify exceptions in certain industries, such as catering, hotels, and specific areas of retail.

Special rules apply to public holidays other than May 1st. If employees are granted a day off, it must be without any deduction in pay. This condition is applicable if the employee has completed at least three months of service, with the possibility of more advantageous conditions specified in a collective agreement. Additionally, if there is a collective agreement, it may provide specific conditions for employees.

• If employees choose to work, they are not eligible for an increased pay rate or compensatory time off. Nevertheless, relevant provisions in a collective agreement may cover these aspects.
• In the event that a public holiday falls on a day not typically worked, such as a Sunday, the employer is not obligated to defer the observance of the holiday to a later time. This implies that the holiday does not need to be rescheduled for the following Monday.

In accordance with a collective agreement or established company practice, it is customary for employers to provide “bridge” days between a public holiday and the weekend, offering employees an extended period of consecutive time off. Compensation for these days, or the requirement to compensate for the time off later, will be determined by the applicable collective agreement. In the absence of such an agreement, the matter is subject to the employer’s discretion.

Employees are mandated to work without pay for one day, equivalent to seven hours, each year as part of a “solidarity day.” The wages for this day contribute to funding measures aimed at assisting vulnerable groups. The specifics of this scheme should be outlined in a collective agreement, and in its absence, the employer will determine the details after consulting with the social and economic committee. Typically, this may involve employees working unpaid on a Saturday or a public holiday (excluding May 1st).

An employee unable to work due to illness or injury is required to promptly inform the employer. Subsequently, the employee must obtain a medical certificate for work stoppage from a doctor and send it to the employer, typically within two days of the commencement of the sickness absence. Additionally, the employee is obliged to forward the certificate to the relevant sickness insurance fund (CPAM) within the same two-day timeframe.

Following the initial three days of sickness absence, employees become eligible for daily sickness benefits (‘indemnités journalières’ – IJ) from their CPAM, subject to meeting specific eligibility criteria based on their employment or contribution history. Generally set at 50% of the employee’s basic pay, these benefits are capped. Typically, eligible employees are entitled to receive a maximum of 360 days of benefits within any three-year period.

If an employee with at least one month of service is receiving CPAM sickness benefits, the employer is required to provide additional benefits after the initial seven days of sickness absence. An applicable collective agreement may stipulate a shorter “waiting period.” These supplementary benefits augment CPAM benefits to reach 90% of the employee’s gross remuneration for a period ranging from 30 to 90 days, dependent on the employee’s length of service. Following this period, the additional benefits then amount to two-thirds of the gross remuneration, again applying for a period of 30 to 90 days, depending on the employee’s length of service.

During the sickness absence, the employee’s employment contract is suspended. Special rules are in place for occupational accidents and diseases.

Maternity leave

Pregnant employees are mandated to observe an eight-week maternity leave (‘congé de maternité’), with a minimum of six weeks post the child’s birth. Additionally, employees have the right to take:

• For a first or second child, 16 weeks of maternity leave are granted — six weeks before the birth and 10 weeks after.
• In the case of a third or subsequent child, 26 weeks of maternity leave are provided — eight weeks before the birth and 18 weeks after.
• In the event of giving birth to twins, 34 weeks of maternity leave are applicable — 12 weeks before the birth and 22 weeks after.
• For the birth of triplets (or more), 46 weeks of maternity leave are allowed — 24 weeks before the birth and 22 weeks after.

Subject to the approval of their physician, an employee has the right to reduce the antenatal segment of their leave to a minimum of three weeks. Instead, this unused portion can be added to the postnatal part of their leave. If the employee experiences an illness related to pregnancy or childbirth, the maternity leave can be extended by up to two weeks before the birth and four weeks after. In the case of a premature birth, the untaken antenatal leave is typically appended to the postnatal period. If the birth occurs later than the due date, the postnatal portion of the maternity leave remains unaffected. In the unfortunate event of a stillborn or the death of the child late in the pregnancy, the mother retains the entitlement to maternity leave. In the tragic event of the mother’s demise during maternity leave, the child’s father may utilize the remaining leave.

Advance notice of planned maternity leave, specifying start and end dates, is required from the employee. During maternity leave, the employment contract is temporarily suspended, and the employer is not legally obligated to provide payment. The employee is generally entitled to earnings-related social security maternity benefits, provided they meet eligibility criteria. Employers may enhance these benefits during maternity leave, in accordance with a collective agreement, the employment contract, or company policy.

Upon conclusion of maternity leave, employees resume their prior role (or a similar one) with remuneration at least equivalent to what they received previously. A return-to-work interview, organized by the employer within 8 days of the employee’s return, covers matters such as potential health-related adjustments to the job. Additionally, employees have the right to a meeting to discuss their career development.

Protection for women who are pregnant or have recently given birth

From the moment an employee is medically confirmed to be pregnant, the employer is generally prohibited from dismissing her. This safeguard extends throughout the entire period during which the employee is eligible to take maternity leave, whether or not she utilizes her full entitlement. The protection also covers any period of paid annual leave immediately following maternity leave and persists for 10 weeks after the conclusion of maternity leave (or, if applicable, annual leave). The employer can only terminate the contract within this protected period if the employee engages in serious misconduct unrelated to her pregnancy or if, for reasons unrelated to pregnancy or birth, it is impossible to continue her employment. Even in such cases, termination or notice of termination cannot be issued during the employee’s maternity leave.

Employees who are pregnant, have recently given birth, or are breastfeeding should not perform certain types of work posing specific risks to their health or safety. In such cases, the employer is obligated to provide alternative work without any loss of pay. If this proves impractical, the employer must place them on leave. Moreover, a pregnant employee may be temporarily reassigned to another position without a reduction in compensation, either at her request or on the employer’s initiative, supported by a medical certification confirming the necessity of such a move.

Qualified employees have the right to paid time off for antenatal and postnatal medical appointments.

Adoption leave

Employees are entitled to adoption leave (‘congé d’adoption’) when adopting a child. If one adoptive parent opts for adoption leave, they are eligible for 10 weeks if they already have one child or fewer, and 18 weeks if they already have two or more children. In the scenario where both adoptive parents take leave, they can collectively share the same amount of leave as one parent, plus an additional 11 days. Following the simultaneous adoption of two or more children, if one adoptive parent takes leave, they are entitled to 22 weeks, regardless of the number of existing children. When both adoptive parents take leave, they share the 22 weeks and receive an additional 18 days. Adoption leave commences on the day the child arrives in the family home or up to one week earlier.

Adoption leave follows similar regulations as maternity leave, covering aspects such as notifying the employer, suspension of the employment contract, protection against dismissal, pay, benefits, and return to work (excluding interviews and meetings). Eligible employees are entitled to the same social security benefit, which may be divided if both parents decide to share the leave.

Paternity and Childcare leave

Employed fathers are entitled to paternity leave (‘congé de paternité et d’accueil de l’enfant’) upon the birth of their child. This right extends to an employee of either sex, who is not the father but is the spouse, civil partner, or cohabitee of the child’s mother.

The duration of paternity and childcare leave is 25 calendar days (32 days in the case of multiple births), and it can be availed on all days of the calendar year, including public holidays. The leave is divided into two distinct periods as follows:

• One obligatory period of 4 calendar days to be taken immediately following the 3-day birth leave, followed by
• a second period of 21 calendar days (28 days in the case of multiple births).

Note: A required 4-day period of paternity and childcare leave must be taken immediately following the 3-day birth leave. In cases where the child is hospitalized immediately after birth, specific leave may be granted.

Paternity leave adheres to many of the same regulations as maternity leave, covering aspects such as the suspension of the employment contract, protection against dismissal, pay, benefits, and return to work (excluding interviews and meetings). Employees cannot be terminated during paternity leave, except for instances of serious misconduct or when it is impossible to continue the employment contract for reasons unrelated to the paternity leave.

Parental leave

Biological and adoptive parents with at least one year of continuous service are eligible for parental leave (‘congé parental d’éducation’). This leave can commence after the conclusion of the mother’s maternity leave or the adoptive parent’s adoption leave. One parent can take the entire allotment of parental leave, or both parents can share it.

For the birth of one child or twins, the initial period of parental leave is one year, renewable twice, with completion by the child’s third birthday or when they enter nursery school. In the case of triplets (or more), the initial one-year period can be renewed up to five times, ending by the children’s sixth birthday. The duration and renewal rules for adoption parental leave depend on the number and ages of the adopted children. In all cases, parental leave can be extended by up to one year for children with serious health problems or disabilities.

Employees seeking parental leave must notify the employer of the planned start date and duration, lasting for one or two months depending on circumstances. Renewing parental leave (or transitioning to part-time work) requires one month’s notice. Returning from leave earlier than planned requires employer agreement.

During parental leave, the employment contract is suspended, and the employer is not obligated to provide payment. Income-related social security benefits may be available for part or all of the leave, depending on the family situation. Parents sharing leave may receive additional benefits.

While on parental leave and upon return, employees have entitlements to receive training from the employer to stay current with workplace developments. After the leave, employees return to their prior role (or a similar one) with at least equivalent remuneration. A meeting with the employer discussing career development is provided.

Alternatively, employees can opt for part-time parental leave, working at least 16 hours a week, with the same rules as parental leave applying. Payment is normal for hours worked, and social security benefits may apply for the remaining time.

The Labor Code encompasses a diverse range of leave types, catering to caregiving, family matters, personal concerns, and engagement in public or other responsibilities. In the majority of instances, specific regulations govern aspects like leave application, contract suspension, and the process of returning to work.

Purpose; Time off for various family events—primarily deaths, births, and marriages

Amount Of Leave (subject to variation based on CBA, featuring distinct terms more favorable than statutory entitlement):

• Death of the employee’s child — five days
• Employee’s marriage or civil partnership — four days
• Birth or adoption of a child in the employee’s household — three days
• Death of the employee’s spouse, civil partner, cohabitant, sibling, parent, or parent-in-law — three days
• Discovering that the employee’s child has a disability — two days
• Marriage of the employee’s child — one day

Conditions;

• The leave is remunerated.
  There is no requisite minimum length of service to qualify.

Purpose: Providing care for a child under the age of 20 with a severe illness, injury, or disability and substantial care requirements

Amount of Leave: Up to 310 working days per child

Conditions;

• The leave is unpaid, but the employee may qualify for benefits.
• No minimum length of service is required for eligibility.
• The employee takes the leave, as necessary, in full-day increments over a period of up to 3 years, extendable by mutual agreement with the employer. Additionally, the employee has the option to take the leave in half-days or as a period of part-time work.

Purpose: Providing care for an ailing child under the age of 16 within the employee’s guardianship

Amount of Leave: Typically, a maximum of three days annually, but extended to five days if the child is under the age of 1 or if the employee has three or more children under 16.

Conditions;

• The leave is unpaid.
• No minimum length of service is required for eligibility.

Purpose: Assisting a family member (child, grandchild, parent, grandparent, or sibling) or an individual residing in the same household facing a life-threatening illness or in the advanced/terminal phase of a serious and incurable illness

Amount of Leave: Unless specified differently in a collective agreement, this leave is granted for three months, with the option for renewal once.

Conditions;

• The leave is unpaid, but the employee may be eligible for benefits.
• No minimum qualifying length of service is required.
• The leave can be utilized as a single continuous period away from work. Upon employer agreement, the employee may choose to divide it into multiple shorter periods. Alternatively, it can be taken as a period of part-time work.

Purpose: Providing care for a family member or the employee’s cohabiting partner with a severe disability or loss of independence (also applicable for the care of certain other elderly or disabled individuals)

Amount of Leave: Unless specified otherwise in a collective agreement, this period is for three months, renewable, and can be granted for a maximum of one year throughout an employee’s career.

Conditions;

• The leave is unpaid by the employer. However, the employee may receive a daily caregiving allowance (AJPA) from social security funds.
• The leave may be taken as a single continuous period away from work. Alternatively, with the employer’s agreement, the employee may choose to divide it into several shorter periods or take it as a period of part-time work.

Purpose: Unspecified

Amount of Leave: This leave is approved for a duration ranging from six to 11 months, unless otherwise stipulated in a collective agreement.

Conditions;

• The leave is unpaid.
• A minimum of 36 months of service (subject to modification by a collective agreement) and a work experience of six years are necessary.
• The employer has the authority to reject or defer the sabbatical leave under certain circumstances. Following the completion of the leave, the employee is ineligible to take another sabbatical for a minimum period of six years.