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Comprehensive Overview of France's Employment Policies: The Entry Rules for HR of Chinese Companies Expanding Overseas

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    This article focuses solely on one thing: what are the specific employment rules that HR must adhere to afteran individual starts working in France?


    Part 1: Why France is "Challenging, but Must be Understood First"?


    · Strong Labor Law Supervision and Detailed Procedural Requirements: Many risks are not about "money" but about the "high risks brought by procedural non-compliance."

    · Collective Bargaining Agreements/Industry Conventions (Convention collective) have a very significant impact on salary, working hours, vacation, severance pay, etc., and are often more "strict" or "favorable" than the law.

    · Incorrect contract drafting (especially for Fixed-Term Contracts, probation periods, working hours/overtime, remote work) can lead to "reclassification," drastically increasing costs and dispute resolution difficulty.


    Part 2: The "Four Sources" of French Employment Rules


    French employment rules are typically understood as a four-layered system, applied in a "top-down, strong-to-weak" order for verification:

    1. Laws and Regulations: Primarily the Labor Code (Code du travail), associated decrees, judicial precedents, and official interpretations.

    2. Industry/Collective Agreements: The applicable Convention collective(many clauses directly impact probation periods, work schedules, bonus structures, severance pay, etc.).

    3. Enterprise-Level Agreements/Internal Rules: Company agreements (accord d'entreprise), internal rules/regulations (règlement intérieur), etc.

    4. Individual Contracts and Company Policies: Employment contracts (Permanent/Fixed-Term) and specific policies on salary, position, performance, reimbursements, remote work, etc. For HR practice: In case of conflict, the rule from the higher level usually prevails; in comparable situations, the clause "more favorable to the employee" is more likely to be upheld.


    Part 3: How to Choose and Draft Contracts?


    1. Permanent (CDI) vs. Fixed-Term (CDD) Contracts:

    o France's "default is the indefinite-term contract (CDI)."

    o CDD can only be used in legally permitted situations (e.g., replacing an absent employee, temporary increase in business, seasonal work) and must state the reason and duration in writing.

    o Practical risk: If the CDD's justification/drafting is non-compliant, it risks being deemed as "should have been a CDI" (reclassification).


    2. Probation Period (période d'essai): It can be set, but must "adhere to the upper limit + be written into the contract."

    o For CDI: Legal maximums are typically 2 months for workers/employees, 3 months for technicians/supervisors, 4 months for management (cadres).

    o Renewal: Usually only once, and must meet three conditions: allowed by collective agreement, stipulated in the contract, and written mutual consent during the initial probation. Maximum total duration after renewal is typically 4/6/8 months.

    o For CDD: Typically calculated as "1 day per week," with a maximum of 2 weeks for contracts ≤6 months, 1 month for contracts >6 months (shorter if stipulated by collective agreement).

    o Statutory "notice period" (délai de prévenance) applies for termination during probation; non-compliance can easily lead to disputes.


    3. Pre-Employment Obligations: DPAE (Pre-Employment Declaration) + Social Security/Payroll System Setup

    o Employer must complete the statutory declaration DPAE (Déclaration préalable à l'embauche) before the employee's start date.

    o Ensure the payroll system can generate compliant pay slips (bulletin de paie) and complete monthly DSN (Déclaration Sociale Nominative) declarations.

    o If the company provides a "supplementary health insurance/group corporate health plan" (mutuelle d'entreprise), it must meet minimum coverage and employer contribution ratio requirements.


    4. Remote/Hybrid Work (télétravail): Advised to "put it clearly in writing," not just rely on verbal agreements.

    o France allows remote work arrangements via collective agreement or a company's "remote work charter" (charte).

    o In the absence of an agreement or charter, an arrangement can also be reached with the employee "by any means" (practically, written form is advised for proof).

    o Remote employees should, in principle, have the same rights and benefits as office-based employees (e.g., meal vouchers), to avoid discrimination disputes.


    Part 4: Working Hours, Overtime, and Leave


    1. Working Hours Benchmark: 35 hours/week

    o The statutory "working time benchmark" is typically 35 hours/week. Hours exceeding this benchmark usually count as overtime (heures supplémentaires).

    o Statutory maximums: There are daily/weekly maximum working hour limits; generally, a maximum of 10 hours/day, 48 hours/week, along with rules like 12-week average limits (specifics depend on the applicable collective agreement/company agreement).


    2. Overtime and Time Off in Lieu: Don't just look at the "overtime pay multiplier," also consider "caps + approval + recording."

    o Overtime typically involves: overtime pay (majoration) or equivalent compensatory time off (repos compensateur), and annual overtime quotas (contingent annuel).

    o Practical recommendation: Clearly define the overtime approval process, recording methods (time system/emails/work orders), and ensure consistency with payroll settlement rules.


    3. Sick Leave and Paid Annual Leave: Paid annual leave is a "rigid cost."

    o Paid annual leave (congés payés): Typically accrues at 2.5 working days per month, totaling 30 working days (approx. 5 weeks) per year.

    o Public holidays (jours fériés), sick leave (arrêt maladie), maternity/paternity leave are high-frequency policy items, often with more favorable standards from collective agreements.


    4. Sick Leave: Social Security Daily Allowance + Employer Top-up

    o Social Security (CPAM) typically provides a daily sickness allowance (IJSS) after conditions are met, with waiting periods.

    o Whether the employer must "maintain/wage supplement" (maintien de salaire) depends on the Labor Code and collective agreements (common conditions include a certain length of service).


    Part 5: Remuneration, Social Security, and Pay Slips


    · Minimum Wage (SMIC): May be adjusted annually; salary setting and adjustments must ensure compliance with the current standard.

    · Pay Slip (bulletin de paie): Must be issued to the employee as required, containing legally mandated information.

    · Social Security and Declarations: Monthly DSN declarations to ensure consistent configuration of employer/employee social security contributions, supplementary health insurance (mutuelle), etc. Caution: Inconsistencies between "contract terms/pay slips/declarations" are a common point of vulnerability in tax/social security audits or employee disputes.


    Part 6: Dismissal and Termination


    1. Common Termination Paths: Resignation, Mutual Agreement Termination (rupture conventionnelle), Dismissal.

    o Resignation: Note the applicable collective agreement's stipulations on notice period, handover, etc.

    o Mutual Agreement Termination (rupture conventionnelle): Very common in France; the process has statutory withdrawal periods and administrative approval/filing requirements.

    o Dismissal: Requires a "real and serious cause" (cause réelle et sérieuse) and strict adherence to the procedure: preliminary meeting → meeting → sending dismissal letter, with specific timelines.


    2. Economic Redundancy and Collective Redundancy: Involve "thresholds + employee representative procedures."

    o Economic redundancies involve stricter justification and procedures, typically requiring an information/consultation process with employee representative bodies (CSE).

    o Reaching a certain scale may trigger more complex mechanisms like PSE (Plan de sauvegarde de l'emploi) (seek advice from local lawyers/consultants early).


    3. Statutory Severance Pay: Don't forget "collective agreements may provide higher compensation."

    o Statutory severance pay (indemnité légale de licenciement) applies if conditions like length of service are met. Common formula: 1/4 monthly salary per year for the first 10 years, 1/3 monthly salary per year thereafter.

    o If the collective agreement or contract stipulates higher compensation, the more favorable standard usually applies.


    Part 7: Employee Representatives and Internal Rules (CSE / règlement intérieur)


    · CSE (Comité social et économique): Must be established upon reaching statutory thresholds; matters like layoffs, major changes in working conditions usually require an information/consultation process.

    · Internal Regulations (règlement intérieur): Typically required after reaching a certain company size, used to formally implement rules on disciplinary action, health and safety, anti-harassment, etc.


    Part 8: "High-Frequency Pitfall Checklist" for French Employment


    · CDD used for non-compliant reasons/not clearly stated → Risk of reclassification as CDI.

    · Probation period exceeding legal/collective agreement limits, or renewal failing the "three conditions" → Probation termination treated as a formal dismissal.

    · Missing working hours records: Inability to prove overtime/rest time → Difficult to prove in disputes.

    · Remote work policy only verbal: Expenses, working hours, equipment responsibility, meal voucher/subsidy differences → Disputes can easily arise.

    · Dismissal procedure non-compliant: Meeting/timelines/dismissal letter wording → Risk of losing a case even with "correct facts" due to procedure.

    · Inconsistencies between pay slips, DSN declarations, and social security contributions: Increases risk of both audits and employee disputes.


    Three Implementation Recommendations for HR Expanding Overseas

    1. First, identify the "applicable industry collective agreement": Treat it as France's version of an "invisible labor law"; contracts and salary structures must align with it.

    2. Turn "procedures" into SOPs: Onboarding (DPAE/contract/payroll) – Employment (hours/remote/leave) – Termination (mutual agreement/dismissal) each should have templates and timelines.

    3. Prioritize data consistency: Contract terms, pay slips, DSN declarations, expense/subsidy policies must be mutually explainable to avoid audits and disputes.



    References
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