A practical guide to French labour law for international companies.
French labour law has a reputation for being complex, rigid and full of exceptions. In reality, the system is structured and predictable once you understand a few core principles. For international companies, the issue is rarely “we cannot comply”; it is “we do not want to build a full French HR and payroll infrastructure for one or two hires.”
That is exactly why an Employer of Record (EOR) in France such as Freeteam is useful. It allows you to hire employees in France compliantly while keeping your organisation lean and focused on growth.
This article provides a simplified, practical guide to French labour law, what you need to know as an international employer, what typically creates risk, and how to hire in France without getting stuck in administration.
In France, the legal system cares less about labels and more about reality.
If a contractor is managed like an employee, with a fixed schedule, exclusivity and tight supervision, French authorities can reclassify the relationship as employment. That can trigger back payments, penalties and disputes.
Simplified rule: if the role is long-term and integrated, treat it as employment (direct or EOR). If it is truly project-based and autonomous, keep it as independent contracting, carefully structured.
The CDI (open-ended contract) is the standard in France. It is not unusual or risky, it is simply the normal baseline.
The CDD (fixed-term contract) is allowed only in specific cases, such as:
International companies sometimes use fixed-term contracts as a flexible hiring tool. In France, flexibility exists, but CDD usage is controlled, and incorrect use can be requalified into a CDI.
A compliant French employment contract should clearly reflect:
French labour law is particularly sensitive to situations where the contract says one thing but day-to-day practice shows another.
Employment law, payroll and HR compliance in France leave little room for improvisation. Get the right structure from day one.
France is known for the 35-hour reference week, but what matters is compliance with:
Simplified takeaway: you can run high-performance teams in France, but you need clear working time expectations, realistic meeting schedules across time zones, and a model that remains compatible with French rules.
French employees have strong statutory rights, including:
These protections are not extra perks. They are part of the legal structure. For international companies, it is best to plan for them upfront rather than discovering them mid-year.
Payroll in France is not simply paying a salary. It involves:
This is why foreign companies often do not want to manage payroll directly for a small team. Payroll is where compliance is executed month after month.
Using a France payroll provider or an Employer of Record in France is less about convenience and more about ensuring payroll remains consistently compliant without building internal payroll expertise immediately.
If your HQ is used to at-will employment, France will feel different.
Termination in France is:
There are different pathways, including dismissal for personal reasons, economic reasons, and mutual termination (rupture conventionnelle). All require correct steps, timelines and documentation.
Simplified takeaway: if you hire in France, assume termination is not instant. It must be planned and handled properly. That is another reason international companies like EOR: local HR discipline is embedded in the model.
Freeteam’s EOR model helps international companies by translating French labour law into a predictable, operational structure.
With Freeteam as your Employer of Record in France:
You get compliant French employment without opening a local entity too early and without becoming a French labour law expert internally.
French labour law is detailed, but it is not a barrier if you approach it with the right model. For international companies, the most effective way to operate in France is usually to:
Once your market traction and team size justify it, you can consider opening a French entity. Until then, EOR gives you a clear, compliant and scalable way to hire in France, so you can focus on growth rather than administration.
An Employer of Record lets you hire in France without setting up locally.
More detailsUnderstand the key legal requirements for hiring in France, from employment contracts and labour law to contractor status.
More detailsUnderstand HR compliance in France, from contracts and payroll to GDPR and termination, and how an employer of record helps you hire compliantly.
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