Understand French employment law, contracts, payroll and termination rules
If you are expanding to France, you will hear the same phrase again and again: “France is a great market, but employment is complex.” That is true, but it is not a reason to postpone hiring. It is simply a reason to approach France with the right structure.
French employment law is detailed, protective, and closely linked to payroll. The practical question is not “Can we understand everything?” but “How do we hire in a compliant way without slowing down our growth?”
This article provides a clear overview of French employment law for international companies: the rules you need to understand, the mistakes to avoid, and how an Employer of Record (EOR) in France such as Freeteam helps you stay compliant without opening a local entity too early.
French employment rules are built on three layers that interact constantly.
The Labour Code sets national rules on:
These rules are not guidelines. They are enforceable obligations, and they apply even if your HQ is in the US, the UK, or elsewhere.
On top of the Labour Code, most employees in France are covered by a collective bargaining agreement (“convention collective”) linked to the sector.
CBAs can define:
This is one of the reasons French employment law can feel unfamiliar: you are not just following one national set of rules, but also industry-specific standards.
In France, what matters is not just what the contract says, but what happens in practice.
If the contract says “remote role” but the employee is required to be on-site daily, that creates risk. If an agreement claims someone is a contractor but the company manages them like an employee, that creates even bigger risk.
French labour law is highly focused on the real nature of the working relationship.
Two contract types dominate:
CDI (Contrat à durée indéterminée): permanent, open-ended contract and the default in France.
CDD (Contrat à durée déterminée): fixed-term contract, allowed only in specific scenarios such as temporary replacement or workload peaks.
Many international companies assume they can use fixed-term contracts freely. In France, the CDD is regulated, and misuse can lead to requalification into a CDI with financial consequences.
What a compliant employment contract should include
A French employment contract typically covers:
The contract must match the reality of the role, especially in hybrid and remote work setups.
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 compliance is really about:
For international teams, alignment matters: expectations around availability, meetings and workload must remain compatible with French rules.
Employees in France benefit from:
These rules can surprise international companies, but they also build trust and stability when handled correctly.
If employment ends, the process matters:
In France, dismissals are legal events that must be documented and justified, not simple operational decisions.
France also allows termination by agreement through a rupture conventionnelle.
It is common and practical, but it still follows a regulated process and timeline.
This is where a local employer-of-record partner adds value: knowing which route is appropriate and how to execute it correctly.
In France, employment law is deeply connected to payroll.
Employers must:
It is not enough to pay the net salary. Payslips and declarations are core compliance elements.
This is why many international companies use:
Using Freeteam as an Employer of Record in France means:
This model is particularly useful when hiring your first roles in France and you want to move fast without opening a local entity too early.
French employment law is protective and detailed, especially around contracts, working time, leave and termination. But it is not a blocker. It is a framework that needs to be respected.
If you are expanding to France, the smartest approach is usually to:
This lets you focus on growth and market execution while French employment law is handled in a predictable, compliant way behind the scenes.
