Employment law: definitions, key concepts and practical insights
Employment law encompasses the body of rules governing the relationship between an employer and an individual who performs work under a relationship of subordination (an employee). It covers recruitment, the performance of the employment contract, disciplinary matters, remuneration and termination, as well as the collective framework that structures working life within the company (industry-wide collective bargaining agreements, company-level agreements and employee representative bodies, including the CSE – Social and Economic Committee).
In practice, employment law also frequently extends to “grey area” situations (corporate officers, self-employed contractors and regulated professionals), where the legal characterisation of the relationship, remuneration, termination or liability is at stake. The objective is twofold: to secure decision-making and to prevent risk (social security audits and assessments, employment tribunal litigation and, where applicable, criminal employment law exposure).
Definition: what is employment law for?
Employment law is designed to structure an inherently imbalanced relationship (the subordination link) by setting out protective rules and reciprocal obligations. It imposes procedural requirements (formalities, time limits and written documentation) and gives a central role to evidence. Many disputes arise not from a broad legal principle, but from a practical detail: a poorly drafted document, a missed procedural step or a timetable controlled by the other party.
For companies: managing contracts, discipline and employment risk
For French and international companies, employment law is a key tool for safeguarding operations and managing risk: hiring, organising work, imposing sanctions, negotiating, restructuring—while limiting exposure to avoidable disputes. The challenge is both legal and operational: procedures, evidence, timelines, internal communications and compliance.
Common matters include:
- Employment contracts (permanent and fixed-term contracts, part-time arrangements, annualised working time and “forfait-jours” agreements) and sensitive clauses (mobility, non-compete, confidentiality).
- Employee relations and collective bargaining: the CSE, negotiations, compliance with the applicable collective bargaining agreement, and the management of collective situations (industrial action, psychosocial risks, whistleblowing and alerts).
- Disciplinary processes: warnings, suspensions, dismissals (personal grounds or economic redundancies), and the securing of each step and supporting documentation.
- Dispute resolution: employment tribunal proceedings, individual and collective disputes, urgent applications (“référé”), defence strategy, settlement agreements and enforcement.
Objective: robust HR management, legally defensible decisions and reduced litigation exposure.
Executives and senior managers: status, liability and exit negotiations
Executives and senior managers are often exposed to high-stakes situations: mobility, performance targets, variable remuneration, changes in governance, internal investigations and dismissal procedures—against a backdrop of complex statuses (employee, senior executive status, corporate officer, dual status).
Common matters include:
- Employment contracts and career progression: fixed/variable pay, bonuses, stock options/management packages, non-compete clauses, “forfait-jours” arrangements and remote working.
- Corporate office: distinguishing corporate officers from employees, conditions for dual status, removal from office, governance, and the related financial and tax consequences (depending on the situation).
- Termination and exit negotiations: mutual termination agreements, settlement agreements, secure exits, negotiation strategy, confidentiality and reputation management.
- Civil and criminal liability: exposure in cases involving workplace accidents, harassment, discrimination, breaches of health and safety obligations and delegated authority.
Objective: protect your position, clarify your status and secure your exit, taking into account both business and personal considerations.
Employees: rights, protection and dispute resolution
Employment law protects employees throughout their employment journey: hiring, performance of the contract, working conditions, discipline and termination. Here again, success often depends on method and timing: written records, evidence, chronology and strict compliance with procedures.
Common matters include:
- Contract terms and working conditions: classification, pay, overtime, “forfait-jours”, changes to the contract, remote working and professional expenses.
- Workplace harm and infringements of rights: moral/sexual harassment, discrimination, unjustified disciplinary measures, internal investigations and whistleblower protection (where applicable).
- Termination scenarios: dismissal, mutual termination, constructive dismissal/termination at the employee’s initiative (where appropriate), compensation and end-of-employment documentation.
- Employment tribunal proceedings: case preparation, strategy, quantification of claims, negotiation, hearings and enforcement.
Objective: regain control, secure your steps and achieve an effective outcome (settlement, compensation or judgment).
Self-employed professionals and regulated practitioners: securing contracts and status
Even outside employment, certain situations require an employment-law or quasi-employment analysis: economic dependence, imposed organisational constraints, integration into a service, exclusivity, etc. The key question is often legal classification: an independent services relationship or a reclassifiable employment relationship?
Common matters include:
- Selecting the appropriate status and structuring the working relationship.
- Drafting and reviewing contracts with principals: scope of work, liability, intellectual property, confidentiality, non-solicitation and exit mechanisms.
- Pre-litigation and litigation: unpaid invoices, abrupt termination, disagreements regarding the assignment and disputes arising from contract performance.
- Reclassification risk and audits/inspections: assessment of criteria, documentation and a compliance and defence strategy.
Objective: strong contractual relationships, increased predictability and reduced risk (employment, social security and judicial).
Conclusion
In our Employment Law Glossary, you will find articles dedicated to each of these topics, with clear definitions, practical risk points and useful guidance. If you need to make a decision or manage a dispute, Patchwork advises and represents clients in both advisory and contentious matters, for companies, executives/senior managers, employees and independent professionals.
Discover all our Employment law services.