A fixed-term contract (contrat à durée déterminée, CDD) is an employment contract whose end date is set at the time of its conclusion. It derogates from the principle that the open-ended contract (contrat à durée indéterminée, CDI) is the normal and general form of the employment relationship. Accordingly, the use of fixed-term contracts is strictly regulated: a fixed-term contract may only be concluded for the performance of a specific and temporary task, in the cases exhaustively listed by statute. Any breach of these rules exposes the employer to reclassification of the fixed-term contract as an open-ended contract, with the attendant financial consequences.
1. The fixed-term contract: principles and prohibitions
1.1 – The open-ended contract as the normal form of the employment relationship
Article L. 1221-2 of the Labour Code establishes the fundamental principle: the open-ended employment contract is the normal and general form of the employment relationship. A fixed-term contract is an exception to this principle, permitted only in the cases provided for by statute.
1.2 – The prohibition on using a fixed-term contract to fill a permanent post on a lasting basis
A fixed-term contract may neither have as its object nor produce the effect of filling on a lasting basis a post linked to the normal and permanent activity of the company (Art. L. 1242-1 of the Labour Code). This prohibition is fundamental: it means that an employer cannot use a succession of fixed-term contracts to permanently occupy a post forming part of the company’s principal activity.
1.3 – Cases in which fixed-term contracts are formally prohibited
Even where a fixed-term contract would otherwise be permitted, it is prohibited in certain specific situations (Art. L. 1242-6 of the Labour Code):
- To replace a striking employee
- To carry out particularly hazardous work appearing on a list established by regulatory order
- Within 6 months following an economic dismissal, for the posts affected by that dismissal (unless the contract is a temporary agency assignment, or the fixed-term contract does not exceed 3 months)
2. Permitted grounds for concluding a fixed-term contract
2.1 – Replacing an absent employee
This is the most common ground. An employer may conclude a fixed-term contract to replace an employee whose contract of employment is suspended (Art. L. 1242-2, 1° of the Labour Code):
- Sick leave, maternity leave, paternity leave, parental leave
- Sabbatical leave or unpaid leave
- Temporary reduction to part-time working
- Any other case of suspension of the contract
A fixed-term contract may also be concluded to replace an employee whose post is temporarily vacant pending the arrival of their successor.
Important note
A replacement fixed-term contract must state the name and job title of the employee being replaced. Failure to do so exposes the contract to reclassification as an open-ended contract. Furthermore, an employee recruited on a fixed-term contract to replace an absent colleague must not be assigned to a different post from the one left vacant.
2.2 – Temporary increase in business activity
An employer may use a fixed-term contract where there is a temporary increase in the company’s business activity (Art. L. 1242-2, 2° of the Labour Code). This ground requires the additional activity to be genuine, temporary and distinct from the company’s normal and permanent activity. A structural and lasting increase in workload does not justify repeated use of fixed-term contracts.
2.3 – Seasonal employment
Seasonal employment covers tasks linked to the season or to cyclical variations in activity (Art. L. 1242-2, 3° of the Labour Code): agriculture, tourism, hospitality and catering. This ground allows repeated renewals across successive seasons without the employee being able to claim reclassification as an open-ended contract.
2.4 – Sectors where it is customary not to use open-ended contracts
In certain sectors known as “customary use” sectors, it is established practice not to use open-ended contracts for certain posts (Art. L. 1242-2, 3° of the Labour Code). These sectors are defined by regulatory decree or collective agreement: audiovisual production, live performance, education, hospitality and catering, removal services, information technology, leisure centres, etc. In these sectors, fixed-term contracts may succeed one another without limit of number, provided each contract has a genuine ground.
2.5 – Other permitted grounds
Statute also authorises fixed-term contracts in the following situations:
- Contracts concluded with young people during school or university holidays
- Employment integration contracts (contrats d’accompagnement dans l’emploi)
- Replacement of a business owner, a farm operator or a non-employed partner
- Recruitment of engineers and managers for the performance of a defined project, pursuant to a sectoral agreement (fixed-term contract for a defined purpose, CDD à objet défini)
- Pending permanent elimination of the post vacated by a departing employee (Art. L. 1242-2, 5°)
Key point: the fixed-term contract for a defined purpose
The fixed-term contract for a defined purpose (CDD à objet défini), introduced by the Act of 26 July 2005 and made permanent by the Labour Act of 2016, allows companies to conclude fixed-term contracts with engineers and managers for the performance of a specific project, without a fixed end date, but for a duration of between 18 months and 3 years. It terminates upon completion of the purpose for which it was concluded, subject to a notice period of 2 months.
3. Formal requirements for the fixed-term contract
3.1 – The requirement for a written contract
A fixed-term contract must be drawn up in writing and provided to the employee no later than 2 working days after the start of employment (Art. L. 1242-12 of the Labour Code). Failure to put the contract in writing results automatically in reclassification as an open-ended contract.
3.2 – Mandatory provisions
The contract must contain a number of provisions, the absence of which is sanctioned according to their nature (Art. L. 1242-12 and L. 1242-13 of the Labour Code):
- The precise ground for using a fixed-term contract (including, where applicable, the name and job title of the employee being replaced)
- The end date: a specific date or a triggering event (return of the absent employee)
- The minimum duration where the end date is uncertain
- The description of the post and the employee’s professional classification
- The remuneration and its component elements
- The name and address of the supplementary pension fund and provident scheme
- The duration of any probationary period
Important note: absence of the ground for the contract
Failure to state the precise ground for using a fixed-term contract results in automatic reclassification as an open-ended contract, without the employee needing to demonstrate any specific loss. The Court of Cassation is consistent on this point: the statement of the ground is an essential formal requirement whose absence triggers reclassification automatically.
3.3 – The probationary period in a fixed-term contract
The probationary period in a fixed-term contract is governed by statute (Art. L. 1242-10 of the Labour Code):
- 1 day per week of the contract’s intended duration, up to a maximum of 2 weeks for contracts of less than 6 months
- 1 month for contracts of more than 6 months
Where the fixed-term contract has no fixed end date, the probationary period is calculated by reference to the minimum duration stated in the contract.
4. Duration, renewal and succession of fixed-term contracts
4.1 – Maximum duration of the fixed-term contract
The total duration of a fixed-term contract, including renewals, may not exceed the following limits (Art. L. 1242-8 of the Labour Code):
| Ground for the contract | Maximum duration (including renewals) |
|---|---|
| Replacement of an absent employee | 18 months (uncertain end date permitted) |
| Temporary increase in business activity | 18 months |
| Seasonal employment | Duration of the season (no statutory maximum) |
| Customary use sector | No statutory maximum |
| Pending elimination of post | 24 months |
| Exceptional export order | 24 months |
| Fixed-term contract for a defined purpose (managers and engineers) | Between 18 months and 3 years |
4.2 – Renewal of the fixed-term contract
A fixed-term contract may be renewed twice, within the applicable maximum duration (Art. L. 1243-13 of the Labour Code). The renewal must be provided for in the original contract or be the subject of an amendment submitted to the employee before the current contract expires. An extended sectoral agreement may provide for different renewal conditions.
4.3 – The mandatory gap between successive fixed-term contracts
At the end of a fixed-term contract, the employer must observe a mandatory gap before concluding a new fixed-term contract or a temporary agency contract for the same post (Art. L. 1244-3 of the Labour Code). This gap is equal to:
- One third of the duration of the fixed-term contract (including renewals) where the contract lasted 14 days or more
- One half of the duration of the fixed-term contract where the contract lasted fewer than 14 days
This mandatory gap does not apply in several cases: replacement of an absent employee or one whose contract is suspended, seasonal employment, customary use employment, early termination at the employee’s initiative, or the employee’s refusal to renew.
4.4 – The end-of-contract payment
At the end of a fixed-term contract, save in certain cases, the employee is entitled to an end-of-contract payment equal to 10% of total gross remuneration paid during the contract (Art. L. 1243-8 of the Labour Code). This payment, sometimes referred to as a “precariousness premium” (prime de précarité), is designed to compensate for the inherent instability of fixed-term employment. It is not due where the employer offers the employee an open-ended contract at the end of the fixed-term contract and the employee refuses, nor for seasonal or customary use employment where the applicable collective agreement so provides.
5. Early termination of the fixed-term contract
5.1 – The general prohibition on early termination
Early termination of a fixed-term contract is in principle prohibited, save in the cases exhaustively provided for by statute (Art. L. 1243-1 of the Labour Code). An employer who terminates a fixed-term contract without justification is liable to pay the employee damages corresponding to the remuneration the employee would have received until the end of the contract.
5.2 – Permitted grounds for early termination
Early termination of a fixed-term contract is permitted in the following situations:
- Agreement of the parties: the employer and employee may agree by mutual consent to end the contract before its term
- Serious misconduct by the employee (faute grave): the employer may terminate the contract immediately without paying any indemnity
- Force majeure: an unforeseeable, irresistible and external event making it impossible to continue the contract
- Permanent incapacity certified by the occupational health physician: where redeployment is impossible
- Recruitment under an open-ended contract: the employee may terminate their fixed-term contract if they can demonstrate that they have been offered an open-ended contract elsewhere, subject to a notice period of 1 day per remaining week, up to a maximum of 2 weeks
Important note
Unjustified early termination by the employer exposes the employer to damages equivalent to the salaries that would have accrued until the end of the contract, plus the associated social security contributions. For the employee, unjustified early termination gives rise to damages of at least the remuneration due until the contractual end date.
6. Reclassification of the fixed-term contract as an open-ended contract
6.1 – Grounds for reclassification
Reclassification of a fixed-term contract as an open-ended contract may be ordered by the labour tribunal in the following cases (Art. L. 1245-1 of the Labour Code):
- Absence of a written contract or failure to provide it within the 2-working-day period
- Absence of the ground for the contract or insufficiently precise statement of the ground
- Reliance on a ground not provided for by statute
- Exceeding the applicable maximum duration
- Failure to observe the mandatory gap between successive fixed-term contracts
- Renewal beyond the permitted limit (more than twice)
- Fixed-term contract used to fill a permanent post on a lasting basis
- Failure to state the name of the employee being replaced in a replacement contract
6.2 – Consequences of reclassification
Where the court orders reclassification of a fixed-term contract as an open-ended contract, the employee is entitled to:
- A reclassification indemnity of no less than 1 month’s salary (Art. L. 1245-2 of the Labour Code)
- The termination payments applicable to an open-ended contract where the employment relationship has ended: statutory or contractual severance pay, payment in lieu of notice
- Damages for dismissal without real and serious cause, where the dismissal is unjustified
- Salary arrears corresponding to periods between successive fixed-term contracts during which no remuneration was paid
6.3 – Time limit for bringing a reclassification claim
A claim for reclassification of a fixed-term contract as an open-ended contract is subject to a 2-year limitation period running from the end of the fixed-term contract in question (Art. L. 1471-1 of the Labour Code). Once this period has expired, the claim is inadmissible, even where the fixed-term contract was irregular.
Key point
Reclassification as an open-ended contract is an automatic consequence of any breach of the statutory rules governing fixed-term contracts: the court has no discretion as to whether to order reclassification once the irregularity is established. It does, however, retain full discretion as to the amount of damages to be awarded above the minimum indemnity of 1 month’s salary.
7. Frequently asked questions about fixed-term contracts
No. A fixed-term contract may neither have as its object nor produce the effect of filling on a lasting basis a post linked to the company’s normal and permanent activity. Using successive fixed-term contracts for the same post on a repeated and continuous basis exposes the employer to reclassification as an open-ended contract, with payment of a reclassification indemnity of at least 1 month’s salary, severance pay and damages. Labour tribunal judges examine the reality of the stated ground for each contract and impose severe sanctions for abuse.
Yes, in principle. At the end of a fixed-term contract, you are entitled to an end-of-contract payment (known as the prime de précarité) equal to 10% of total gross remuneration received during the contract. However, this payment is not due in certain cases: where the employer offers you an open-ended contract at the end of the fixed-term contract and you refuse; where you are employed under a seasonal or customary use contract in a sector where the applicable collective agreement so provides; or where the contract is terminated early for serious misconduct.
Yes, this is one of the rare situations in which you may terminate your fixed-term contract before its end date without exposing yourself to liability for damages. You must be able to demonstrate that you have been offered an open-ended contract and must observe a notice period of 1 day per remaining week up to the contractual end date, subject to a maximum of 2 weeks. It is advisable to give notice in writing (by registered letter) and to enclose evidence of your open-ended contract offer.
Failure to state the ground in a fixed-term contract is a substantive irregularity that automatically triggers reclassification as an open-ended contract, without your needing to demonstrate any specific loss. You may bring a claim before the labour tribunal within 2 years of the end of the contract to obtain reclassification, an indemnity of at least 1 month’s salary, and, where the employment relationship has ended, severance pay. A consultation with an employment lawyer is recommended to assess your rights.
Yes, by agreement of the parties. The employer and employee may agree at any time to convert the fixed-term contract into an open-ended contract, without waiting for it to expire. This conversion is effected by an amendment to the existing contract or by the conclusion of a new open-ended contract. The employee’s length of service is then calculated from the start of the original fixed-term contract. It should be noted that where the employer offers an open-ended contract at the end of the fixed-term contract and the employee refuses, the employee loses their entitlement to the end-of-contract payment.
8. Your employment lawyer for fixed-term contract matters
Fixed-term contracts are technically demanding instruments: the permitted grounds are exhaustive, the formal requirements are strict, and the consequences of any irregularity can be severe for both employer and employee. A poorly drafted fixed-term contract, an insufficiently characterised ground, or failure to observe the mandatory gap between contracts can all lead to costly reclassification. For employees, understanding their rights is essential to avoid being kept in a precarious employment relationship that should properly be made permanent.
As specialists in employment law, Patchwork Avocats assists companies in drafting and securing their fixed-term contracts, and defends employees whose rights have not been respected in the context of a fixed-term contract.