Types of Employment Contracts

Choosing the right contract type is your first major decision when hiring. Each has specific use cases and implications:

CDI (Contrat à Durée Indéterminée) - Permanent Contract

The CDI is the gold standard of French employment contracts and should be your default choice for core team members.

Key Features: - No end date - Full employee protections - Probation period (période d'essai): - 2 months for non-executives (renewable once) - 3 months for technicians and supervisors (renewable once) - 4 months for executives (renewable once) - Can be full-time or part-time

Advantages for Startups: - Attracts top talent seeking stability - No renewal hassles - Builds team cohesion - Required for many immigration processes

Considerations: - Termination requires valid cause and procedure - Higher employer commitment - Full social charges from day one

CDD (Contrat à Durée Déterminée) - Fixed-Term Contract

CDDs are temporary contracts for specific situations. French law strictly regulates their use to prevent abuse.

Valid Reasons for CDD: - Temporary replacement of absent employee - Seasonal work - Temporary increase in activity - Specific project with defined end

Key Restrictions: - Maximum 18 months (including renewals) - Can only be renewed twice - Must specify end date or triggering event - Cannot be used for permanent company needs

CDD Premium: Employees receive a 10% bonus (prime de précarité) at contract end, making CDDs more expensive than they appear.

Best For: Maternity cover, specific projects, testing market demand before committing to permanent hires.

Internship Agreements (Convention de Stage)

Internships are excellent for bringing in fresh talent at lower cost, but they're heavily regulated to prevent exploitation.

Requirements: - Must be part of educational curriculum - Mandatory agreement between company, school, and student - Maximum 6 months per academic year - Mandatory compensation for internships over 2 months (€4.35/hour minimum in 2024) - Cannot replace permanent positions

Benefits for Startups: - Lower cost talent pipeline - Reduced social charges - "Try before you hire" opportunity - Access to emerging talent

Best Practices: - Provide meaningful work and mentorship - Use internships as extended recruitment - Convert top performers to permanent roles

Freelance and Contractor Relationships

While not employment contracts, working with freelancers is common in the startup world. However, be careful of "hidden employment" (salariat déguisé).

Red Flags for Hidden Employment: - Exclusive relationship - Fixed working hours - Direct supervision - Using company email/tools - No other clients

Safe Practices: - Clear project-based contracts - Allow freelancers to work for others - Focus on deliverables, not hours - Avoid day-to-day management