Permanent employment contract: what's behind this model of contract so coveted by employees?

75% of employment contracts in France are permanent. This is good news for both employees and companies. A permanent contract can be signed in any circumstances, offering stability and security for both parties.

As an employer, are you looking to take on an employee on a permanent contract, but are you still wondering what this employment contract really hides among the others, or how to draw up an employment contract for an indefinite period?

Discover all the features of employment contracts, all their secrets and a downloadable template in this article!

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What is a permanent employment contract?

Definition

An open-ended employment contract (CDI) is the normal and most widespread form of employment relationship between an employer and an employee. Unlike other contracts, open-ended contracts are long-term in nature and do not specify a termination date.

☝️ It may be terminated at any time:

• at the unilateral decision of the employer: dismissal for personal or economic reasons,
• by unilateral decision of the employee: resignation or retirement,
• for reasons external to the parties: force majeure,
• by agreement of both parties: conventional termination.

💡 Please note: unless otherwise stipulated in an agreement, an employment contract does not have to be in writing, but may be verbal.

The different parties

In the case of an employment contract for an indefinite period, there is obviously the employer and the employee, who enter into a mutual commitment through this document.

👉 The employer may be :

• a natural person : for example, a sole trader for a self-employed business,
• a legal entity : SARL, association, etc. In this case, it is up to the person whose duties involve recruiting employees to sign the contract.

As far as the employee is concerned, anyone can sign a permanent contract as long as they have full legal capacity. Restrictions apply:

• adults under guardianship must have their contract signed by their guardian,
• young people under the age of 18 must have the authorisation of their legal representative.

💡 In France, it is forbidden to employ young people under the age of 16 except in special cases, including modelling or the film industry, for example.

What does a permanent contract contain?

Mandatory clauses

The content of a permanent employment contract is fairly open-ended, unless the collective agreement specifies mandatory clauses.

The contract must be drawn up in French and most often contain the following clauses:

• identity and contact details of both parties
• the employee's job title
• working hours
• place of work,
• remuneration,
• paid holidays,
• trial period,
• notice periods in the event of termination of the contract.

Optional clauses

Certain clauses in permanent employment contracts may be optional, depending on your company's needs:

• non-competition clause : this prohibits the employee, after termination of the contract, from performing equivalent duties with a competitor or on his own account. The clause must meet certain criteria,
• geographical mobility clause: this gives the employer the power to change the employee's place of work without having to amend the employment contract. The mobility clause must meet certain conditions.
• financial responsibility clause : the employee's obligation to compensate the employer in the event of financial loss due to his or her work. This clause is rarely used,
• exclusivity clause: this prohibits an employee from simultaneously carrying out another paid professional activity, whether competing or not, on his own behalf or on behalf of another company,
• employment guarantee clause : this prevents the employer from terminating the employment contract during a given period. If the employer dismisses the employee, it must pay him or her all the wages remaining until the end of the period,
• training waiver clause : this requires an employee who has received training from his employer not to resign during a given period. The aim is to prevent a company from taking on an employee, offering him training and then having him leave his post once the training has been completed. To be valid, the clause must meet certain conditions.

Sample permanent employment contract for free download

Are you looking for a ready-to-use permanent employment contract template? We have a free template for you to download now.

This document in Word format is ready to be completed with all your information and that of your future employee!

💡 Once completed, the document can be converted into PDF format.

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Contract amendments and suspensions

Amendments to employment contracts

A permanent employment contract is drawn up for a long period, which is why both the employee and the employer often wish to amend certain clauses of the contract.

If the change simply concerns working conditions, no amendment is required.

A rider is drawn up and signed by both parties when an essential element of the employment contract is affected. It is necessary in the following situations:

• a change in remuneration
• a change in the nature of the employee's job,
• changing the place of work (unless a mobility clause is included in the contract),
• change in working hours (when the working hours have been specified in the employment contract).

👉 To be more concrete: a rider will need to be drawn up when you want to increase your employee's salary, for example.

💡 Regarding the form: the rider is a new contract that simply modifies the elements impacted by what the parties want to change. The rest of the employment contract will remain as it is.

The different types of leave

Certain situations may temporarily prevent employees from carrying out their work. Absences and different types of leave result in the suspension of the employment contract.

These include

• paid leave: 2 and a half days per month,
• maternity leave: the duration varies according to the number of unborn or dependent children,
• paternity leave: 25 days,
• sabbatical leave: between 6 and 11 months,
• leave for family reasons: birth, marriage, death, sick child, the duration depends on the purpose of the leave,

There are also other less common types of leave, such as parental leave for education, reclassification leave, long-term sick leave, etc.

💡 In principle, employees do not receive any pay during periods of leave. However, in certain cases, they may receive compensation, particularly in the case of maternity leave, paid leave, etc.

This article is already finished!

We hope that the permanent employment contract now holds no secrets for you!