CDI vs CDD in France: What Employers Need to Know

Choosing between a CDI and a CDD in France is not simply a question of whether an employer wants a permanent or temporary employee.

Under French employment law, the CDI — Contrat à Durée Indéterminée — is the normal and general form of employment relationship. A CDD — Contrat à Durée Déterminée — may only be used for a specific and temporary task in circumstances permitted by law. A CDD cannot be used to fill permanently a position connected with the normal and ongoing activity of the business.

For international employers, this distinction matters. Using a CDD simply to reduce commitment, extend a trial period, or avoid the rules associated with terminating a CDI can create substantial compliance risk.

Understanding CDI vs CDD in France therefore starts with the reason for the hire, not the employer’s preferred contract length.

What Is a CDI in France?

A CDI, or Contrat à Durée Indéterminée, is an employment contract with no predetermined end date. It is the standard form of employment in France and should normally be used when the position corresponds to an ongoing need within the company.

A CDI can be full-time or part-time. Although a full-time CDI is not always legally required to be in writing, a written employment contract is standard practice and is strongly advisable, particularly for international employers. Part-time CDI arrangements must be documented in writing, and applicable collective bargaining agreements may impose additional contractual requirements. Written employment contracts are generally prepared in French.

A CDI does not mean that the employment relationship can never end. It may be terminated through resignation, dismissal, retirement, mutual termination through rupture conventionnelle, or other legally recognised mechanisms. The relevant procedural and substantive requirements still need to be respected.

When Is a CDI Usually Appropriate?

A CDI is generally the appropriate structure when an employer is recruiting someone to perform a role that forms part of the company’s normal, continuing operations.

For example, an international technology company hiring a permanent French sales manager to develop the French market would normally be looking at a CDI rather than a succession of temporary CDD contracts.

The fact that a company is entering France for the first time does not itself make the position temporary.

What Is a CDD in France?

A CDD, or Contrat à Durée Déterminée, is a fixed-term employment contract.

Unlike a CDI, employers cannot generally choose a CDD simply because they want employment to end after a specified number of months. French law restricts CDDs to defined temporary situations.

The French Labour Code states that a CDD must relate to a specific and temporary task and must not have the purpose or effect of permanently filling a role associated with the company’s normal and permanent activity.

Typical lawful grounds can include replacing an absent employee, responding to a temporary increase in business activity, seasonal employment and certain roles in sectors where fixed-term contracts are customarily used, subject to the applicable legal and collective bargaining rules.

This makes the justification for the CDD critical.

An employer should be able to explain why the employment need is genuinely temporary before deciding to issue the contract.

CDI vs CDD in France: Key Differences

The fundamental distinction is therefore not simply permanent vs temporary. It is whether the employer has a legally valid reason to depart from the CDI, which French law treats as the standard employment relationship.

When Can an Employer Use a CDD in France?

A CDD should be linked to a legally recognised temporary need.

One common example is replacing an employee who is absent or whose employment contract is temporarily suspended. Another is managing a genuinely temporary increase in business activity. Seasonal employment and certain jobs that are by their nature temporary may also qualify under the applicable rules.

The business reason matters because the CDD must identify its precise legal basis.

For an international employer, the following distinction is useful.

Appropriate scenario: a French employee takes maternity or another qualifying leave and the employer hires someone temporarily to cover that employee’s duties.

Riskier scenario: a company needs a permanent account manager but uses consecutive CDD contracts because it is not yet certain whether it wants to retain the employee long term.

The second scenario can raise reclassification risk because a CDD cannot be used to permanently occupy a position connected with the company’s normal and ongoing activity.

Does a CDD Have to Be in Writing?

Yes.

A French CDD must be established in writing and state the precise reason for using the fixed-term arrangement. The contract must also contain mandatory information relating to matters such as the term or minimum duration, role, remuneration and, where relevant, renewal conditions. French law requires the contract to be transmitted to the employee no later than two working days after hiring.

This is much stricter than the position for a full-time CDI, which may in some circumstances exist without a formal written contract.

For international employers, however, relying on an oral CDI is rarely sensible. A written French employment contract provides much greater clarity around salary, duties, working time, probation, benefits, notice and the applicable convention collective.

How Long Can a CDD Last in France?

There is no single duration that applies to every CDD.

An applicable extended branch agreement may determine the maximum duration. Where no such provision applies, the general statutory maximum is normally 18 months, including renewals. Specific circumstances can produce different limits: the statutory framework provides for a nine-month limit in certain cases and 24 months in certain others.

Employers should therefore avoid applying the “18-month rule” automatically.

Before issuing the contract, they should check:

the reason for using the CDD, the applicable collective bargaining agreement, the maximum duration permitted for that situation, the renewal rules and whether any special statutory exception applies.

Where the applicable branch agreement does not provide otherwise, a CDD may generally be renewed twice, provided the total duration remains within the applicable maximum. The renewal conditions should be included in the contract or agreed through an amendment before the original term expires.

Do CDD Employees Have Fewer Rights Than CDI Employees?

A CDD should not be treated as a lower-status form of employment.

French law generally extends the legal, collective and customary rules applicable to CDI employees to CDD employees, except where rules specifically concern termination of the employment contract. A CDD employee’s remuneration also cannot be lower than that of an equivalent CDI employee in the same company, after the probationary period, where the employees have equivalent qualifications and perform the same functions.

This means employers should not use CDD status as a mechanism to reduce normal employment conditions.

Working-time rules, workplace protections and many employee benefits continue to apply.

What Is the CDD End-of-Contract Indemnity?

An additional cost that international employers sometimes overlook is the indemnité de fin de contrat, commonly referred to as a prime de précarité.

Where a qualifying CDD ends without continuing as a CDI, the employee is generally entitled to an end-of-contract indemnity equal to 10% of the total gross remuneration paid during the CDD. French law provides exceptions, and certain collective arrangements may reduce the rate to 6% where qualifying training-related benefits are provided.

This means comparing CDI and CDD costs should not be limited to monthly salary.

For example, if an employee receives €40,000 in total gross remuneration during a qualifying CDD, a 10% end-of-contract indemnity would represent an additional €4,000, before considering other employment costs.

Whether the indemnity applies must be assessed according to the circumstances of the contract.

Can an Employer Terminate a CDD Before Its End Date?

This is another important difference between a CDI and a CDD.

A CDD does not give an employer complete flexibility simply because it is temporary. On the contrary, early termination is tightly regulated.

Outside the probationary period and subject to specific exceptions, a CDD may generally be terminated early by mutual agreement, in cases of serious misconduct, force majeure or medically established incapacity. An employee may also terminate a CDD early when able to demonstrate that they have obtained a CDI, subject to applicable notice requirements.

An employer that unlawfully ends a CDD before its contractual term can face damages at least equal to the remuneration the employee would have received through the scheduled end of the contract.

This is why a CDD should not be viewed as an easier-to-terminate alternative to a CDI.

In some situations, it can actually give the employer less flexibility during the agreed contract period.

What Happens When a CDD Continues After Its End Date?

If the employment relationship continues after the CDD expires, the contract becomes a CDI under the Labour Code. The employee retains the seniority acquired during the CDD, and the CDD period is taken into account in relation to any probationary period associated with the subsequent CDI.

Employers therefore need to manage contract end dates and conversion decisions carefully.

If the business need has become permanent, transitioning the employee to a CDI will often be the appropriate structure rather than attempting to continue temporary contracts indefinitely.

Risk of CDD Reclassification as a CDI

One of the biggest risks associated with a CDD in France is requalification, where the employment relationship is legally treated as a CDI because the requirements governing fixed-term employment were not respected.

This risk may arise, for example, where the CDD is used outside permitted circumstances, fails to state the required legal reason, exceeds applicable duration or renewal limits, or otherwise breaches relevant statutory or collective bargaining requirements.

Where the Conseil de prud’hommes grants an employee’s request to reclassify the CDD as a CDI, the employee is entitled to an indemnity that cannot be less than one month’s salary, without prejudice to other consequences resulting from the reclassification and the rules governing termination of a CDI.

For employers, the real risk is therefore greater than an administrative error in the contract.

Incorrect classification can change the legal nature of the employment relationship.

CDI vs CDD: Which Contract Should an Employer Choose?

The decision should begin with one question:

Is the position itself permanent, or is there a genuinely temporary business reason for the employment?

If the company needs the role indefinitely as part of its normal operations, CDI will normally be the appropriate starting point.

If the company can identify a legally recognised temporary reason — such as replacing an absent employee or responding to a qualifying temporary increase in activity — a CDD may be appropriate, provided all contractual and collective bargaining requirements are satisfied.

The employer should not start with:

“Which contract creates less risk for us?”

It should start with:

“What is the actual business reason for this employment relationship?”

That distinction is central to compliant hiring in France.

Practical Example: Hiring a Sales Manager in France

Consider a US company entering the French market and hiring a sales manager.

The company intends the employee to develop accounts, generate revenue and manage the French market for the foreseeable future.

Although the company may initially want to “test the market for 12 months,” the role itself appears connected with an ongoing business need. Simply limiting the employment contract to 12 months would not by itself create a lawful basis for using a CDD.

A CDI may therefore be the more appropriate employment structure.

Now consider a different situation.

The company already employs a French sales manager who will be absent temporarily, and another employee is hired specifically to provide cover during that absence. A properly structured CDD may be available because the employment need is genuinely temporary and connected to replacing an absent employee.

The difference lies in the reason for the employment, not simply the desired contract duration.

Common CDI and CDD Mistakes International Employers Make

One of the most common mistakes is treating a French CDD like a generic international fixed-term contract.

International employers may assume that specifying a start date and end date is enough. In France, it is not.

Another common mistake is using CDD contracts as an extended probation mechanism. If the underlying position is permanent, a temporary contract should not be used merely because the employer wants additional time before making a long-term commitment.

Companies also need to check the applicable convention collective. Collective bargaining agreements can affect contract terms, classifications, remuneration and other employment conditions, and may also influence some CDD duration and renewal rules.

Finally, employers should calculate the complete employment cost. A CDD may carry an end-of-contract indemnity and other costs that make a seemingly “temporary” arrangement less financially advantageous than expected.

Expert Tip for International Employers

Before issuing a CDD in France, document the exact reason why the position is temporary.

Then test that reason against the French Labour Code and the applicable collective bargaining agreement.

If the explanation is essentially “we need the employee permanently but do not want to commit to a CDI yet,” that should be treated as a warning sign rather than a justification for a CDD.

For companies without a French legal entity, an Employer of Record in France can manage the local employment structure, contract preparation, payroll, benefits and ongoing employment compliance while the international company manages the employee’s day-to-day responsibilities.

CDI vs CDD in France: Frequently Asked Questions

What is the main difference between a CDI and CDD in France?

A CDI is an indefinite employment contract and is the normal form of employment relationship in France. A CDD is a fixed-term contract that can only be used for legally recognised temporary purposes.

Is CDI better than CDD for employers?

Not necessarily. They serve different legal purposes. A CDI is normally appropriate for an ongoing position, while a CDD may be appropriate for a genuine temporary employment need. Employers should choose based on the nature and legal basis of the role rather than perceived convenience.

Can an employer use a CDD to test an employee before offering a CDI?

A CDD should not be used solely as an extended trial period for a permanent position. French law requires a valid temporary reason for using a CDD. A CDI can itself contain a probationary period where legally permitted and properly agreed.

What is the maximum duration of a CDD in France?

The applicable branch agreement may establish the maximum duration. In the absence of an applicable provision, the general statutory maximum is usually 18 months including renewals, although statutory exceptions provide different limits for certain situations.

How many times can a CDD be renewed?

An applicable branch agreement may determine the number of renewals. Where it does not, the statutory default generally permits two renewals, subject to the maximum permitted total duration.

Does a CDD employee receive the same salary as a CDI employee?

A CDD employee’s remuneration cannot be lower than the remuneration of an equivalent CDI employee in the same company, after the probationary period, where qualifications and functions are equivalent.

Does an employee receive additional compensation when a CDD ends?

In qualifying cases, a CDD employee receives an end-of-contract indemnity generally equal to 10% of total gross remuneration. Exceptions apply, and certain collective arrangements can provide for a lower 6% rate subject to statutory conditions.

Can a CDD automatically become a CDI?

Yes. If the employment relationship continues after the contractual end of the CDD, it becomes a CDI. A CDD may also be judicially reclassified as a CDI where relevant legal requirements governing fixed-term contracts have not been respected.

Can a foreign company hire an employee in France on a CDI?

A foreign company can employ workers in France, but it must ensure that the employment structure, payroll, social contributions, registrations and other employer obligations comply with French requirements. Companies that do not want to establish their own French entity may consider an Employer of Record structure, depending on their circumstances.

Conclusion

The difference between CDI and CDD in France is more significant than contract duration.

The CDI is the normal form of French employment relationship and is designed for positions with an ongoing business need. The CDD is an exception intended for defined temporary circumstances and is subject to stricter rules concerning justification, documentation, duration, renewal and early termination.

For international employers, the safest approach is to determine the genuine nature of the role before selecting the employment contract.

Using a CDD where the underlying need is actually permanent can create reclassification, financial and termination risks. Using the right structure from the beginning makes hiring easier to manage and reduces unnecessary employment-law exposure.

Need to hire employees in France without establishing your own local entity?

Brain Source International supports international companies with employment contracts, payroll, HR administration and Employer of Record services in France.

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