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

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

As an employer, are you looking to hire an employee on a permanent contract? But are you still wondering what this type of employment contract is really all about, or how to draw up a permanent employment contract?

Discover all the features of the employment contract, all its 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, an open-ended contract is long-term in nature, and therefore does not specify a termination date.

☝️ It can be terminated at any time:

• by 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 a collective bargaining agreement, an employment contract does not have to be in writing, but may be verbal.

The different parties

In the case of an open-ended employment contract, we obviously find the employer and the employee, who are mutually committed through this document.

👉 The employer can be :

• a natural person : for example, a sole trader for an auto-entreprise,
• 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 an open-ended 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 18 must have the authorization of their legal representative.

💡 In France, it is forbidden to employ young people under the age of 16, except in special cases such as modeling or the film industry.

What does a CDI contain?

Mandatory clauses

The content of a CDI employment contract is fairly open-ended, unless the collective bargaining agreement stipulates otherwise.

The contract must be drawn up in French, and usually contains the following clauses:

• identity and contact details of both parties
• the employee's position,
• duration of work,
• place of work,
• remuneration,
• paid vacations,
• trial period,
• notice periods in the event of breach of contract.

Optional clauses

Certain clauses in a permanent employment contract 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: 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 is obliged to compensate the employer in the event of financial loss arising from his or her work. This clause is rarely used,
• exclusivity clause: prohibits an employee from simultaneously carrying out another paid professional activity, whether competing or not, for himself or for another company,
• employment guarantee clause : prevents the employer from terminating the employment contract during a given period. If the employer dismisses the employee, he must pay him all remaining wages 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. Its purpose is to prevent a company from hiring an employee, offering him or her training and then having him or her leave once the training is over. To be valid, the clause must meet certain conditions.

Free CDI contract template download

Looking for a ready-to-use permanent employment contract template? Here's a free template you can download right 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 to PDF format.

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Contract modifications and suspensions

Amendment to the employment contract

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

When it's simply a question of modifying 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:

• modification of remuneration,
• change in the nature of the employee's job,
• change of workplace (unless a mobility clause is included in the contract),
• modification of working hours (when the schedule has been specified in the employment contract).

👉 To be more concrete: a rider will need to be drawn up when you wish 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 an employee from performing his or her job. Absences and various types of leave lead to suspension of the employment contract.

These include

• paid leave: 2 and a half days per month,
• maternity leave: 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, duration depends on the purpose of the leave,

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

💡 In principle, the employee receives no remuneration 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 CDI employment contract no longer holds any secrets for you!