Key Objectives Behind the Recent Updates

The recent amendments did not emerge in a vacuum but were a response to urgent market requirements. Their philosophy can be summarized in several key points:

• Enhancing Job Security: Reinforcing that the permanent employment contract (CDI – Contrat à Durée Indéterminée) is the general rule, and regulating the cases where fixed-term contracts (CDD – Contrat à Durée Déterminée) are allowed to prevent precarious employment.
• Protecting Vulnerable Groups: Introducing new provisions to ensure greater protection for working women, people with disabilities, and young people at the beginning of their professional careers.
• Improving Working Conditions: More precise regulation of working hours, rest periods, leave, and occupational health and safety to ensure a decent work environment that preserves the dignity of the worker.
• Adapting to New Work Patterns: Beginning to establish a regulatory framework for non-traditional work patterns such as remote work and part-time work, which have become a tangible reality.
• Streamlining Dispute Resolution: Simplifying and making the procedures for resolving individual and collective labor disputes more efficient to reduce litigation and foster social dialogue.
• Encouraging Formal Employment: Combating undeclared work by providing incentives for formalization and imposing stricter penalties on employers who operate outside the legal framework.

1. The Employment Contract (Le Contrat de Travail): The Rule and the Exception

The employment contract is the fundamental document that defines the nature of the relationship between you and your employer. The new amendments focused heavily on rebalancing the power dynamics in this aspect.

The Permanent Contract (CDI) as the General Principle

The law strongly reaffirmed that the permanent employment contract (CDI) is the normal and original form of the employment relationship. This means that any new hiring should be in the form of a CDI unless there is a clear and explicit legal justification for using a fixed-term contract.

This principle aims to combat what is known as “precarity” or job insecurity, providing the worker with greater psychological and financial stability, which facilitates planning for their future (such as obtaining a bank loan).

Conditions and Regulations for Fixed-Term Contracts (CDD)

Employers can no longer resort to fixed-term contracts (CDD) arbitrarily. The law precisely defined the situations where it is permitted, for example:

• Completion of a specific and temporary task (construction project, consulting mission).
• Replacing a permanent employee who is temporarily absent (sick leave, maternity leave).
• Meeting a temporary and unforeseen increase in workload (exceptional orders).
• Seasonal activities linked to specific times of the year.

Important Note: A CDD cannot be renewed for the same position indefinitely. The law sets limits on the number of renewals and the total duration, after which the contract automatically converts into a CDI. The maximum total duration, including renewals, is typically 24 months. Furthermore, a mandatory break period is required between two successive CDDs for the same position and the same employee.

Written Form Mandatory: The CDD must be established in writing at the latest when the employee starts work. It must explicitly mention the precise reason for using a fixed-term contract. Failure to provide a written contract can lead to the CDD being reclassified as a CDI.

2. The Probation Period (Période d’Essai): Clear Duration and Conditions

The probation period is a crucial phase for both parties. Recent updates have established a stricter framework to prevent its exploitation:

• Maximum Duration: A maximum duration for the probation period has been set, which cannot be exceeded, and it varies according to the employee’s professional category (executive, technician, manual worker). For example:
  • Manual workers: Maximum 6 months.
  • Technicians and supervisors: Maximum 9 months.
  • Executives and senior managers: Maximum 12 months.
• Written Documentation: The probation period and its duration must be clearly stated in the employment contract. Any verbal probation period is considered null and void.
• Equal Rights: During the probation period, the employee enjoys the same rights and obligations as permanent employees, including salary and social security coverage.
• Termination: During the probation period, both the employer and the employee can terminate the contract without notice and without having to provide a reason, unless otherwise stipulated in the collective agreement. However, this must be done in good faith and not abusively.
• Renewal: The probation period can only be renewed once by mutual written agreement of the parties, and the total duration (initial period + renewal) must not exceed the legal maximum for the category.

3. Working Hours, Overtime, and Rest: Don’t Compromise Your Rights

The law strictly regulates your time at work to ensure against exhaustion and protect your physical and mental health. Understanding these points will help you claim your rights.

Standard Working Hours

The legal working week is generally set at 40 hours. The actual distribution of these hours over the days of the week can be defined by the company’s internal regulations or the collective agreement. Any work beyond this limit is considered overtime.

Calculation of Overtime (Les Heures Supplémentaires)

Any work performed outside the legal working hours is considered overtime and must be compensated financially with an increase of at least 50% of the normal hourly wage for the first 8 hours of overtime per week. For overtime beyond that, the increase is at least 100%. The new law emphasized the necessity of obtaining prior written consent or a direct order from the supervisor before performing these hours to ensure they can be proven if needed.

Annual Overtime Quota: The law sets an annual cap on the number of overtime hours an employee can perform, protecting them from systematic overwork.

Weekly Rest and Annual Leave (Repos Hebdomadaire et Congés Annuels)

Every employee has the right to a full paid weekly rest day (usually Friday). As for annual leave (congé annuel), it is a sacred right. The law guarantees you 30 calendar days of paid leave for each full year of actual service (or 2.5 days per month worked). The employer cannot refuse to grant you your annual leave or force you to waive it in exchange for financial compensation, except in the case of termination of the employment relationship. The timing of the leave is set by mutual agreement, and the employee is entitled to an advance on their salary before going on leave.

Public Holidays and Special Leaves

Employees are entitled to paid leave on official public holidays. The law also provides for paid special leaves for specific events such as marriage (e.g., 6 days), birth of a child (e.g., 3 days), or death of a close relative.

4. Termination of Employment: A Precise Understanding of Procedures

This is one of the most sensitive points. The new amendments aim to make the termination process more transparent and fair, and to limit arbitrary dismissal.

Resignation (La Démission)

You have the right to submit your resignation at any time, but it must be done in writing. You are obliged to respect the notice period (Préavis) stipulated in your contract or the collective agreement. This is the period during which you continue to work after submitting your resignation to allow the employer to find a replacement. During this period, you are entitled to paid leave and your full salary. Failure to respect the notice period without a valid reason may result in the loss of certain entitlements.

Dismissal for Disciplinary Reasons (Licenciement Disciplinaire)

You cannot be dismissed for disciplinary reasons except after committing a serious fault (faute grave) or gross misconduct (faute lourde), and after following strict procedures. These procedures include notifying you in writing of the alleged misconduct, giving you the opportunity to defend yourself (orally and in writing), and often involve presenting the case to the works council or an internal disciplinary committee before making a final decision. The concept of “real and serious cause” (cause réelle et sérieuse) is central; the employer must provide solid and verifiable proof of the fault.

Dismissal for Economic Reasons (Licenciement Économique)

If a company faces genuine economic difficulties, it may resort to workforce reduction. However, this measure is heavily regulated and requires prior authorization from the labor inspectorate after demonstrating the existence of serious economic reasons. The employer must also follow a specific procedure, including informing and consulting staff representatives, and establishing a social plan (plan social) to mitigate the effects of the dismissal, which may include redeployment efforts, priority for rehiring if the situation improves, or specific compensation.

Termination by Mutual Consent (Rupture Conventionnelle)

Introduced to provide a more amicable way to end the employment contract, this procedure allows the employer and the employee to agree on the termination terms, including a specific termination indemnity. This agreement must be validated by the labor authorities to ensure the employee’s rights are respected.

Actionable Steps You Can Implement

1. Read and Understand Your Employment Contract Thoroughly: Do not sign anything you do not understand. Your contract is the constitution of your professional relationship. Ensure it clearly specifies the type of contract (CDI/CDD), job title, salary, probation period duration, and any special conditions. Request a copy and keep it safe.
2. Document Everything in Writing: In the world of work, “verbal agreements have no value.” For any agreement with your manager (regarding overtime, change in tasks, promotion promises), try to get it in writing via an official email. Keep copies of your pay slips (Fiche de paie) and work certificates.
3. Know Your Rights in Case of Dispute: Before approaching any authority, know your rights. In case of a dismissal you believe is unfair, you have a legal time limit to challenge the decision before the competent authorities. Consult experts or research reliable sources.
4. Do Not Hesitate to Contact the Labor Inspectorate: The Labor Inspectorate (L’inspection du travail) is a government body whose role is to ensure the application of labor law and protect workers. You can approach them to file a complaint, request advice, or report any violations.
5. Join a Trade Union: Being a member of a trade union can provide collective strength, legal support, and a stronger voice when negotiating with your employer or defending your rights.
6. Keep a Personal Work Journal: Informally note down important dates, tasks, instructions, and any incidents. This can serve as valuable personal evidence if needed.
7. Understand Your Pay Slip: Learn to read your pay slip correctly. Verify that your base salary, overtime, bonuses, and all deductions (social security, taxes) are accurately reflected.

Comparative Table: Key Changes Between the Old and New Law (Illustrative Example)

Warning: Common Mistakes Every Employer Must Avoid

Ignorance of the law is no excuse. Avoid these fatal errors that could cost your company its reputation and significant amounts of money:

• Hiring with Verbal Contracts: The biggest mistake you can make. A verbal contract makes its terms difficult to prove, and in case of a dispute, the judgment often favors the employee. Always, without exception, use written contracts.
• Misusing CDD Contracts: Hiring a person for a permanent, structural position with a continuously renewed CDD is a clear violation of the law. This exposes you to the risk of the contract being converted to a CDI by court order, along with the payment of damages.
• Ignoring Formal Procedures in Dismissal: Even if an employee commits a serious fault, dismissing them without following the legal procedures (prior notice, hearing, right to defend oneself) can turn a justified dismissal into an unfair one, leading to reinstatement or heavy compensation.
• Incorrect Calculation of Compensation and Leave: Ensure that your system for calculating wages, overtime, and annual leave compensation is fully compliant with the law. Errors on the pay slip are physical evidence against you.
• Neglecting the Internal Regulations (Règlement Intérieur): Companies beyond a certain size are required to have internal regulations that specify general rules of conduct, disciplinary measures, and safety procedures. This document must be deposited with the labor inspectorate.
• Failure to Issue a Work Certificate: Not providing a work certificate (Certificat de travail) at the end of the contract is a legal offense and can result in penalties.

If you are looking for more advice and guidance on human resources management and recruitment, you can always visit the JobsDZ Blog, which offers specialized and useful content.