Fixed-term or open-ended ? In France, the choice between CDI and CDD is strictly regulated. Here’s what foreign employers need to know before signing.
When hiring in France for the first time, one of the first decisions foreign employers face is which type of employment contract to use. The two main options are the CDI (contrat à durée indéterminée) and the CDD (contrat à durée déterminée). The choice matters more than many
The CDI: the default contract in French law
The CDI is an open-ended employment contract with no fixed end date. French law treats it as the normal, default form of employment. There is no legal requirement to justify using a CDI, it is simply the standard.
For employers, a CDI provides stability and clarity. For employees, it provides job security and access to the full range of employment protections under French law. When in doubt about which contract to use, the CDI is always the safe choice.
The CDD: a temporary contract with strict rules
The CDD is a fixed-term contract, and unlike in many other countries, it cannot be used freely. French law strictly limits the situations in which a CDD is permitted. The main authorised cases include replacing an absent employee, a temporary and exceptional increase in activity, seasonal work, and specific sectors where fixed-term contracts are standard practice by collective agreement.
Outside of these cases, using a CDD is not simply inadvisable, it is legally non-compliant.
The risk of requalification
If an employee or a court determines that a CDD was used in circumstances that didn’t justify it, the contract can be requalified as a CDI. This means the employer is treated as if they had dismissed a permanent employee without cause. The financial consequences include compensation for unfair dismissal and indemnities calculated on the full length of the employment relationship.
Requalification claims are one of the most common issues we encounter with companies that have been hiring in France without specialist guidance.
Renewal rules and maximum duration
CDD contracts are also subject to strict rules on renewal and maximum duration. They can generally only be renewed a limited number of times, and the total duration including renewals is capped. Exceeding these limits, even unintentionally, can trigger requalification.
Which one should you use?
The answer depends on the actual nature of the role and the circumstances of the hire. If the need is genuinely temporary and falls within one of the permitted categories, a CDD may be appropriate. If the role is ongoing or the circumstances don’t clearly justify a CDD, a CDI is the right choice and the legally safer one.
The bottom line
The CDI vs CDD decision is not just a formality. Used correctly, both contract types serve legitimate purposes. Used incorrectly, a CDD can create significant financial and legal exposure. Getting this right from the start is far simpler than resolving a requalification claim later.
The right contract from day one is the foundation of a compliant employment relationship in France.
Article written by briogate.com – Your French HR and payroll specialist.