Fixed-Term Contracts

The fixed-term contract (or CDD) is for a duration specified in advance. The standard work contract in France is the contract without term (CDI), and the CDD is regarded as an exception. The CDD is limited to specific cases determined by law.

The fixed-term contract is liable for the same contributions as a contract without a fixed term. In general, the following applies to fixed-term contracts:

• An extra training contribution is paid by the employer.

  The contribution is called TAX FORMCDD. A generation control triggers this contribution, checking that the contract is CDD.

• An end of contract allowance is paid to the payee.

  The payee receives an allowance at the end of a fixed-term contract equivalent to 10 percent of the gross earning during the duration of the contract. The allowance is not paid if the contract ends prematurely.

• Special rules for paid vacation apply to payees on fixed-term contracts.

  Usually a payee has to work for 28 days before entitlement, but this qualification period is waived for fixed-term contracts.

A special fixed-term contract exists for students. The only difference between a student contract and a regular CDD contract is that there is no allowance paid at the end of the contract.

Use the same contract type for current CDDs as for fixed-term contracts for students. To prevent the payment of the end-of-contract allowance, you must create a contract type value for this kind of contract. Then update the bracket IND BR DT SPEC by indicating a different allowance entitlements for this kind of contract. In this case, the variable IND VR DP IFC populated by this bracket must be set to zero to avoid the triggering of the end-of-contract allowance.

Some special CDD contracts are defined for seasonal activity, and some custom contracts are defined for special industries, such as show business. As with fixed-term contracts for students, there is no end-of-contract allowance paid.

The triggering of the end-of-contract allowance should be prevented. HR provides as sample data the value Seasonal Contract in the Contract Type table. But you must update the bracket IND BR DT SPEC to manage this case.