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.