© - ATH all rights reserved - Edition 2024 21 2024 EMPLOYER’S GUIDE • With no precise term: in this case, the term of the contract will be linked to the achievement of the object of the contract. This type of fixed-term contract must stipulate a minimum term. Ask us for details about the maximum contract terms and conditions of renewal which vary depending on the cases where fixed-term contracts are used. Your collective agreement can also include specific provisions. EMPLOYEE RIGHTS UNDER A FIXED-TERM CONTRACT During his/her contract, an employee under a fixed-term contract has the same rights as the other company employees in terms of working hours, salary, sick pay, election of staff representatives, benefits and so on. An employee under a fixed-term contract, with at least 6 months’ service, may ask the employer to keep him/her informed about permanent job opportunities. TERMINATION OF FIXED-TERM CONTRACT The fixed-term contract cannot be terminated early except in the event of agreement between the parties, serious misconduct or force majeure or if the employee can provide proof that he/she has been hired under a permanent contract. Aside from these cases, early termination of the contract results in the following : • The employer is required to pay damages to the employee which are at least equal to the sums the employee would have received until the end of the contract, • The employee may be ordered to pay damages to the employer for the loss sustained by the company. Before signing a fixed-term contract, assess your staffing needs and whether it is beneficial for you to choose this type of contract. Since 1 September 2022, bonus- malus mechanism is implemented on the employer unemployment contribution aimed at encouraging long-term employment and penalizing a succession of short-term contracts in some business sectors. SUCCESSIVE FIXED-TERM CONTRACTS A succession of fixed-term contracts can only be entered into for the same job if there is a period of time between the 2 contracts, as indicated below (with some exceptions) : • A third of the contract term, including renewals, for contracts with a term of more than 14 days, • Half of the contract term, including renewals, for contracts with a term of less than 14 days. Special arrangements may be stipulated by an extended collective agreement. END OF FIXED-TERM CONTRACT The fixed-term contract ends automatically at the end of the term mentioned. If the contract continues beyond the term, it becomes permanent (CDI). At the end of the contract, the employee receives : • A short-term contract allowance of 10 % of the total gross salary paid during the fixed-term contract (aside from exceptional cases), • A sum in lieu of paid holidays, irrespective of the length of the contract. Ask us, the employer must put in place a specific procedure when he wants the employment relationship on a fixed-term contract (CDD) to continue on a permanent contract (CDI) under the same conditions of employment. In fact, if a jobseeker has twice in the previous 12 months refused an offer of a permanent contract under these conditions, he or she will not be entitled to unemployment benefit.
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