The Contrat à Durée Déterminée (CDD), or fixed-term contract, is a temporary employment arrangement in France governed by Articles L1242-1 et seq. of the Code du travail (Labour Code). French law only permits a CDD where a specific, listed reason exists, such as replacing an absent employee, handling a temporary increase in activity, or fulfilling a seasonal role. Using a CDD to fill a permanent need is prohibited and can lead to reclassification as a CDI.
A CDD may be renewed up to twice, with a total maximum duration that varies depending on the justifying reason, typically 18 months. At the end of a CDD, unless it is converted into a CDI, the employer must pay a precarité allowance (indemnité de fin de contrat) equal to 10 per cent of the total gross remuneration earned during the contract. This compensates the employee for the insecurity of fixed-term status.
For international employers seconding or locally hiring staff in France on a project basis, the CDD is a common instrument but carries significant compliance risk if used incorrectly. Contract terms must be formalised in writing and given to the employee within two working days of the start date.