1. Permanent Contract (CDI)

 A permanent contract is the standard form of employment. A permanent contract may be verbal or written.

Drawing up the employment contract 

A permanent contract does not necessarily have to be in writing; however, it is preferable to draw it up in writing as this protects you, because in the event of a dispute, any doubt is always resolved in the employee’s favour and all forms of evidence are accepted.

Termination of the contract 

A permanent contract may be terminated at any time at the initiative of either party.

In the case of the employee, termination of the contract or resignation is subject to giving notice of resignation and observing the relevant notice period. The employee is not obliged to give reasons for their decision.

 As regards termination by the employer, or dismissal, certain procedural and substantive conditions must be met:

Form: Notification of the notice period to the employee concerned, compliance with the duration of the notice period, and referral to the Labour Inspectorate for an opinion on the proposed dismissal.

Substance: the grounds given to justify the dismissal must be well-founded. Firstly, they must be accurate; that is to say, the facts must have actually occurred (they must be true). They must also be sufficient: certain facts may have occurred but do not justify dismissal, given that other disciplinary measures are available prior to dismissal (a written warning, a reprimand, suspension).

Mutually agreed termination or negotiated departure 

Apart from cases of dismissal and resignation, there are other forms of termination such as termination by mutual agreement and negotiated departure.

In these cases, both parties freely agree on the terms of the termination and the payment of compensation, which often provide more favourable terms for employees than a standard, lawful dismissal.

New development 

In practice, employers often provide for a probationary period prior to a permanent contract, but do not set this out in writing. However, a probationary period cannot be implied (just as, indeed, dismissal or resignation cannot be implied). It must be set out in writing and its duration must be specified in the contract.

Key terminology

Non-competition clause: An employee may be bound by their contract not to engage in any activity similar to that of the company during and after the end of the contract, for a specific period and within a clearly defined sphere. Please note that if they fail to comply with this clause, they may be dismissed without notice or compensation.