Employment law

Grounds for using a fixed-term contract

11 September 2026

A fixed-term contract is not a contract you choose, it is a contract you justify. The Labour Code sets the opposite general rule: any contract that does not fall within a specific category is an open-ended contract. The indefinite contract is the principle; the fixed-term contract is the exception, and it is never presumed.

In practice, this means an employer cannot conclude a fixed-term contract simply because a short engagement is preferable. The hire must be attached to a specific, temporary situation provided for by law, and that ground must be written into the contract. Labour Code, Articles L.19 and L.20 (French).

1. Which situations allow a fixed-term contract?

The Code lists the permitted grounds. Each corresponds to a different reality, and therefore to different drafting:

GroundWhat characterises itWhat the contract must show
Temporary replacementAn identified employee is under legal suspension of their contractThe name and qualification of the replaced person
Temporary increase in activityAn exceptional, datable rise in workloadThe reality and the passing nature of the increase
Seasonal workAn activity that returns with seasons or campaignsThe link to the season concerned
Very short engagementHourly or daily work not exceeding one dayThe one-off nature of the task
Customary sectorsJobs where using an indefinite contract is not customaryThe established practice in the sector, under the conditions set by law

To these is added the contract concluded for the completion of defined works, whose term is the completion itself. Labour Code, Article L.20 (French).

2. Where is the boundary with the open-ended contract?

It is simple to state and easy to cross without noticing: a fixed-term contract may neither have the purpose nor the effect of permanently filling a job linked to the normal, ongoing activity of the company.

Note the words "nor the effect". The employer's intention is not enough to save the contract. A fixed-term contract concluded in good faith for a genuinely temporary need becomes irregular if, in fact, it ends up occupying a permanent position. This is how most disputed situations arise: the need was real at the outset, but it settled in without the contract ever being revisited. Labour Code, Article L.22 (French).

3. Are there situations where it is prohibited outright?

Yes, and the most important one is often overlooked because it concerns not the candidate but the position.

Following a redundancy on economic grounds, the company may not use a fixed-term contract on the eliminated positions for six months. The only exception is a non-renewable contract of no more than three months.

The logic is clear: a job is not eliminated for economic reasons only to be refilled immediately in a more precarious form. Before any drafting, the question is therefore not only "why this hire?" but "what has happened to this position over the past six months?". Labour Code, Article L.23 (French).

4. Can one contract cover several replacements?

No. A replacement contract corresponds to one replaced person, and only one.

This rule follows directly from the obligation to define the ground precisely: the contract must state the name and professional qualification of the replaced employee. A single contract concluded to cover the absences of several employees, whether at the same time or one after another, cannot satisfy that requirement, since it identifies no one in particular.

In practice, this means drawing up as many contracts as there are replaced employees, even where the replacement is the same person and the absences follow on from each other. A contract that does not precisely define its ground loses its term and becomes an open-ended contract. Decree No. 2022-0125/PT-RM, revised Article D.20-1 (French).

5. What is the risk if the ground is not valid?

The contract does not become void: it changes nature. It is deemed concluded for an indefinite duration, with everything that entails.

What the employer thought it hadWhat it actually has
A contract that ends by itself on a known dateA contract that ends only through dismissal
An end of relationship with no procedureA termination subject to grounds, procedure and notice
An exit cost limited to the 2.5% paymentThe compensation and damages attached to ending an open-ended contract

It is this shift, more than any fine, that constitutes the real cost of a poorly justified hire. And it applies equally where the relationship continues beyond the legal limits on duration or renewals: the conversion is then automatic, by operation of law. Labour Code, Articles L.20 and L.21 (French).

6. How to check a ground before signing?

Four questions, in this order:

  • Is the need temporary? If you cannot say when it will end, it is probably a permanent need.
  • Does it fall within one of the permitted grounds? A temporary need matching no listed ground is not enough.
  • Is the position free of any prohibition? In particular the six months following a redundancy.
  • Can the ground actually be written down? If it cannot be stated in one precise, verifiable sentence, it will not hold.

Key takeaways

The use of a fixed-term contract is judged on its ground, not its length. A short contract with a weak ground is irregular; a long contract with a proper ground is not.

The ruleWhat it implies
The indefinite contract is the principle, the fixed term the exceptionThe ground must be justified, never assumed
The ground must be precise and writtenA generic ground offers the employer no protection
Neither the purpose nor the effect of filling a permanent jobA need that has become lasting calls for an indefinite contract, not a renewal
One replacement, one contractAs many contracts as there are replaced employees
Six-month prohibition after a redundancyThe check concerns the position, not the candidate