55. Fixed-term contract: Termination before the end of the contract

You have the right to terminate a fixed-term contract (CDD) before it expires, but the circumstances in which this is permitted are limited.

1. The contract may be terminated by mutual agreement with the employee.
2. If this is not possible, disciplinary termination remains an option. However, please note that a fixed-term contract may only be terminated in the event of serious misconduct.
3. Early termination of a fixed-term contract is also possible in cases of force majeure.

• There is another situation in which an employer may consider early termination of a fixed-term employment contract: in the event of incapacity.
• An employee on a fixed-term contract also has the option to terminate their contract if they can prove they have entered into a permanent contract.

Serious misconduct: To be considered serious, the misconduct must be of such a nature that it makes it impossible for the employee to remain with the company, even during the notice period.

There is no list of offences classified as serious. The seriousness must be assessed on a case-by-case basis. The same behaviour may be regarded, depending on the circumstances, the individuals involved, etc., as a minor offence or a serious offence.

It is up to you to assess whether the misconduct committed is serious and whether the employee must leave the company. If this is the case, you must act swiftly.

In the event of a dispute, it is the courts that will assess the seriousness of the misconduct based on the circumstances.

To terminate a fixed-term contract on the grounds of serious misconduct, you must follow the disciplinary procedure (summons, interview, etc.).

If the misconduct is not deemed serious, you will have to pay the employee damages for early termination of the contract outside the permitted grounds for termination (an amount at least equal to the remuneration they would have received until the end of the contract, plus the end-of-contract indemnity).

Severance pay is not payable in the event of early termination of a fixed-term contract on grounds of serious misconduct.

Can an employee on a fixed-term contract refuse a change to their working conditions?

Fixed-term contracts are reserved for specific, temporary and one-off needs.

The specific reason for using a fixed-term contract must be stated in the contract.

Cases of early termination are also strictly regulated by the Labour Code. Early termination is possible in the event of:

1. Agreement between the parties (employee and employer);
2. Serious misconduct;
3. Force majeure, i.e. an unforeseeable, unavoidable and insurmountable event preventing the parties from fulfilling their obligations;
4. Medically certified incapacity of the employee.
5. The employee may also terminate the fixed-term contract if they can prove they have been offered a permanent contract (CDI).

Note: Apart from these situations, early termination of a fixed-term contract gives rise to a claim for damages.

If an employee on a permanent contract refuses to alter their working conditions – for example, to change their place of work within the same geographical area – the courts may consider that such a refusal constitutes a genuine and serious ground for dismissal. For an employee on a permanent contract, termination of the employment contract may be considered.

But what about an employee on a fixed-term contract? Termination may be considered by mutual agreement. However, in the absence of such an agreement, do not terminate the contract on the grounds of serious misconduct.

To be considered serious misconduct, the offence must be of such a nature that it makes it impossible for the employee to remain with the company, even during the notice period.

The employer cannot terminate a current fixed-term contract if the employee refuses to accept changes to their working conditions and also refuses termination by mutual agreement.