Employment Agreement Options in France

Types, seniority, noncompetes, and more.

Updated on December 20th, 2022

Can we add company-specific information to the employment agreement? Will Velocity Global review these updates?

The legal parties of the employment agreement are Velocity Global and the supported employee. Additionally, Velocity Global has a Master Services Agreement with our clients.

What are the types of employment agreements we can offer? (e.g., fixed-term, indefinite, project-based)

Per the French Labor Code, indefinite-term agreements are the most common.

Employers can also enter into fixed-term agreements and assignment agreements. For fixed-term agreements, employers must consider the following:

  • Fixed-term employment agreements require an exact start and end date with a maximum duration of 18 months
  • Fixed-term agreements can only be renewed a limited number of times (two times) for a maximum length of 18 months (renewals included)
  • After the 18-month maximum (or at any point when your supported employee's fixed-term agreement is due to expire), you can choose to switch your supported employee to an indefinite-term agreement

Can we recognize seniority in France?

Under Velocity Global’s Portage Salarial scheme, we can only recognize seniority if your supported employee was previously working directly under your company in a different country. Additionally, side agreements cannot be used to recognize seniority in France. 

Can we include benefits in the employment agreement?

Yes, you should, as benefits are required under our employment agreement. The agreement mentions that the supported employee is entitled to health and life insurance, as well as contributions to their pension plan.

Can we add variable compensation to the employment agreement? 

Yes, variable compensation can be added to or removed from the employment agreement. This will be done via an addendum that is still a contractual element but not included directly in the main employment agreement. You will need to provide a legally compliant variable compensation plan, which will be reviewed by Velocity Global and can only be shared with the supported employee by Velocity Global as the employer of record. The supported employee will have to sign both the addendum and the variable compensation plan.

For the fastest onboarding, we recommend that you wait to add the variable compensation at a later date (after the employment agreement is signed), which will help avoid delays. In this scenario, we ask that you have a conversation with the candidate as they may refuse to sign the employment agreement without having the variable remuneration plan in their hand.

We also need to receive your updated variable compensation plans at the end of each year or when they expire.