According to Article L1243-1, a fixed-term contract may be terminated before its expiry date for various reasons. This can be done :
- by mutual agreement between employer and employee,
- at the employee's request,
- for serious misconduct,
- in the event of force majeure,
- due to the employee's unfitness for work.
Any early termination of a fixed-term contract for a reason other than the latter is considered unlawful.
Joint agreement between employer and employee
The employee on a fixed-term contract and the employer may agree to terminate the contract between them. This is known as amicable termination of a fixed-term contract. To do this, it is necessary to draw up and sign a CDD termination agreement.
Employees who terminate their contracts amicably are entitled to the "indemnité de précarité" paid at the end of any fixed-term contract. At the very least, it must be one tenth of the total gross salary of the fixed-term contract.
At the employee's request
If an employee on a fixed-term contract is offered a permanent contract with another company, he or she can request early termination. To do so, they must submit their request in writing. This letter must be accompanied by proof of permanent employment. You can also attach a promise of employment to your request to terminate your contract. In this case, the employee is not entitled to the precariousness bonus at the end of the fixed-term contract.
Serious misconduct on the part of the employee
If the employer is guilty of serious misconduct, the employee can initiate legal proceedings to terminate the contract. To do this, the employee must apply to the industrial tribunal (Conseil de prud'hommes). If the judges recognize the misconduct as serious, the employee will receive compensation. This is at least equal to the sum of the remuneration that the employee should receive until the end of the fixed-term contract. For example, failure to pay a worker's salary is a serious misconduct recognized by law, entitling him to early termination.
When it is the employee who is guilty of serious misconduct, the manager can first send him a letter inviting him to an interview. After explaining the reasons for the decision to dismiss, the manager can then send the employee a letter of termination. However, a month must elapse after the interview before the termination decision is sent.
An employee dismissed for serious misconduct is not entitled to severance pay. However, they are entitled to vacation pay.
Employee's occupational unfitness
When an employee's health prevents him or her from carrying out his or her job, it is possible toanticipate the end of a fixed-term contract. In this case, for the contract to be legally terminated, the occupational physician must confirm the employee's unfitness. In addition, an employee on a fixed-term contract is dismissed for this reason when it is impossible to redeploy him or her to another position within the company.
An employee on a fixed-term contract whose departure has been brought forward for this reason is entitled to severance pay. If the inaptitude is due to the employee's professional activity, the indemnity must be at least equal to twice the legal severance pay.
Force majeure
Early termination of a fixed-term contract on grounds of force majeure occurs when the company is faced with an external, unforeseeable and insurmountable event. This could be a disaster, a natural catastrophe, etc. To terminate a fixed-term contract on grounds of force majeure, all that's required is a letter from the employee or the employer.
In general, the employee is not entitled to compensation in this context. However, the employer may decide to pay the employee compensation equal to the wages he or she would have earned had the fixed-term contract expired.
Any early termination of a fixed-term contract for a reason not listed in Article L1243-1 is considered unlawful. The person initiating such action is liable to severe penalties.
When an employee unlawfully terminates a fixed-term contract, he pays damages to his employer in accordance with Article 1240 of the French Civil Code. In this case, the company manager presents an assessment of the damage to the judges, who take this into account when setting the amount of damages. The employee is also no longer entitled to precariousness benefits.
When this is done on the employer's initiative, he must also compensate his employee. According to article 1243-4 of the French Labor Code, the amount of damages must be at least equal to the amount of wages that the employee should receive until the end of the contract.
Following early termination of a fixed-term contract, the employer must provide the employee with a certificate of employment. This document enables him to prove that he is free of any commitment. It also enables him to assert his rights. The employer must also provide the employee with a "solde de tout compte" and aPôle emploi certificate. In addition, the head of the company can provide the employee with the company's employee savings plan, as well as documents relating to profit-sharing and incentive schemes.
After a termination, the employee is free to look for another job or set up his or her own company.
Amicable termination of a fixed-term contract has many advantages for both parties. It avoids disputes and preserves a good working relationship. What's more, it offers greater flexibility in negotiating the terms of departure, such as the termination date or the payment of additional compensation. However, it is advisable to have this termination agreement drawn up by a lawyer, to ensure that all the rights and obligations of each party are clearly defined.
In the event of a dispute concerning the early termination of a fixed-term contract, we strongly advise you to consult a lawyer specializing in employment law. A legal professional will be able to assist you in every step, advise you on the steps to take and represent you before the competent courts. He or she can also help you assess the merits of your claims and negotiate the best out-of-court settlement terms. Don't hesitate to seek the help of a lawyer at the very first signs of conflict.
Written by our expert Editorial staff
April 3, 2023
