Maître Frédéric CHHUM, Avocat, Défense de salariés, cadres, Dirigeants et entreprises

1) Definition

The fixed-term contract “with determinate purpose” (“CDD à objet défini”) is intended to engineers and executives (“ingénieurs et cadres”).

Its minimal term is of 18 months and its maximal term is of 36 months.

Such contract cannot be renewed.

At the end of such contract, the employer must pay a precariousness indemnity (“indemnité de précarité”), except the contract is pursued by an unlimited-term contract (this indemnity is of 10% of the total gross salary).

2) Conditions of application

Such contract must be authorized by an extended sectoral agreement or a company agreement, which must be specified:

- Economics necessities justifying the recourse to such contracts (it can not be used to square up to a temporary increase of activity);

- Conditions wherein employees in fixed term contract engagement with determinate purpose benefit from safe concerning help for relocation, attribution of diplomas based exclusively on proven professional experience, and continual vocational training;

- Conditions wherein employees employed under fixed term contract with determinate purpose, have a priority access for unlimited-term contract in the company.

3) Compulsory provisions

The fixed term contract “with determinate purpose” must be established in writing and mus include certain compulsory provisions, such as:

- the purpose of the contract (i.e. fixed term contract engagement with determinate purpose) must be indicated;

- the applicable collective agreement;

- a clause which describes the reason which justified the recourse of such fixed term contract and which mentions its estimated duration ;

- definition of assignments for which the fixed term contract is concluded;

- the event or target result, which determinates the term of the contract;

- the helpfulness delay for term of contract;

- A clause which mentions, possible breaks at the anniversary date and the amount of the 10% indemnity for precariousness.

4) Term of the contract and early break at the anniversary date of the engagement

The engagement ends by the realisation of the purpose which the contract was concluded, after a 2 months delay.

Such fixed term contract with “determinate purpose” can, only, end before the realization of its purpose, at the anniversary date of its conclusion, by the employer or the employee, for a “real and serious cause “ (“cause réelle et sérieuse”).

Frédéric CHHUM avocat à la Cour

Diane BUISSON

e-mail : chhum@chhum-avocats.com

www.chhum-avocats.com

tel 01 42 89 24 48