A fixed-term contract is a type of contract that applies only to the completion of a well-defined project for a provisional duration (and must comply with the conditions set out in Articles L1242-2 and L1242-3 of the Labor Code). In theory, it ends when the fixed-term contract (CDD) expires. However, it may be terminated early in cases authorized and provided for by law, at the initiative of the employee or the employer. How does a fixed-term contract end? What are the different procedures to be followed for both employer and employee? We'll answer these questions together in this article.
Terminating a fixed-term contract before its expiry date: deadline to be respected by the employer
This type of contract must follow a specific procedure and include a predetermined number of mandatory clauses. The employer may terminate a fixed-term contract before its expiration date only in the event of serious misconduct, of gross fault, of force majeure or incapacity declared by the occupational physician. The employer may also agree to terminate the contract amicably with the employee. There is no no statutory notice period for the end of a fixed-term contract.
On the employee's side, he can leave his post only if he is recruited on a permanent contract at another place during the trial period, or if his boss has committed a serious fault. Apart from these cases, the employee is obliged to obtain an agreement from his employer to terminate his fixed-term contract.
What are the employer's responsibilities in the event of non-renewal of a fixed-term contract?
Although the law does not stipulate a deadline for the employer to terminate a fixed-term contract, it is nonetheless the employer's responsibility to notify the employee as soon as possible, so that the latter can make the necessary arrangements. The employer must inform the employee in writing (preferably by registered letter with acknowledgement of receipt) of the reason for terminating the assignment and the contract, at the very least 2 months before termination of fixed-term contract.
The task for which it was agreed and the exact date on which the contract will end must be stated. The employee is then required to complete one day's notice per week, taking into account the entire fixed-term contract period, including, where applicable, one or two renewals (or the duration of the contract if the fixed-term contract period has not been set). In any event, the notice period must not exceed 2 weeks.
What are the employee's rights at the end of a CDD?
At the end of the fixed-term contract, the employer must pay the employee the end-of-contract indemnities and compensation for paid leave not taken.
The obligations of the employer at the end of the CDD:
- a work certificate;
- an unemployment insurance certificate (also sent to Pôle emploi);
- and a receipt for the balance of the contract.
Faced with the complexity of this type of contract, the employer may well grant the employee a "special discount". IFC (severance pay equal to 10% of their total gross salary) at the end of the fixed-term contract.
What happens if both parties break the rules?
If the CDD work can be broken during the trial period, it engages the parties until the end once it is validated. A sanction is therefore provided for in the event of a breach of this commitment by both the employee and the boss.
Termination at the initiative of the employer:
In the event of termination of the contract by the employer outside the trial period, but for one of the reasons provided for by law, he is required to pay the employee an amount at least equivalent to the salary that the latter would have affected until the expiration of the contract, regardless of the time remaining.
To help employees better understand their situation, it is recommended that they undergo a skills assessment before starting to look for a new job. This assessment helps identify areas for improvement in order to secure a permanent contract.
Termination at the initiative of the employee:
If the employee has been hired on a permanent contract by another employer, they must submit a written request and provide proof of their permanent contract, either their new employment contract or a promise of employment, in order to terminate their fixed-term contract before its expiry date. The latter must pay their current employer “damages and interest” depending on the consequences (damage) of the breach.
In principle, a fixed-term contract must be carried through to its end. Both the employee and the contractor must respect the date initially agreed when the employment contract was signed. However, the law provides for specific cases where the termination of a fixed-term contract is possible for both parties. Do you have any other questions about employment contract terminations? What if wage portage is a better option for working on your own? Discover the advantages of wage portage to make an informed choice.
English