Essential elements to check before signing an employment contract

Trial period, contract duration, work location, mobility clause, and remuneration are key points to watch out for. When the employment contract doesn't include a mobility clause, an employee's refusal to take a new position is not considered serious misconduct.


An employment contract is a reciprocal contract; it creates reciprocal obligations (to give, to do, or not to do). Therefore, before signing an employment contract, the employee should check the elements in the contract to avoid disputes arising from negligence. In this regard, the question is which clauses to verify before signing an employment contract. We will distinguish between two types of employment contracts: the permanent contract (CDI) and the fixed-term contract (CDD).

1- The case of the CDI (Permanent Contract)

When signing a CDI, the employee should check if the contract includes the following clauses:

Trial period.
The employee must be informed of the existence of a trial period – three months for managers and equivalent positions, one and a half months for employees, and fifteen days for workers, as per Article 14 of the Labor Code – in their employment contract upon hiring. The trial period is not presumed – in case of dispute, the trial period indicated by the Labor Code must apply. If the employment contract sets the trial period duration without providing for renewal, the contract cannot be renewed. If the trial period is suspended for any reason (leave, illness, accident…), the suspension period extends the trial period.

Duration
The employment contract must specify that the contract duration is indeterminate, so both parties can terminate it, subject to respecting notice periods.

Workplace and mobility clause.
The employer can change an employee's workplace from that initially stipulated in the contract, provided the employment contract includes a mobility clause, or if the company's interest requires this change. Employee refusal in this case is considered a serious and legitimate reason for dismissal. However, when the employment contract does not include a mobility clause, an employee's refusal to accept a new position is not serious misconduct justifying dismissal.

Position and classification
The employer must clearly define the functions and tasks of the hired employee, as well as the classification provided for in the employment contract, which must be compatible with the functions they will perform. In this case, the employee has the right to refuse to perform a task outside their job description.

Remuneration
The employee must check whether the salary indicated in the employment contract is gross or net. The gross salary is the amount before social security contributions are deducted. The net salary is the amount after deduction of employee social security contributions. In case of a dispute, the burden of proof regarding the salary rests with the employer.

Exclusivity clause
The employee has a duty of loyalty towards their employer during the employment contract, and the exclusivity clause prevents the employee from working for another employer during the contract; otherwise, the employer may dismiss them.

Training termination clause
This is a written agreement where the employee agrees not to leave the company for at least a certain period (e.g., one year). Otherwise, the employee must reimburse an agreed sum – already mentioned in the contract – in exchange for the training expenses covered by their employer.

Non-compete clause
The non-compete clause is an obligation by which the employee, especially a manager, agrees not to work in the same industry after the termination of the employment contract, either on their own account or for a competing company. This clause, to be valid, must meet the following conditions: it must be limited in time (e.g., twelve months) and space (clearly defined geographical area), it must be essential to protect the legitimate interests of the company, and it must take into account the specificities of the employee's job. Note that writing is not mandatory for the validity of a CDI; an oral agreement not put in writing may constitute an indeterminate-term contract.

2- The case of the CDD (Fixed-Term Contract)
Exceptionally, the employment relationship can be a fixed-term contract to perform temporary activities corresponding to the cases provided for in Articles 16 and 17 of the Labor Code.
A CDD must be in writing, in duplicate, and signed by both parties. Additionally, the CDD must include the following elements:

A precise definition of its purpose, i.e., the object, which must correspond to the reasons for using a CDD: to replace an absent employee, perform seasonal work, meet a temporary increase in company activity, upon opening a new business, or launching a new product;

The contract duration, especially if it has a fixed term, or the minimum duration if it is concluded without a fixed term;

The functions or tasks to be performed
The trial period: one day per week of work, up to two weeks for contracts less than six months, or one month for contracts over six months. Shorter trial periods than those mentioned above can be provided for in the employment contract. The law prohibits CDDs in the following cases: to replace a striking employee, to fill a position related to the company's normal activity, to fill a position previously affected by collective conflict or economic dismissal, or to perform hazardous work.



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