Differences in Employment Contracts Between France and Canada

If you are moving from Canada to France or from France to Canada on a Working Holiday Visa (or another type of authorization), you may be wondering how employment contracts and employment laws compare between the two countries.

It’s an important question to ask, because there are indeed important differences to be aware of.

In this article, we’ll cover the essentials of what you need to know.

1. Centralized vs decentralized labour laws
2. Common types of contracts
3. Termination

Centralized vs decentralized labour laws

French labour law is national

The first thing to know is that employment standards in France are defined and applied in a centralized manner. France’s labour laws (Code du travail) are national. That means that regardless of where you work in France, you are generally subject to and protected by the same set of rules.

Canadian labour law is provincial/territorial

Unlike those of France, Canada’s labour laws are decentralized; they are primarily established at the provincial/territorial level.

This means that workers in Quebec, Ontario, and British Columbia, for example, are not covered by the same labour laws. As a result, there are 13 sets of laws around minimum wage, paid vacation, termination notice, etc.

A subset of jobs are regulated federally, not provincially. These are called “federally regulated industries.” This includes (but is not limited to) jobs in:

• air transportation, including airlines, airports, aerodromes and aircraft operations
• banks, including authorized foreign banks
• postal and courier services
• radio and television broadcasting

Common types of contracts

Types of contracts in France

France has very clearly defined contract types, and in most cases they are written on paper and signed by all parties before commencing work.

Here are the most common types of contracts.

1. CDD (contrat à durée déterminée)

The CDD is a contract that has a pre-defined start date and end date. It can be full time or part time.

There is a probation period of a few weeks, during which either party may terminate the contract.

At the end of the CDD, the employee is in many cases entitled to a taxable bonus equivalent to 10% of their gross pay. However, this bonus is not applicable if employment is terminated prematurely, or if the employee is offered a CDI at the end.

2. CDI (contrat à durée indéterminée)

The CDI is a contract that has a start date but no pre-defined end date. It can be full time or part time.

There is a probation period of a few months, during which either party may terminate the contract. After the probation period, the employee can resign, provided they respect the minimum resignation period.

3. Saisonnier

The seasonal contract is used for seasonal work, defined as work that occurs at the same time of year every year. It can be full time or part time. It is most commonly seen in jobs related to tourism, agriculture, and hospitality.

While it is technically a type of CDD, there are some important differences:

• Instead of a precise end date, it may say “until the end of the season”.
• There is no 10% end-of-contract bonus.

4. Contrat d’intérim, contrat intérimaire, contrat de travail temporaire, contrat de mission

An interim contract is used when you are assigned to a company by an agency. It involves three parties:

1. the agency,
2. the employee,
3. and the client company.

Your primary employment relationship is with the agency, not the client company.

Types of Contracts in Canada

In Canada, you may be surprised to learn that employment relationships do not always have to be formalized in a full written contract. In many cases, they may be written or oral.

However, even if there is no written contract, labour legislation (around pay, leave, termination, etc.) still applies to employers and employees. Make sure you know what your rights are in your province.

For simplicity, there are two main types of contracts in Canada:

1. Permanent (indefinite) jobs are ones with a start date but no end date. They can be either full time or part time.
2. Temporary (fixed-term) jobs are ones with a predetermined end date. They can be either full time or part time.

Don’t assume that

• permanent jobs are equivalent to CDIs in France.
• temporary jobs are equivalent to CDDs in France.

The French and Canadian labour frameworks are very different, with the French system being much more formalized in written contracts and enshrined in centralized legislation.

Termination

In general, employee protections are stronger and more generous in France than in Canada. This makes employers more cautious about whom to hire. Conversely, in Canada, employers and employees have more flexibility to enter into and end employment relationships, making the labour market more dynamic.

Resigning from a job

In France, either party can terminate the contract during the probation period. After the probation period, the employee must respect the notice period set forth for their collective agreement (convention collective can be found on your contract or pay stubs), from one to three months. To check, use the official simulator.

In Canada, the usual practice is for employees to give two weeks’ notice when resigning, but this is not a legal requirement. Giving two weeks is a courtesy to give employers sufficient time to find a replacement. It preserves goodwill and can help you use past employers as references in the future.

Being dismissed from a job

In France, there are strict rules around terminations by employers, as employee protections are quite strong. During the probation period, either party can terminate the contract. After this period, French employers do not have the freedom to terminate a contract without just cause. This is probably the biggest difference between employment in France and Canada.

In Canada, it is possible for employers to dismiss an employee without just cause. The dismissal notice mainly depends on the employee’s tenure at the company. It generally ranges from 1 to 8 weeks, with the upper range requiring approximately ten years of tenure. That said, a notice period may not be required if the employee has been working for fewer than three months or if the employer establishes just cause for termination.