CDI vs CDD: Legal and Practical Differences in 2026

The choice between an indefinite-term contract (CDI) and a fixed-term contract (CDD) constitutes a major strategic decision for any employer. These two contractual forms, although regulated by the French Labour Code, respond to distinct logics and imply different obligations. Understanding their legal and practical specificities enables HR departments to secure their recruitment and optimise their human resources management policy.

The CDI: the normal and general form of employment contract

In accordance with article L1221-2 of the Labour Code, the CDI is the normal and general form of employment relationship. It has no end date and offers the employee maximum job security. The employer commits to a lasting relationship, which implies strict procedures in the event of termination: dismissal for personal or economic reasons, consensual termination, resignation or retirement.

The CDI may be concluded on a full-time or part-time basis, and generally begins with a probationary period (2 to 4 months depending on the professional category, renewable once). Its written form is not mandatory, except in certain cases (part-time, specific clauses), but it remains highly recommended to secure the employment relationship.

The CDD: a strictly regulated exceptional contract

The CDD may only be concluded for the execution of a specific and temporary task, in the cases strictly enumerated by article L1242-2 of the Labour Code:

• Replacement of an absent employee

• Temporary increase in activity

• Seasonal or customary employment

• Supported contracts (apprenticeship, professional development)

Its maximum duration is generally 18 months, including renewals (up to twice). The contract must imperatively be written and transmitted to the employee within 2 working days following hiring, failing which it will be reclassified as a CDI (article L1242-13).

At the end of the CDD, the employee receives an end-of-contract allowance (precariousness bonus) equal to 10% of total gross remuneration, except in exceptional cases (seasonal contracts, refusal of a CDI offered on equivalent terms).

Practical differences for the employer

Failure to comply with these rules exposes the employer to civil sanctions (reclassification as CDI, payment of allowances) and criminal penalties (fine up to €3,750, doubled in case of reoffence).

Choosing the right contract according to needs

The use of a CDD must always be justified by an objective and temporary reason. In case of doubt, the CDI remains the safest legal solution. Companies favouring abusive CDDs expose themselves to increasing employment tribunal litigation, with judges applying a strict interpretation of the cases where use is authorised.

HR directors must also anticipate the impact of CDDs on the employer's contribution to unemployment insurance, which may be adjusted according to the rate of termination of short-term contracts (bonus-malus system since 2021).