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 governed by the French Labour Code, respond to distinct logics and involve different obligations. Understanding their legal and practical specifics allows HR departments to secure their recruitment and optimise their human resource 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 the 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 case of termination: dismissal for personal or economic reasons, conventional termination, resignation or retirement.

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

The CDD: an exception contract strictly regulated

The CDD can only be concluded for the execution of a precise and temporary task, in the cases exhaustively listed by article L1242-2 of the Labour Code:

• Replacement of an absent employee

• Temporary increase in activity

• Seasonal or customary employment

• Supported contracts (apprenticeship, professionalisation)

Its maximum duration is generally 18 months, including renewals (up to twice). The contract must imperatively be in writing and transmitted to the employee within 2 working days following recruitment, under penalty of reclassification as CDI (article L1242-13).

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

Practical differences for the employer

Non-compliance with these rules exposes the employer to civil sanctions (reclassification as CDI, payment of compensation) and criminal penalties (fine up to €3,750, doubled in case of recurrence).

Choosing the right contract according to needs

Recourse to a CDD must always be justified by an objective and temporary reason. In case of doubt, the CDI remains the legally safest solution. Companies favouring abusive CDDs expose themselves to increasing employment tribunal disputes, as judges apply a strict interpretation of authorised cases for recourse.

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