Establishing compliant employment relationships in French Polynesia requires a thorough understanding of local labor law, particularly concerning employment agreements. These contracts form the legal basis of the relationship between an employer and an employee, outlining the terms and conditions of employment, rights, and obligations for both parties. Ensuring that employment agreements adhere to the specific regulations of French Polynesia is crucial for legal compliance and fostering a stable working environment.
French Polynesian labor law provides a framework for different types of employment contracts, each suited to varying employment needs and durations. Navigating these options and incorporating all mandatory clauses correctly is essential for businesses operating or employing individuals in the territory.
Types of Employment Agreements
French Polynesian labor law primarily recognizes two main types of employment contracts, similar to metropolitan France: the indefinite-term contract (Contrat à Durée Indéterminée - CDI) and the fixed-term contract (Contrat à Durée Déterminée - CDD). The CDI is the standard form of employment contract, while the use of a CDD is strictly regulated and permitted only in specific circumstances.
| Contract Type | Abbreviation | Description | Typical Use Cases | Duration |
|---|---|---|---|---|
| Indefinite-Term Contract | CDI | The standard, open-ended employment contract. | Permanent positions, core business activities. | No fixed end date. |
| Fixed-Term Contract | CDD | Used for specific, temporary tasks; requires a valid legal justification. | Replacement of an absent employee, temporary increase in activity, specific projects, seasonal work. | Limited duration, typically with a maximum renewal period. Specific limits apply based on the reason for the CDD. |
A CDD must be in writing and specify the precise reason for its use. There are strict limits on the maximum duration of a CDD, including renewals, which vary depending on the specific justification for the contract. Misusing a CDD or exceeding the maximum duration can result in the contract being automatically reclassified as a CDI.
Essential Clauses
French Polynesian employment contracts, whether CDI or CDD, must be in writing and include several mandatory clauses to be legally valid and compliant with local labor law. While specific requirements can vary slightly based on collective bargaining agreements applicable to the industry, the core essential elements are defined by the Labor Code.
Key mandatory clauses typically include:
- Identification of both employer and employee.
- Place of work.
- Job title and description of duties.
- Start date of employment.
- Duration of the contract (for CDD) or indication it is indefinite (for CDI).
- Probationary period duration and conditions (if applicable).
- Remuneration (salary, bonuses, benefits).
- Working hours (daily, weekly, or monthly).
- Applicable collective bargaining agreement (if any).
- Paid leave entitlements.
- Notice period requirements for termination.
- Reference to the relevant labor legislation.
Any significant change to these essential terms requires a formal amendment to the contract, agreed upon by both parties.
Probationary Period
Employment contracts in French Polynesia may include a probationary period (période d'essai) at the beginning of the employment relationship. This period allows both the employer to assess the employee's skills and suitability for the role and the employee to evaluate if the position meets their expectations.
The duration of the probationary period is typically defined by the Labor Code or applicable collective bargaining agreements. Standard maximum durations for initial probation periods are often:
- Workers/Employees: 1 month
- Technicians/Supervisors: 2 months
- Managers/Executives: 3 months
These periods can sometimes be renewed once, provided the possibility of renewal is explicitly stated in the initial contract or collective agreement, and the employee agrees to the renewal. The total duration, including renewal, cannot exceed specific legal limits (e.g., typically double the initial period). During the probationary period, either party can terminate the contract with a shorter notice period than required after probation, as stipulated by law or collective agreement.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are permissible in French Polynesian employment contracts but are subject to specific legal requirements to be enforceable.
- Confidentiality Clauses: These clauses aim to protect the employer's sensitive business information. They are generally enforceable provided they are reasonable in scope, duration, and the type of information covered. They typically remain in effect during and after the employment relationship.
- Non-Compete Clauses: These clauses restrict an employee from working for a competitor or starting a competing business after leaving the company. For a non-compete clause to be valid and enforceable in French Polynesia, it must meet several cumulative conditions:
- Be in writing in the employment contract.
- Be justified by the legitimate interests of the company (e.g., protecting specific know-how or business relationships).
- Be limited in its geographical scope.
- Be limited in its duration.
- Be limited to specific types of activities.
- Include a financial compensation paid to the employee after the contract termination for the duration of the restriction. Without this financial compensation, the clause is generally considered null and void.
The enforceability of these clauses is often assessed by courts based on the specific circumstances and whether the restrictions are proportionate and do not unduly hinder the employee's ability to find future employment.
Contract Modification and Termination
Modifying an existing employment contract in French Polynesia requires the mutual written consent of both the employer and the employee. Any significant change to an essential element of the contract (such as salary, working hours, job duties, or location) constitutes a modification that must be formally agreed upon. An employer cannot unilaterally impose substantial changes to the contract terms.
Termination of an employment contract is strictly regulated by French Polynesian labor law, with different rules applying to CDI and CDD.
-
CDI Termination: A CDI can be terminated by either party.
- Employer Termination: Requires a valid and genuine reason (cause réelle et sérieuse), which can be related to the employee's conduct (faute) or economic circumstances (motif économique). Specific procedures, including mandatory interviews and written notification with stated reasons, must be followed. Notice periods apply, the length of which depends on the employee's seniority and position, or applicable collective agreements. Severance pay may be due depending on seniority and the reason for termination.
- Employee Termination (Resignation): Requires the employee to provide written notice according to the legally defined or contractually agreed-upon notice period.
- Mutual Agreement (Rupture Conventionnelle): Possible for CDI, allowing employer and employee to agree on the terms of separation, subject to administrative approval.
-
CDD Termination: A CDD is intended to end on its specified term date. Early termination is only permitted in limited circumstances:
- Mutual agreement of both parties.
- Serious misconduct (faute grave) by either party.
- Force majeure (unforeseeable and unavoidable event).
- If the employee obtains a CDI elsewhere (employee initiated, subject to notice).
Terminating a CDD outside of these specific cases can lead to significant penalties for the party initiating the termination, potentially requiring payment of damages equivalent to the salary the employee would have received until the scheduled end of the contract.
