Employment agreements in French Polynesia are fundamental to establishing a clear and legally compliant working relationship between an employer and an employee. These contracts define the terms and conditions of employment, ensuring both parties understand their rights and obligations under local labor law. A well-drafted agreement is crucial for preventing disputes and ensuring adherence to the specific regulations governing employment in the territory, which draw from French labor law principles adapted to the local context.
Understanding the nuances of these agreements, from the different types available to the mandatory clauses and termination procedures, is essential for companies operating or planning to hire in French Polynesia. Compliance with local requirements is not just a legal necessity but also a key factor in building stable and productive employee relationships.
Types of Employment Agreements
French Polynesian labor law primarily recognizes two main types of employment contracts: 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, representing a stable and ongoing relationship, while the CDD is an exception, permitted only under specific circumstances defined by law.
| Contract Type | Abbreviation | Description | Typical Use Cases |
|---|---|---|---|
| Indefinite-Term Contract | CDI | Standard contract with no end date. | Permanent positions, core business activities. |
| Fixed-Term Contract | CDD | Contract with a specific end date or duration, or linked to a specific event. | Replacing an absent employee, temporary increase in activity, specific projects, seasonal work. Strictly regulated. |
The use of a CDD is strictly regulated and must be justified by a specific, temporary need. It cannot be used to fill a permanent position linked to the company's normal and permanent activity. There are also rules regarding the maximum duration and renewal of CDDs.
Essential Clauses Required
French Polynesian employment contracts, particularly the CDI, must contain several mandatory clauses to be legally valid and compliant. While a written contract is not strictly mandatory for a full-time CDI (though highly recommended for clarity), it is compulsory for CDDs and part-time contracts. Key information that should be included in any written agreement includes:
- 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 specification that it is a CDI.
- Probationary period duration (if applicable).
- Remuneration (salary, bonuses, benefits).
- Working hours (full-time or part-time, weekly hours).
- Paid leave entitlement.
- Reference to the applicable collective bargaining agreement (if any).
- Notice period requirements for termination.
Failure to include mandatory information, especially in required written contracts like CDDs, can have legal consequences, potentially leading to the reclassification of the contract as a CDI.
Probationary Period
A probationary period (période d'essai) allows both the employer and the employee to assess whether the position and the working relationship are suitable. It must be explicitly stipulated in the employment contract to be valid. The duration of the probationary period is typically defined by law or by applicable collective bargaining agreements.
Standard maximum durations for a CDI are generally:
- Workers/Employees: 2 months
- Supervisors/Technicians: 3 months
- Managers/Executives: 4 months
These periods can often be renewed once, provided the possibility of renewal is stated in the initial contract or collective agreement, and the employee agrees to the renewal. The total duration, including renewal, cannot exceed double the initial period. During the probationary period, either party can terminate the contract with a relatively short notice period, which varies depending on the employee's length of service during the probation.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are restrictive covenants that can be included in employment contracts, particularly for employees with access to sensitive information or in key positions.
- Confidentiality Clauses: These are generally enforceable as long as they are reasonable in scope and duration, protecting the company's legitimate business interests (e.g., trade secrets, client lists). They typically apply during and after the employment relationship.
- Non-Compete Clauses: These clauses restrict an employee from working for a competitor or setting up a competing business after leaving the company. For a non-compete clause to be valid and enforceable in French Polynesia, it must meet several strict criteria:
- It must be justified by the legitimate interests of the company.
- It must be limited in time.
- It must be limited in geographical scope.
- It must be limited to specific professional activities.
- Crucially, it must include a financial compensation paid to the employee after the termination of the contract. Without this financial consideration, the clause is generally considered null and void.
The enforceability of these clauses is subject to judicial review, and courts will assess their validity based on these criteria.
Contract Modification and Termination
Modification of an essential element of the employment contract (such as salary, working hours, or job duties) generally requires the employee's written consent. Unilateral modification by the employer is typically not permitted for essential terms and can be considered a breach of contract by the employer.
Termination of an employment contract in French Polynesia is strictly regulated, particularly for CDIs. A CDI can be terminated through various means:
- Mutual Agreement (Rupture Conventionnelle): Both employer and employee agree to terminate the contract under specific legal procedures, resulting in the payment of a specific indemnity.
- Resignation: The employee decides to terminate the contract, subject to respecting a notice period.
- Dismissal (Licenciement): The employer terminates the contract. Dismissal must be based on a real and serious cause, which can be related to the employee's conduct (faute) or economic reasons (motif économique). Strict procedures, including interviews and written notifications, must be followed. Failure to follow procedure or lack of a valid cause can lead to the dismissal being deemed unfair, resulting in significant compensation owed to the employee.
- Force Majeure: Termination due to an unforeseen and unavoidable event making the continuation of the contract impossible.
Fixed-term contracts (CDDs) typically end automatically on their specified term or upon the completion of the task for which they were hired. Early termination of a CDD is only permitted in specific cases, such as serious misconduct (faute grave), force majeure, mutual agreement, or if the employee obtains a CDI elsewhere. Terminating a CDD outside these permitted cases can result in significant penalties.
