Introduction 

If your business is expanding across the Atlantic, it’s essential to understand that employment law is not just different between France and the USA - it’s fundamentally different in how it views the relationship between employer and employee. These differences are more than just policy nuances. They affect everything from hiring timelines and working hours to termination rights and litigation risk.

In France, employment protection is rooted in social responsibility and collective rights. In the US, the focus is more on employer flexibility and contractual freedom. For international businesses operating in both jurisdictions, a copy-paste approach simply won’t work.

Whether you’re hiring your first employee or restructuring teams, knowing the key distinctions could save you significant cost and risk.

Quick Tips

• Probation periods in France are tightly regulated and require formal extension agreements.

• Unlike the US, France does not recognise 'at-will' employment - terminations require justification.

• In France, employees accrue significant paid leave and protected rights during sick or parental leave.

• The US has fewer statutory protections, but state laws can add complexity - always check locally.

• Works councils and collective bargaining are a legal requirement for many employers in France.

Termination: Just Cause vs At-Will 

The most striking difference between the US and France is how termination is handled. In the US, most employees work under 'at-will' terms, meaning either party can end the employment relationship without cause, provided it’s not discriminatory. In France, termination requires a valid reason (cause réelle et sérieuse), and employers must follow a strict process.

This includes advance notice, a formal meeting, and documentation of performance or economic rationale. Redundancy processes also involve employee representatives and detailed planning.

A client we supported in Paris faced tribunal claims after a US-style termination process was applied in France. It wasn’t malicious - just a lack of awareness. We were able to resolve the issue with a settlement, but a proactive review would have saved significant time and cost.

Working Time and Leave Entitlements 

The 35-hour work week in France is more than a guideline - it’s a legal standard. Overtime rules are strictly enforced, and many sectors have collective agreements that set additional protections. Employees in France also benefit from five weeks of paid annual leave, plus public holidays and generous sick pay.

In contrast, the US has no federal statutory minimum for paid holiday. Most companies offer between 10-15 days, and sick pay is often at the employer’s discretion unless mandated by state law.

This isn’t just a cultural difference - it’s a compliance issue. If you’re offering remote work across borders, you must localise entitlements. Otherwise, you risk breaching local laws or failing to attract talent who expect more generous terms.

Employee Representation and Collective Rights 

French labour law places a strong emphasis on employee representation. Once a company in France exceeds 11 employees, it must establish a Social and Economic Committee (CSE). This committee has consultation rights on key employment decisions, such as restructures, working conditions, and health and safety.

In the US, unionisation is much lower and employer obligations are lighter unless a collective bargaining agreement is in place. That said, the National Labor Relations Act still protects concerted employee activity, even in non-unionised settings.

Failing to recognise or engage with a CSE in France can invalidate employment decisions. We worked with a UK company entering the French market who needed urgent support setting up a CSE. With our help, they did so compliantly and avoided reputational risk during their first restructure.

A Real Example: Misclassification and Multi-country Risk 

One US-based tech company hired independent contractors in both France and California without adapting their agreements. In France, the contractors were later reclassified as employees after a legal review - leading to back pay, benefits, and penalties.

We stepped in to reassess the contracts, worked with local counsel, and transitioned them to compliant employment arrangements. It was a lesson in why global doesn’t mean identical.

Final Thoughts 

Managing people across France and the USA requires more than translation - it demands true localisation. Labour law is not just legal risk, it’s cultural understanding. Employers who invest in tailored, compliant processes gain more than protection - they gain trust, retention, and reputation.

What’s next for your global people strategy? 

Book a free compliance check-in or HR audit with ThinkGlobal HR. We’ll help you navigate the legal terrain, avoid costly errors, and build people systems that scale - wherever your business grows.