OD FLASH | New fixed-term contract for professional retraining purposes

Act No. 2025-989 of 24 October 2025 transposing national interprofessional agreements in favor of employees’ employment (Article 11, Title VII – Professional Transitions)

The Act of 24 October 2025 introduces a new legal ground for the use of a fixed-term employment contract (CDD). Indeed, as of 1 January 2026, employers and their employees are able to enter into a CDD for the purpose of professional retraining, in particular as part of a transition to a role outside the company.

This CDD, with a minimum duration of six months, is intended to allow the employee to leave their original company in order to join a host company, where they can test and acquire the professional skills required for the activity in which they may wish to retrain. Throughout the entire duration of the CDD, the employment contract with the original company is not terminated but merely suspended.

To determine the conditions under which the employment contract may be terminated, two scenarios must be distinguished.

In the first scenario, the CDD continues with the host company beyond the probationary period. The employment contract with the original company is then terminated through a formally approved mutual termination (rupture conventionnelle) if the contract was a permanent contract (CDI), or through a mutual agreement if the contract was a fixed-term contract (CDD).

In the second scenario, the CDD with the host company does not continue after the probationary period. The employee is then reinstated in the original company. Reinstatement takes place in the employee’s original position or an equivalent position, with remuneration at least equivalent. However, if the employee objects to reinstatement, the employment contract is terminated in accordance with the procedures applicable to the first scenario.