Seniority in a permanent contract (CDI) is an important reference point in the employment relationship. It can have concrete effects on notice periods, eligibility for severance pay, access to certain benefits provided by collective agreements, or the payment of a seniority bonus. However, how it works is not always easy to understand, especially when a CDI follows a fixed-term contract, a temporary assignment, or when the employee has had certain periods of absence.
Understanding how seniority is calculated helps anticipate rights and avoid misinterpretations. Starting point, absences, transition after a fixed-term contract or after a temporary assignment: several situations can affect the length of service taken into account.
How is seniority calculated in a permanent contract?
Seniority corresponds to the employee’s length of service within the company. It is calculated between the employee’s effective start date in the company and the date on which the employee’s rights are assessed.
It can be expressed in years, months, or days. In practice, it is mainly used to check whether a threshold has been reached for the opening of certain rights, for example for notice periods or severance pay.
The starting point for seniority corresponds to the first day of performance of the employment contract. The probationary period is included in this calculation when the contract continues. If the employee is confirmed at the end of this period, seniority is therefore calculated from the beginning of the employment relationship and not from the end of the probationary period.
Part-time work does not affect the acquisition of seniority. The French Labour Code provides that seniority for part-time employees is counted as if they had worked full-time for the determination of rights linked to seniority (Article L3123-5 of the Labour Code).
How absences are taken into account for seniority
Not all absences have the same impact on seniority. Some periods are treated as effective working time and therefore continue to be included in the calculation. This is notably the case for maternity leave, paternity and childcare leave, adoption leave, absences related to a workplace accident or occupational illness, and in some cases, professional training leave or certain secondment and assignment periods within the same group.
Other absences suspend the employment contract without erasing previously acquired seniority. However, they are not always added to the duration considered for the opening of certain rights. This is notably the case for full-time parental leave, sabbatical leave, unpaid leave, or certain non-work-related sick leaves, depending on the provisions of the applicable collective agreement.
Regarding full-time parental leave, only the first year is treated as effective working time for the calculation of certain rights linked to seniority, in accordance with Article L1225-54 of the Labour Code.
Seniority carried over after a fixed-term contract
When an employee is hired on a permanent contract following a fixed-term contract with the same employer, the seniority acquired during that contract is retained when the employment relationship continues.
The Labour Code provides that, in this situation, the employee keeps the seniority acquired at the end of the fixed-term contract (Article L1243-11 of the Labour Code). The duration of the fixed-term contract is also deducted from any probationary period provided for in the permanent contract.
This carry-over of seniority may have practical effects from the start of the new contract, particularly regarding eligibility for certain rights or the length of notice in case of a later termination.
Seniority carried over after a temporary agency assignment
When an employee is hired by the host company following a temporary agency assignment, the duration of assignments carried out in that company during the three months preceding the recruitment is taken into account for the calculation of seniority.
This provision is set out in Article L1251-38 of the Labour Code. The duration of the assignments is also deducted from any probationary period provided for in the permanent contract.
Seniority and changes within the company
A change of position within the same company does not erase previously acquired seniority. A change in duties, internal mobility, or a change of department does not interrupt the continuity of the employment contract.
Seniority is also preserved in the event of a transfer of the employment contract. When the situation falls under Article L1224-1 of the Labour Code, the contract continues with the new employer and seniority continues to produce its effects.
However, when an employee leaves the company and is rehired later, seniority does not automatically resume. Unless otherwise provided or expressly agreed, a new hiring restarts seniority from the new entry date.
What the law says about rights linked to seniority
Seniority is used by the Labour Code to determine several rights. It first applies to the notice period in case of dismissal. Article L1234-1 of the Labour Code provides for notice determined by law, collective agreement, or practice for seniority of less than six months, one month’s notice between six months and less than two years of seniority, and two months’ notice from two years of seniority.
Seniority is also taken into account for statutory severance pay. The employee must have at least eight months of uninterrupted seniority with the same employer to be eligible, in accordance with Article L1234-9 of the Labour Code.
The minimum amount of this compensation is set by Article R1234-2 of the Labour Code. It corresponds to one quarter of a month’s salary per year of seniority up to ten years, then one third of a month’s salary per year beyond ten years.
Beyond the legal minimum, seniority may also give entitlement to benefits provided by the collective agreement or internal company agreements, such as additional leave, a seniority bonus, or more favorable salary maintenance conditions.
Seniority bonus in a permanent contract
A seniority bonus is not mandatory. The Labour Code does not provide for a general seniority bonus applicable to all employees. It most often depends on the collective agreement, a company agreement, or the employment contract.
When it exists, the bonus may be calculated as a percentage of salary, a fixed amount, or according to seniority thresholds. Its terms therefore vary depending on the sector of activity and the rules applicable within the company.
Checking your seniority in a permanent contract
To verify seniority in a permanent contract, you should first check the entry date in the company indicated in the employment contract. This date forms the basis of the calculation.
The payslip may also mention the entry date or the employee’s seniority. In case of carry-over after a fixed-term contract, a temporary assignment, or a transfer of the contract, it is useful to review the contract, amendments, or documents provided at the time of hiring.
The collective agreement should also be consulted when certain benefits depend on a seniority threshold, as it may provide more favorable rules than the legal minimum.