Glossary
Local contract
An employment contract signed directly with an employer in the host country, under local law, generally involving affiliation to that country's social protection scheme rather than the French one.
A local contract is an employment contract concluded directly with an employer based in the host country, governed by that country’s labor law rather than French law. It differs from the case of an employee sent by a French company who stays on a French contract during their assignment, typically on secondment: here, the employment relationship itself is local, with its own rules on termination, leave, and pay.
Signing a local contract generally means affiliating with the host country’s social protection scheme rather than staying on the French one: the situation then resembles that of an expat rather than a seconded employee. It is a key moment to assess whether the local scheme is enough, or whether it needs to be supplemented with CFE membership and/or additional insurance.
Example
An executive who leaves their French employer to sign a local contract with a subsidiary based in Canada then falls under Canadian labor law, and must check before leaving what the local social protection scheme covers before deciding whether to join the CFE.
Also searched as: local employment contract · local employer
Related terms
To go further: CFE or private insurance: which option to choose (French)