How to negotiate a contract in Paris
Paris
As in Germany, banks in France often avoid mentioning bonuses in employment contracts for fear of becoming obliged to pay them every year. Contract law in Paris is so complex as to be Kafkaesque, even when trying to benefit employees. Bring your avocat along.
Lawrence Harvey-Wood, an employment lawyer at Freshfields in Paris, said bonuses paid more than two years' running are liable to become part of the compensation to which an employee is legally entitled: "Employers can put something in the contract saying they will negotiate a new contract, and bonus, each year. In many cases, the fact that there will be a bonus at all is not put into writing."
French bankers also need to know which collective bargaining agreement their contract places them under. This is non-negotiable and dependent on the type of firm you work for.
Some French banks are covered by the 'convention collective nationale personnel de la banque', a favourable agreement entitling those covered to a high level of severance pay. It may therefore be worth checking that a prospective employer falls into this category.
As in other jurisdictions, bankers signing contracts in France must beware of non-compete clauses preventing them from leaving to work for a competitor. These may endure up to two years, during which bankers are entitled to a non-prescribed level of compensation.
When you sign a contract in Paris it may also worth considering your ability to keep a secret. French banks often include confidentiality clauses in their contracts. If secrecy is not your strong point and you breach your contract, you could find yourself liable to pay a penalty.
Finally, you may be only just beginning a new job, but you never know when you will need to make a quick exit. Notice periods in France are typically between one month and three months, depending upon seniority, but banks can be open to negotiation.
And negotiation on any point is always much easier before you've signed away than after. Click on the following cities to see how to negotiate a contract in each: London, New York, or Frankfurt.
