When a foreign employee's residence permit reaches its expiry date, the same question arises for both the employee and the employer: what happens to the employment contract? Can the person continue working? Must the company suspend the contract, dismiss the employee or simply wait for renewal?
These situations are common and often misunderstood. An ill-considered or premature response can be costly, both for an employee who loses their job and for an employer exposed to significant penalties. This article explains the relevant rules and the practical steps to take.
What happens to the employment contract when a residence permit expires?
The starting point is Article L. 8251-1 of the French Labour Code: it is prohibited to hire, retain in employment or employ a foreign national who does not hold the authorisation required to carry out salaried work in France. Article L. 5221-5 likewise requires the necessary work authorisation to have been obtained before employment can begin.
However, the expiry date printed on a residence card is not, by itself, enough to determine that permission to work has ended. The employer must first check whether a valid renewal document or a statutory extension preserves the employee's rights. Where no such protection applies and the right to work has genuinely ended, the employee cannot lawfully continue performing the role.
Can I continue working while my residence permit is being renewed?
Where the employee has submitted a timely renewal application and holds a valid receipt or certificate extending examination of the application that preserves the right to work, employment can continue without interruption. The precise document and the rights attached to the permit being renewed must be checked. An ANEF submission acknowledgement alone is not permission to work.
The practical message for both employee and employer is to plan ahead. Applying within the prescribed period and obtaining the appropriate provisional document helps avoid many difficulties.
There is also an important statutory safeguard. Under Article L. 433-3 of the CESEDA, a person applying to renew a four-year multi-year residence card, a resident card, or a residence document valid for more than one year under an international agreement may use the expired document to evidence lawful residence while awaiting the decision, for up to three months after expiry, subject to the provision's conditions.
During that protected period, the person retains their social rights and their right to carry out professional activity. This safeguard should therefore be checked before any decision is made to stop work or end employment.
Can the employment contract be suspended while the situation is resolved?
One common misconception needs to be addressed: the Labour Code does not automatically suspend the employment contract simply because a residence card expires. There is no general statutory mechanism that automatically freezes the contract for the duration of renewal formalities.
In practice, temporarily stopping work is sometimes considered where the parties hope to preserve the employment relationship. Any such arrangement requires careful legal assessment: it does not create a right to work, does not automatically secure the contract indefinitely and cannot be used to allow unauthorised employment to continue. The actual immigration position and the prospects of obtaining valid documentation must be checked promptly.
Can an employer dismiss an employee whose residence permit has expired?
Where the employee no longer has permission to work and no renewal protection applies, the employer cannot lawfully continue employing them in the role. Termination may therefore be required. This must be distinguished from automatically dismissing someone merely because the physical card has expired, without checking the safeguards described above.
The Court of Cassation's case law treats the absence of the required authorisation as an objective ground capable of justifying termination of the employment contract. Termination on that basis follows a particular legal regime rather than the ordinary rules governing unfair dismissal.
Crucially, however, an irregular immigration position does not, in itself, amount to gross misconduct. An employer relying solely on the lack of authorisation, without establishing separate gross misconduct, cannot simply deprive the employee of the payments due on termination.
The employee's entitlements must be assessed under the applicable rules. In particular, Article L. 8252-2 of the Labour Code provides, in the circumstances it covers, for a lump-sum termination payment equivalent to three months' salary unless the relevant statutory or contractual provisions produce a more favourable result. The calculation should be checked against the history of the employment relationship.
What risks does an employer face if it allows unauthorised work to continue?
Allowing an employee to keep working after their work authorisation has genuinely ended, without a valid document or statutory extension preserving it, exposes the employer to serious risk.
Under Article L. 8256-2 of the Labour Code, employing a foreign national without the required authorisation can be punished by five years' imprisonment and a €30,000 fine. The statutory penalties rise to ten years' imprisonment and a €200,000 fine where the offence is committed by an organised group. The fine applies for each foreign national concerned, subject to the conditions and exceptions in the legislation.
There may also be payments due to the employee and administrative sanctions. For the business, the issue is therefore not merely the cost of ending the contract: unlawful employment can create substantial criminal and financial exposure.
The practical approach is clear: check the employee's actual right to work before allowing work to continue or taking a termination decision. Review the renewal application, any receipt or extension certificate and any statutory continuation of rights. Where authorisation has ended, obtain advice promptly on the appropriate employment-law response.
How can a lawyer help?
Cases involving an expired residence permit bring together French immigration law and employment law, two technical fields in which the precise facts and documents matter. Legal advice helps distinguish an expired physical card from a genuine loss of the right to work and avoid decisions with lasting consequences.
This article provides general information and is not an individual legal consultation. Every situation is different. Fazolo Avocats, a firm dedicated to French immigration law, can review your circumstances and advise you, whether you are an employee or an employer. Contact the firm for an assessment tailored to your case.
References: CESEDA, Article L. 433-3; Labour Code, Article L. 8252-2; Labour Code, criminal provisions; Service Public — ANEF certificates.
