What happens if the employment contract is not signed?

Published on
November 24, 2023
What happens if the employment contract is not signed?

The employment contract is a paper or digital document that governs the working relationship between an employee and a company. It is an administrative document with legal value since it defines the rights and obligations of both parties in the professional setting. Its signature gives the contract legal weight, which is why signing is mandatory in most cases. Without a signature, the contract can become legally obsolete, leading to serious consequences for both the employer and the employee. Using digital signature software can streamline document management and ensure compliance.

What is an employment contract?

An employment contract is a written agreement between an employer and an employee. It outlines the working conditions, salary, hours, and other sector-specific details. The document frames the professional relationship and gains its legal value from being signed by both parties within the required timeframe.

Regulation of contract signature

The employment contract is designed to protect the future employee and clearly define their responsibilities within the company. Although the labor code does not always impose a strict deadline for signing a full-time permanent contract, in practice, the signature is affixed to all employment-related documents. In most cases—such as part-time permanent, fixed-term, apprenticeship, professionalization, or temporary contracts—the signature is mandatory. According to Article L1221-1 of the Labor Code, the contract must be in writing and include essential details like job qualification, salary, working hours, and the type of contract. The mutual signature ensures the document’s legal validity.

Legal deadlines for signing

Ideally, the employment contract should be signed before the commencement of work, although deadlines vary by contract type:

Full-time permanent contracts

While there is no legally mandated deadline, it is advisable to have the contract signed at least 48 hours before the employee starts work.

Fixed-term and temporary contracts

These contracts must be provided to the employee no later than two days after hiring.

Apprenticeship contracts

Such contracts must be signed by both parties before the professional activity begins.

Consequences of an unsigned contract

The absence of a signed employment contract can lead to several issues:

Legal ambiguity in disputes

Without a signed document, the exact terms of the working relationship become unclear, making it difficult to resolve conflicts based on concrete contractual terms.

Administrative sanctions

Failure to comply with the signing requirements may result in administrative penalties for the employer, including fines or other disciplinary measures.

Social security complications

Certain benefits—such as health insurance coverage and social security contributions—rely on the terms of the signed contract. An unsigned contract can create administrative challenges in managing these aspects.

Impact on company reputation

Not signing contracts may be seen as a lack of transparency and professionalism, potentially harming the employer’s reputation and complicating future recruitment efforts.

Conclusion

The signature of an employment contract is essential for legalizing the working relationship between an employer and an employee. Even in cases where the law does not explicitly mandate a signature for every type of contract, having a signed document is highly recommended. It provides a reliable basis for resolving any future disputes. Utilizing an online personnel management tool is an effective way to ensure contract compliance and accurately track signatures.