How to Determine Which Collective Bargaining Agreement Applies to Your Company in France

Every private-sector company in France is, in principle, covered by a sector-wide collective bargaining agreement (convention collective de branche). This instrument sets the ground rules on minimum wages, working time, leave, welfare/insurance benefits (prévoyance) and termination of the employment contract. Yet identifying the correct collective bargaining agreement remains a delicate exercise for many managers and HR directors.

Applying the wrong agreement is far from trivial: it exposes the employer to back-pay claims, reclassification of contractual benefits and, in the most serious cases, labour court (prud’hommes) judgments accompanied by damages. The payslip must compulsorily state the applicable collective bargaining agreement (Article R.3243-1 of the French Labour Code), which makes any error immediately visible to the employee and to inspection authorities.

In this article, DAIRIA Avocats guides you step by step to determine with certainty which collective bargaining agreement applies to your company, taking into account both straightforward situations and more complex cases involving multiple activities or restructuring.

The Founding Principle: The Company’s Main Activity

French law relies on an objective criterion to determine the applicable collective bargaining agreement: the main activity actually carried out by the company. This principle is laid down by Article L.2261-2 of the French Labour Code, which provides that the applicable collective bargaining agreement is the one governing the employer’s main activity.

It is therefore neither the corporate purpose registered with the commercial register nor the APE code assigned by INSEE (the French national statistics institute). The French Supreme Court (Cour de cassation) has repeatedly held that the APE code constitutes only a rebuttable presumption, which may be overturned by proof of the activity actually carried out (Cass. soc., 10 November 2010, no. 09-42.255). In practice, the court seeks to identify the activity that occupies the largest number of employees or generates the highest turnover.

How to Identify the Main Activity in Practice

For industrial and commercial companies, two criteria are traditionally used:

The turnover criterion: the activity generating the largest share of turnover is regarded as the main activity. This criterion is favoured for commercial companies.
The headcount criterion: the activity employing the largest number of employees is regarded as the main activity. This criterion is favoured for industrial and mixed-activity companies.

Case law leaves the court a degree of discretion to select the most relevant criterion depending on the situation. In a ruling of 23 April 2003 (Cass. soc., no. 01-41.196), the Cour de cassation confirmed that the trial court has sovereign discretion to determine the main activity, provided it gives reasons for its decision.

The Territorial and Occupational Scope of the Agreement

Once the main activity has been identified, you must verify that the company genuinely falls within the scope of application of the corresponding collective bargaining agreement. Each agreement precisely defines its scope along three dimensions:

Occupational Scope

The agreement lists the covered activities, generally by reference to NAF/APE codes. For example, the national collective bargaining agreement for technical consultancies (SYNTEC, IDCC 1486) covers companies whose main activity falls under NAF codes 62.01Z, 62.02A, 62.09Z, 70.22Z, etc. If your company’s main activity corresponds to one of these codes, you fall within the occupational scope of that agreement.

Territorial Scope

Most collective bargaining agreements have national scope. However, certain regional or departmental agreements still exist, notably in construction, agriculture and metallurgy (prior to the 2024 overhaul). You must verify that the company’s place of establishment is indeed covered.

Extension by Ministerial Order

Where a collective bargaining agreement is extended by order of the Minister of Labour (Article L.2261-15 of the French Labour Code), it becomes binding on all companies within its scope, including those that are not members of any of the signatory employers’ organisations. In the absence of an extension, only companies belonging to a signatory organisation are bound.

In practice, the vast majority of sector agreements are extended, which simplifies the determination: if your main activity falls within the occupational and territorial scope of an extended agreement, that agreement applies automatically.

Special Cases: Companies with Multiple Activities

The difficulty increases where a company carries out several activities falling under different collective bargaining agreements. Three situations must be distinguished.

Ancillary Activities Linked to the Main Activity

Where a secondary activity is the natural extension of the main activity, the entire company is covered by the agreement governing the main activity. For example, a furniture manufacturing company that operates a sales showroom falls under the furniture industry agreement, since selling is ancillary to manufacturing.

Autonomous Activities Carried Out in Separate Establishments

Where a company carries out clearly differentiated activities in separate establishments, each establishment may fall under a different collective bargaining agreement. The Cour de cassation permits this plurality of agreements provided the establishments enjoy genuine management autonomy and the activities are effectively distinct (Cass. soc., 18 November 1998, no. 96-42.997).

For an establishment to be regarded as separate in the sense of collective bargaining, it must generally have:

Its own management or broad management autonomy;
Staff specifically assigned to the activity concerned;
A separate geographical location (a frequent but not systematic criterion).

Mixed Activities Without a Separate Establishment

This is the most delicate case. Where a company carries out, in the same location, activities falling under different agreements without any being clearly ancillary, the agreement of the main activity must be applied according to the criteria set out above (turnover or headcount). The Cour de cassation categorically refuses the distributive application of several agreements within a single establishment (Cass. soc., 26 January 2000, no. 97-45.476).

Special Situations to Be Aware Of

Employer Groupings (Groupements d’Employeurs)

Employer groupings (Articles L.1253-1 et seq. of the French Labour Code) raise a specific question. Where the grouping brings together companies falling under different agreements, the law provides that the grouping must apply the collective bargaining agreement of the sector to which its member companies belong or, failing that, the one it chooses, provided that employees receive at least equivalent benefits. In practice, the grouping must determine a reference agreement, often the one applicable to the majority of its members.

Business Transfers and Change of Activity

In the event of a business transfer (Article L.1224-1 of the French Labour Code), the transferee may be bound by an agreement different from that of the transferor. In such a case, Article L.2261-14 of the French Labour Code provides for a mechanism of “mise en cause” (calling into question) of the transferor’s agreement, with a survival period of 15 months (3 months’ notice + 12 months’ survival) during which the transferred employees retain the benefit of the former agreement, unless a substitution agreement is concluded.

Likewise, where a company changes its main activity, the applicable agreement may change. The employer must then inform the employee representatives and the employees, and the transition takes place according to the same mise en cause mechanism.

Absence of an Applicable Collective Bargaining Agreement

It occasionally happens, rarely, that no collective bargaining agreement covers a company’s activity. In such a case, the employer applies only the Labour Code and may voluntarily decide to apply an agreement of its choice, provided it does so in a comprehensive and lasting manner. Voluntary application of an agreement binds the employer as if it were legally required to apply it.

The Mandatory Statement on the Payslip

Article R.3243-1 of the French Labour Code requires the payslip to state the title of the applicable collective bargaining agreement or, failing that, a reference to the Labour Code for the provisions on paid leave and notice periods. This statement creates a presumption of application that the employee may invoke in their favour.

The Cour de cassation holds that stating a collective bargaining agreement on the payslip constitutes the employer’s commitment to apply that agreement, unless the employer demonstrates that it was an error (Cass. soc., 15 November 2007, no. 06-44.008). Conversely, the absence of a statement or an incorrect statement does not prevent the employee from claiming the application of the agreement that actually applies.

It is therefore crucial to check regularly that the agreement stated on the payslips genuinely corresponds to the reality of the activity carried out. A periodic collective-agreement audit is recommended, particularly in the event of diversification of activity, merger or internal reorganisation.

Practical Tools to Identify Your Collective Bargaining Agreement

Several resources are available to help you determine the applicable agreement:

The Légifrance website (legifrance.gouv.fr): it lists all collective bargaining agreements in force, classified by IDCC number (Identifiant Des Conventions Collectives — collective agreement identifier). You can search for your agreement by activity or by NAF code.
The APE/NAF code: assigned by INSEE at registration, it is a useful but non-decisive indicator. You will find it on your Kbis extract or your SIRENE register status notice.
The DREETS services (formerly DIRECCTE): the labour inspectorate can advise you on the agreement applicable to your activity.
Your chartered accountant or employment lawyer: in case of doubt, particularly for multiple activities, professional advice is essential to secure your choice.

Key Points of Vigilance for the Employer

Determining the applicable collective bargaining agreement is not a one-off exercise. Several situations should alert you and prompt you to reassess your collective-agreement position:

Change or diversification of activity: if the breakdown of your turnover or headcount changes significantly, the main activity may shift.
Merger, demerger, partial contribution of assets: these operations frequently entail a change of applicable agreement, with mise en cause of the former agreement.
Creation of a separate establishment: check whether the new establishment falls under the same agreement as the head office.
URSSAF audit or labour inspection: inspection authorities systematically verify the consistency between the activity carried out and the agreement applied.

In case of doubt, DAIRIA Avocats assists you in carrying out a complete collective-agreement audit, enabling you to secure the application of your social-law obligations and anticipate litigation risks.

FAQ

Does the APE code automatically determine the applicable collective bargaining agreement?

No. The APE code (Activité Principale Exercée — main activity carried out) assigned by INSEE constitutes only a rebuttable presumption. The Cour de cassation has repeatedly confirmed that it is the activity actually carried out that determines the applicable agreement, not the APE code (Cass. soc., 10 November 2010, no. 09-42.255). If your actual activity does not match your APE code, the actual activity prevails. You can, moreover, request a change of your APE code from INSEE.

What happens if my company applies the wrong collective bargaining agreement?

Applying the wrong collective bargaining agreement exposes the employer to several risks. Employees may claim the benefit of the more favourable provisions of the agreement that actually applies, notably regarding minimum wages, bonuses, leave or notice periods. Back-pay claims may be demanded over a period of up to three years (limitation period under Article L.3245-1 of the French Labour Code). URSSAF may also carry out a reassessment of contributions if the calculation bases differ between the two agreements.

Can an employer freely choose to apply a more favourable collective bargaining agreement?

An employer may voluntarily decide to apply a collective bargaining agreement other than the one to which it is legally subject, provided this application is comprehensive (all the provisions of the chosen agreement) and does not deprive employees of the benefits of the legally applicable agreement. However, voluntary application creates a commitment that will be difficult to unwind. The Cour de cassation holds that an employer who voluntarily applies an agreement is bound to comply with it in full.

How do I know if my collective bargaining agreement is extended?

You can check whether your agreement is extended on the Légifrance website, in the descriptive record of each collective bargaining agreement. The extension is issued by order of the Minister of Labour (Article L.2261-15 of the French Labour Code) and published in the Official Journal. An extended agreement applies to all companies within its scope, including those that are not members of the signatory employers’ organisations. Almost all major sector agreements are extended today.

What should I do in the event of a disagreement with an employee over the applicable agreement?

In the event of a dispute, it is the labour court (conseil de prud’hommes) that decides the question of the applicable agreement. The court relies on the activity actually carried out by the company, analysing the documents produced by the parties (articles of association, Kbis extract, contracts, breakdown of turnover, organisational chart, etc.). It is advisable to build a solid file documenting your main activity before any litigation. DAIRIA Avocats can assist you in this process.