French Labour Law

Which Collective Bargaining Agreement Applies to Your Company in France?

DAIRIA Law · 2026-08-04 · 11 min

Which Collective Bargaining Agreement Applies to Your Company in France?

In principle, every private-sector company in France is covered by an industry-wide collective bargaining agreement (convention collective de branche). This instrument sets the ground rules for minimum wages, working time, leave, employee benefit schemes (prévoyance), and termination of the employment contract. Yet identifying the correct collective 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, the 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 agreement (Article R.3243-1 of the French Labour Code), which makes any error immediately visible to the employee and to inspection bodies.

In this article, DAIRIA Avocats guides you step by step in determining with certainty which collective agreement applies to your company, addressing both straightforward situations and the more complex cases of multiple activities or restructuring.

The Founding Principle: The Company’s Main Activity

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

The test is therefore neither the corporate purpose registered with the commercial registry nor the APE code assigned by INSEE (the French national statistics institute). The Cour de cassation (French Supreme Court) has repeatedly held that the APE code creates only a rebuttable presumption, which can be overturned by evidence of the activity actually performed (Cass. soc., 10 November 2010, No. 09-42.255). In practice, the court looks at which activity employs the greatest 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 treated as the main activity. This criterion is favoured for commercial companies.
  • The headcount criterion: the activity employing the greatest number of employees is treated as the main activity. This criterion is favoured for industrial and mixed companies.

Case law leaves the court some latitude to choose 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, subject to giving 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 indeed falls within the scope of application of the corresponding collective 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 agreement for technical consulting firms (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 agreements have a national scope. However, certain regional or departmental agreements still exist, notably in the construction, agriculture, and metalworking sectors (before the 2024 overhaul). You must verify that the company’s place of establishment is indeed covered.

Extension by Ministerial Order

Where a collective 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 falling within its scope, including those that are not members of any of the signatory employers’ organisations. In the absence of extension, only companies that are members of a signatory organisation are bound.

In practice, the vast majority of industry-wide 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 covered by different collective 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 of the main activity. For example, a furniture manufacturer that operates a sales showroom falls under the furniture industry agreement, sales being 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 agreement. The Cour de cassation allows this plurality of agreements provided that the establishments have genuine management autonomy and that the activities are genuinely distinct (Cass. soc., 18 November 1998, No. 96-42.997).

For an establishment to be considered separate for collective-bargaining purposes, it must generally have:

  • Its own management or broad management autonomy;
  • Staff assigned specifically 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, at the same location, activities covered by 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 the same establishment (Cass. soc., 26 January 2000, No. 97-45.476).

Special Situations to Be Aware Of

Employer Groupings

Employer groupings (groupements d’employeurs, Articles L.1253-1 et seq. of the French Labour Code) raise a specific question. Where the grouping brings together companies covered by different agreements, the law provides that the grouping must apply the collective agreement of the industry 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.

Transfer of Undertaking and Change of Activity

In the event of a transfer of undertaking (Article L.1224-1 of the French Labour Code), the transferee may be bound by a different agreement from that of the transferor. In such a case, Article L.2261-14 of the French Labour Code provides for a challenge mechanism (mise en cause) affecting the transferor’s agreement, with a survival period of 15 months (3 months’ notice + 12 months’ survival) during which 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 staff representatives and the employees, and the transition takes place under the same challenge mechanism.

Absence of an Applicable Collective Agreement

It occasionally happens, rarely, that no collective 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. The 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 agreement or, failing that, the reference to the Labour Code for provisions relating to paid leave and notice periods. This statement constitutes a presumption of application that the employee may invoke to their advantage.

The Cour de cassation considers that the mention of a collective agreement on the payslip amounts to an undertaking by the employer to apply that agreement, unless it can demonstrate that this was an error (Cass. soc., 15 November 2007, No. 06-44.008). Conversely, the absence of a statement or an erroneous statement does not prevent the employee from claiming the application of the agreement that is genuinely applicable.

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

Practical Tools for Identifying Your Collective Agreement

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

  • The Légifrance website (legifrance.gouv.fr): it lists all collective agreements in force, classified by IDCC number (Identifiant Des Conventions Collectives, the collective agreement identifier). You can search for your agreement by activity or by NAF code.
  • The APE/NAF code: assigned by INSEE upon 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 your employment lawyer: in case of doubt, particularly for multiple activities, a professional opinion is essential to secure your choice.

Points of Vigilance for the Employer

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

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

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

FAQ

Does the APE code automatically determine the applicable collective agreement?

No. The APE code (Activité Principale Exercée, main activity carried out) assigned by INSEE creates 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 may also request a change of your APE code from INSEE.

What happens if my company applies the wrong collective agreement?

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

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

An employer may voluntarily decide to apply a collective agreement other than the one it is legally covered by, provided that this application is comprehensive (all 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 withdraw from. The Cour de cassation considers that an employer who voluntarily applies an agreement is bound to comply with it in full.

How do I know whether my collective agreement is extended?

You can check whether your agreement is extended on the Légifrance website, in the descriptive record of each collective agreement. Extension is granted 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 industry-wide agreements are now extended.

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, contracts, breakdown of turnover, organisation 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.

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