Which French Collective Bargaining Agreement Applies to Your Company?

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 on minimum wages, working time, leave, supplementary insurance (prévoyance) and termination of employment. Yet identifying the correct collective bargaining agreement remains a delicate exercise for many executives and HR managers.

Applying the wrong agreement is far from trivial: it exposes the employer to salary back-payments, reclassification of contractual benefits, and, in the most serious cases, labour court (prud’hommes) rulings coupled with damages. The pay slip 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 enforcement authorities.

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

The Founding Principle: The Company’s Principal Activity

French law uses an objective criterion to determine the applicable collective bargaining agreement: the principal 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 bargaining agreement is the one covering the employer’s principal activity.

This is therefore neither the corporate purpose registered with the trade 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 merely creates a rebuttable presumption, which can be overturned by evidence of the activity actually carried out. In practice, the court looks at which activity employs the greatest number of staff or generates the highest turnover.

How to Concretely Identify the Principal Activity?

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 principal activity. This criterion is favoured for commercial companies.
The headcount criterion: the activity employing the greatest number of staff is regarded as the principal activity. This criterion is favoured for industrial and mixed 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 power of assessment to determine the principal activity, provided it gives reasons for its decision.

The Territorial and Professional Scope of the Agreement

Once the principal activity has been identified, it must be verified that the company genuinely falls within the scope of the corresponding collective bargaining agreement. Each agreement precisely defines its scope along three dimensions:

Professional Scope

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

Territorial Scope

Most collective bargaining agreements have a nationwide scope. However, certain regional or département-level 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 falling within its scope, including those that are not members of any of the signatory employers’ organisations. In the absence of extension, only companies belonging to a signatory organisation are bound.

In practice, the vast majority of industry-wide agreements are extended, which simplifies the determination: if your principal activity falls within the professional and territorial scope of an extended agreement, that agreement applies as of right.

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 Principal Activity

Where a secondary activity is the natural extension of the principal activity, the entire company is covered by the agreement for the principal activity. For example, a furniture manufacturer with 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 bargaining agreement. The Cour de cassation accepts this plurality of agreements provided the establishments enjoy genuine management autonomy and the activities are effectively distinct (Cass. soc., 7 October 1998, no. 96-42.997).

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

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

Mixed Activities Without a Separate Establishment

This is the most delicate case. Where a company carries out, at a single location, activities falling under different agreements without any of them being clearly ancillary, the agreement for the principal 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., 1 February 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 issue. Where the grouping brings together companies falling under different agreements, the law provides that the grouping must apply the collective bargaining agreement for the industry to which its member companies belong or, failing that, the one it chooses, provided the employees enjoy 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 an agreement different from that of the transferor. In such cases, Article L.2261-14 of the French Labour Code provides for a mechanism whereby the transferor’s agreement is “called into question” (mise en cause), 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 principal activity, the applicable agreement may change. The employer must then inform employee representatives and staff, and the transition takes place under the same mise en cause mechanism.

Absence of Any Applicable Collective Bargaining Agreement

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

The Mandatory Mention on the Pay Slip

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

The Cour de cassation holds that the mention of a collective bargaining agreement on the pay slip constitutes an undertaking by the employer 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 mention or an incorrect mention 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 pay slips genuinely corresponds to the reality of the activity carried out. A periodic collective-bargaining audit is recommended, particularly in the event of activity diversification, 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 – 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-determinative indicator. You will find it on your Kbis extract or your SIRENE registry 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-bargaining position:

Change of activity or diversification: if the breakdown of your turnover or headcount changes significantly, the principal activity may shift.
Merger, demerger, partial contribution of assets: these operations frequently trigger a change in the applicable agreement, with a 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: enforcement authorities systematically check the consistency between the activity carried out and the agreement applied.

In case of doubt, DAIRIA Avocats assists you in conducting a comprehensive collective-bargaining 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 – principal activity carried out) assigned by INSEE creates only a rebuttable presumption. The Cour de cassation has confirmed on several occasions that it is the activity actually carried out that determines the applicable agreement, not the APE code. If your actual activity does not correspond to your APE code, the actual activity prevails. You may in fact request an amendment of your APE code from INSEE.

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

Applying an incorrect 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, in particular with regard to minimum wages, bonuses, leave or notice periods. Salary back-payments may be claimed 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 contribution 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 it is legally subject to, provided 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 from which it will be difficult to withdraw. The Cour de cassation holds that an employer who voluntarily applies an agreement is required to comply with it in full.

How can I find out whether my collective bargaining agreement has been extended?

You can check whether your agreement has been extended on the Légifrance website, in the descriptive sheet for each collective bargaining agreement. Extension is ordered by decree 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 today 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 bases its decision on the activity actually carried out by the company, analysing the documents produced by the parties (articles of association, Kbis, contracts, turnover breakdown, organisation chart, etc.). It is advisable to build a solid file documenting your principal activity before any litigation arises. DAIRIA Avocats can assist you in this process.