Applicable Collective Agreement in France: How to Determine It

1. Collective agreement: definition and sources

1.1 – What is a collective agreement?

A collective agreement (convention collective de travail) is a written agreement concluded between:

• On the one hand, one or more representative trade union organisations
• On the other hand, one or more representative employer organisations or one or more individual employers

It is defined in Article L. 2221-1 of the Labour Code. Its purpose is to set the conditions of employment, professional training and work of employees, as well as their social guarantees.

1.2 – The different levels of collective agreements

The French collective bargaining system is organised at several levels:

1.3 – Extension of collective agreements

A collective agreement may be the subject of an extension order (arrêté d’extension) issued by the minister responsible for labour, making it binding on all employers in the relevant sector, whether or not they are members of the signatory employer organisation (Art. L. 2261-15 of the Labour Code). It is this extension mechanism that explains why most national sectoral collective agreements are binding on all employers in a sector, even those not affiliated with the signatory employer organisation.

2. How to determine the applicable collective agreement

2.1 – The principal criterion: the company’s principal activity

The collective agreement applicable to a company is determined by reference to its principal activity, not the nature of the functions performed by each employee. It is the company’s or establishment’s principal economic activity that determines the scope of application of the collective agreement, regardless of the functions held by the employees concerned (Art. L. 2261-2 of the Labour Code).

2.2 – The APE/NAF code: an indicator, not an absolute rule

The APE code (Activité Principale Exercée, principal activity carried out), also known as the NAF code (Nomenclature des Activités Françaises), is assigned by INSEE to each company at the time of registration. It constitutes a presumption of principal activity, but is not by itself determinative of the applicable collective agreement.

The APE code may be:

• Incorrectly assigned at registration, where the actual activity does not precisely correspond to the assigned code
• Outdated, where the company’s activity has changed since registration without the code being updated
• Insufficiently precise to determine, as between several collective agreements, which one applies

2.3 – Available search tools

Several tools are available to identify the applicable collective agreement:

• The collective agreement search engine on Légifrance
• The official portal convention-collective.fr
• Sectoral employer organisations, which can indicate the agreement applicable to their members
• The labour inspectorate, which may be consulted on this point

3. The principal activity criterion

3.1 – Defining the principal activity

The principal activity of a company is the one that accounts for the predominant share of its revenue, workforce or corporate purpose. It is assessed globally, taking into account all the activities carried out. Where a company carries on several activities, it is the economically dominant one that determines the applicable agreement.

Where there is doubt, the courts assess the principal activity on a sovereign basis by reference to:

• The breakdown of revenue between the different activities
• The breakdown of the workforce by activity
• The corporate purpose set out in the articles of association
• The nature of the contracts concluded with clients
• The job titles and functions performed

3.2 – Companies with multiple activities

Where a company carries on several distinct activities, each falling under a different collective agreement, determining the applicable agreement may give rise to difficulties. Case law holds in principle that the agreement of the economically dominant activity applies. However, where the activities are separated into distinct establishments, each establishment may fall under the agreement applicable to its own activity.

3.3 – Territorial scope

National collective agreements apply across the whole of French territory, including overseas departments and territories where the agreement expressly so provides. Certain regional agreements apply only within a defined geographical area. Where activity is carried on across several regions, the national agreement takes precedence over regional agreements, unless otherwise stipulated.

3.4 – Groups and holding companies

Within corporate groups, each legally distinct company may fall under a different collective agreement, depending on its own activity. A holding company and its subsidiaries may thus be subject to different agreements. However, where the holding company directly employs staff, its own collective agreement applies to those employees, irrespective of the agreement applicable to its subsidiaries.

4. The employer’s obligations under the collective agreement

4.1 – The obligation to inform employees

The employer is required to inform each employee, at the time of recruitment, of the collective agreement applicable in the company. This information must appear:

• In the employment contract (stating the applicable agreement)
• On the payslip (stating the title of the collective agreement and its IDCC number)
• On a notice posted in the workplace, stating the title of the agreement and where it may be consulted (Art. L. 2262-5 of the Labour Code)

The employee also has the right to obtain a copy of the applicable collective agreement on simple request to the employer, or to consult it on Légifrance.

4.2 – The obligation to comply with the minimum rates set by the agreement

The employer is required to comply with all the provisions of the applicable collective agreement, in particular:

• The minimum wages set by category and coefficient
• The job classifications provided for by the agreement
• The notice periods set by the agreement
• The severance pay provided for by the agreement, where more favourable than the statutory minimum
• Any additional leave entitlements provided for by the agreement (seniority leave, family event leave)

4.3 – Making the collective agreement available

The employer is required to make an up-to-date copy of the applicable collective agreement available to employees. In practice, it is sufficient to inform employees that the agreement is available on Légifrance and to post its references in the workplace. Failure to post the required notice or to provide the required information may expose the employer to an administrative fine.

5. Interaction between collective agreement, company agreement and the Labour Code

5.1 – The favourability principle

Traditionally, French employment law was governed by the favourability principle: where several norms conflict (statute, collective agreement, company agreement, employment contract), the norm most favourable to the employee applies. This principle continues to apply in areas not delegated by statute.

5.2 – The reform introduced by the Macron Ordinances of 2017

The Ordinances of 22 September 2017 fundamentally restructured the hierarchy of norms in employment law. They introduced a three-tier system:

• Public order provisions set by statute, from which no agreement may derogate
• The field of collective bargaining: matters on which a sectoral or company agreement may derogate from statute in either direction
• Default provisions: which apply in the absence of a collective agreement

Under this new system, a company agreement may, in many areas, derogate from the sectoral collective agreement, including in a manner less favourable to employees.

5.3 – Areas where the sectoral agreement takes precedence over the company agreement

Statute nonetheless reserves to the sectoral collective agreement an exclusive block of competences in which a company agreement may not derogate (Art. L. 2253-1 of the Labour Code):

• Minimum hierarchical wages
• Professional classifications
• Pooling of vocational training funds
• Collective supplementary welfare guarantees
• Certain conditions for the use of fixed-term contracts and temporary agency work
• Equal treatment between women and men

5.4 – The employment contract and the collective agreement

An individual employment contract may not be less favourable than the applicable collective agreement. Where a contractual clause falls below the minimum rates set by the agreement, the collective agreement applies automatically in place of that clause. Conversely, a contract may provide for advantages more favourable than those under the agreement, which then apply in place of the relevant agreement provisions.

6. Wrong collective agreement: consequences and remedies

6.1 – Consequences of applying the wrong collective agreement

Applying the wrong collective agreement, or failing to apply the correct one, may have significant consequences for the employer:

• Salary arrears: where the minimum rates under the correct agreement are higher than the wages paid, the employee may claim the difference over 3 years
• Higher severance pay: where the correct agreement provides for higher payments than those made
• Longer notice period: with corresponding payment in lieu
• Additional leave entitlements not granted: with corresponding compensatory payment
• Damages for disloyal performance of the employment contract

6.2 – Case law on the application of the wrong collective agreement

The Court of Cassation has clarified the consequences of an error in collective agreement identification in several important rulings. In the area of the annual day-based package (forfait annuel en jours) in particular, it has held that applying the wrong collective agreement does not necessarily invalidate the package, where the correct agreement also authorises this arrangement — but that the employee may claim salary arrears for days worked beyond the ceiling set by the correct agreement (Cass. soc., 25 March 2026, n° 24-22.129).

6.3 – Time limits for bringing a claim

Claims based on the application of the wrong collective agreement are subject to the following limitation periods, depending on the nature of the claim:

• 3 years for salary arrears and indemnities of any nature (Art. L. 3245-1 of the Labour Code)
• 12 months for claims relating to termination of the contract (Art. L. 1471-1 of the Labour Code)

7. Frequently asked questions about collective agreements