Understanding the collective agreement

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Definition and content

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A collective agreement (in French, convention collective nationale or CCN) is a written agreement negotiated between representative trade unions and employer organisations within a given sector of activity. It establishes a set of rules covering:

• Probationary period duration
• Notice period duration
• Working time arrangements
• Minimum severance pay
• Employee classification
• Remuneration arrangements
• Maximum overtime allowance

A collective agreement may also govern specific contractual clauses, such as non-competition, mobility and intellectual property rights.

Minimum guarantees offered by collective agreements

A collective agreement provides a framework of minimum guarantees for employees, including:

• Salaries and bonuses
• Holiday entitlement
• Minimum healthcare and provident fund coverage

Some agreements may provide for additional bonuses or leave not covered by the Labour Code.

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Who does the collective agreement apply to?

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All companies falling within the scope of an extended collective agreement

In many cases, you do not have the option to choose which collective agreement applies. This is particularly the case where you fall within the territorial and professional scope of an extended collective agreement.

Where a collective agreement has been subject to an extension procedure by the Ministry of Labour, it becomes an extended collective agreement, making it mandatory for all employers and employees in the sector covered, regardless of whether they are members of the signatory trade unions.

Where a collective agreement has not been extended, its application is not mandatory unless you are affiliated with an employer organisation that signed or acceded to the agreement.

All employees of a company covered by an applicable collective agreement

When a collective agreement applies to a company, it covers all employees bound by an employment contract — including fixed-term contracts (CDD), probationary periods and open-ended contracts (CDI), among others.

However, certain employees with a special status, such as travelling sales representatives (VRP), may be excluded from its scope due to the specific nature of their work.

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Identifying your applicable collective agreement

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Why determining the applicable collective agreement matters

Before making your first hire, it is essential to understand the legal framework governing your business. In many areas, the applicable collective agreement takes precedence over the Labour Code. It is therefore vital to identify and master your collective agreement in order to implement a compliant working organisation.

Criteria and obligations

To determine the applicable collective agreement, the starting point is your company's principal activity. Each collective agreement sets out its professional scope, whether cross-sector or sector-specific, by reference to the company's main activity. The text of the agreement generally identifies from the outset the activities it covers, often by reference to the French NAF activity codes.

Determining the applicable agreement where a company carries out multiple activities

As a general rule, and to ensure that a single collective agreement applies across the whole company, the principal activity of the company must be identified and the corresponding agreement applied. The principle is therefore one collective agreement per company.

In this context, the relevant authority typically draws a distinction — also used by INSEE — based on the nature of the company: for an industrial company, the principal activity is that which employs the greatest number of employees; for a commercial company, it is the activity generating the highest turnover.

Exception: multiple collective agreements where activities are carried out in autonomous operating units

By way of exception, case law accepts that multiple collective agreements may apply within the same company where employees carry out a clearly distinct activity within an autonomous operating unit. The Court of Cassation interprets this exception very strictly, in order to preserve the unity of collective employee status within the company.

The criteria established by case law are as follows:

• A clearly distinct activity, different from the company's principal activity
• With its own organisation and management, and a high degree of operational autonomy
• An economically independent secondary activity (as opposed to an ancillary activity)
• Carried out within an autonomous operating unit, at a location separate and distant from where the principal activity is conducted

The geographical criterion appears to be decisive. By contrast, distinct activities carried out on the same site do not appear to qualify for recognition as autonomous operating units, even where a company wishes to offer its employees the collective status best suited to the specific constraints of those distinct activities.

How employees are informed of the applicable collective agreement

Where a collective agreement applies to the company, the employer is required to inform employees by providing a written document setting out the applicable collective instruments, in accordance with the Labour Code, no later than one month after the start of employment. The employer must also make an up-to-date copy of the agreement available to employees.

The importance of the collective agreement in HR management

Once you have identified your company's principal activity and the applicable collective agreement, it becomes a key element of your employment and legal strategy.

Drafting legally compliant employment contracts

The collective agreement enables you to draft contracts that comply with applicable regulations, as it governs individual employment relationships. It defines the essential elements to be included and sets out the practical conditions for using certain types of contracts, working time arrangements or organisational structures.

Implementing appropriate flexibility arrangements

The collective agreement will help you determine which forms of flexible working are available and compliant with employment law — for example, whether hourly or day-based working arrangements are possible, what the contractual conditions for remote working are, and what remuneration to offer based on experience and negotiated agreements. Certain working time arrangements require a branch, company or establishment-level collective agreement before they can be implemented. In some cases, the collective agreement may remove the need for additional collective bargaining by directly providing for arrangements such as annualised working hours, day-based arrangements or night work.

Optimising recruitment planning

By familiarising yourself with the classification levels and minimum salaries set out in the collective agreement, you will be able to plan your recruitment more effectively — defining your target organisational structure according to the required levels of experience and autonomy, while keeping your recruitment within budget.

How to access the collective agreement

In France, extended collective agreements and their amendments are freely available on official legal websites such as Légifrance. As an employer, you may also make the agreement available to employees on your company intranet, or provide a paper or electronic copy at the time of hiring.

Focus: the SYNTEC collective agreement

For start-ups operating in technology and innovation sectors, the collective agreement for Technical Studies Offices, Engineering Consultancies and Consulting Firms (SYNTEC) may be applicable. This agreement covers a broad scope of activities, including:

• Electronic games publishing
• Software publishing
• Computer programming
• IT systems and software consulting
• IT facilities management

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Conclusion: the strategic importance of the collective agreement

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Clearly identifying your applicable collective agreement is an essential step in mastering the legal and regulatory framework governing your business. It plays a central role in HR management. Taking the time to understand it thoroughly will allow you to structure your company optimally while upholding the guarantees afforded to your employees.

Do not hesitate to get in touch for assistance in determining your applicable collective agreement — particularly if your company carries out multiple activities.

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